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China Guide

Monday
Aug 11th
Home arrow China Headline arrow Weiquan Foods exits markets in Beijing and Guangzhou
Weiquan Foods exits markets in Beijing and Guangzhou
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The Weiquan foods brand, which has been available in Beijing for two years now, has suddenly gone missing from the capital city's grocery stores. Yesterday, a reporter from the Beijing Daily Messenger learned that the quality of Weiquan's yogurt beverage, yogurt and fruit juices were impacted due to lengthy transport distances. The Weiquan Food Co., Ltd has cancelled its subsidiaries in Beijing and Guangzhou, which have suffered losses for years.

Yesterday Ms. Shan, who lives in the Weiquan district of Beijing, stated that Weiquan's products can't be bought anywhere. After the Spring Festival she couldn't find any Weiquan's products even after visiting seven supermarkets. Yesterday, the reporter also visited several large-sized supermarkets, including Wal-Mart, Carrefour and Chaoshifa, and although all kinds of diary products and fruit juice brands were prominently displayed, there was no trace of Weiquan's products. According to sales promoters, after the Spring Festival Weiquan's products have not been supplied to the Beijing market. Those which are still available were part of inventories before the Spring Festival.

Why did Weiquan so suddenly leave the Beijing market? The Beijing Daily Messenger reporter learned from the Public Relations Department of Weiquan Food Co., Ltd that the main reason lay in the fact that Weiquan Yogurt was all manufactured in a plant in Hangzhou. Delivery to Beijing required two to three days. Therefore, the "fresh" quality requirement of the yogurt was not able to be met. Although Weiquan has exited the markets in Beijing and Guangzhou, Weiquan's products, including yogurt and fruit juice, will continue to be sold in Hangzhou and Shanghai.

With regard to the spreading news that Weiquan is losing money by staying in Beijing, a representative from the company's Public Relations Department confirmed the facts. The representative revealed that the cost of raw materials has risen and production costs have surged as a result. In addition to this, the expensive transport cost, toll and the entrance and managerial fees also contributed to rising costs. After weighing both the advantages and disadvantages, Weiquan will focus on the market in East China after exiting the market in Beijing and Guangdong.




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