BEIJING, May 19, 2020 /PRNewswire/ -- TCP Group, the inventors and owners of the Red Bull brand and trademarks in China and globally, today announced a series of investments totaling RMB 1.06 billion over the next three years in China. Marking the beginning of an exciting new chapter for Red Bull, the investments will further expand TCP's presence in the Chinese market by supporting its local partnerships, establishing a new representative office, in-country team, and manufacturing centers as well as supporting the launch of new Red Bull products and other innovative products from TCP's global portfolio.
New investments to expand TCP's presence in China
As part of the investments, TCP has carried out a series of feasibility studies aimed at exploring the possibility of opening new manufacturing centers in China. TCP is committed to investing further in the Huairou District by opening a new manufacturing center. The local government has been providing support and assistance to facilitate this undertaking despite the many challenges presented by the COVID-19 pandemic.
Recognizing the need to establish a more permanent presence in China, TCP has set up a company. This new foundation and new in-country employee base will help TCP to better enhance its marketing and R&D capabilities by better understanding the needs, habits, and preferences of local consumers and to develop products that can even better meet their particular needs. As the China marketplace continues to evolve rapidly, TCP's new in-country capacity will ensure the demand from its Chinese customers is met through constant innovation and the introduction of new products in the very near future.
Mr. Saravoot Yoovidhya, Chief Executive Officer of TCP, said, "TCP is proud to unveil our planned investments of RMB 1.06 billion over the next three years in the Chinese market. China, as my family's ancestral home, has always been at the front and center of our ambitions to become a global 'House of Brands,' and our new commitment will help make that aspiration a reality, by strengthening our foundations in-country and therefore empowering TCP to bring the very best of Red Bull to Chinese consumers. We are grateful to the Beijing Municipal Government, Huairou District Party Committee and the Huairou District Government for always providing such an excellent business and investment environment and thank them for their support for our next phase of expansion. We hope that through these efforts in Huairou, and at this particular time since the COVID-19 epidemic has come to an end, we can achieve our common goals in terms of economic growth as well as continue to build upon TCP's longstanding commitment to China by contributing to its sustainable development."
New partnerships and business model to power TCP's bright new future in China
TCP has been establishing new partnerships and a new business model to ensure the long-term development of Red Bull in China. At its heart, this ambitious strategy is focused on continuing to provide high-quality and legitimate Red Bull products to the vast number of Chinese consumers. The new business model is in line with the business model that TCP follows around the world, which has allowed TCP to build such a strong international business through a network of trusted partners.
TCP has been launching new Red Bull products in China thanks to TCP's local strategic partners, Guangzhou Yao Energy Co., Ltd. ("GZYE") and Pusheng Food Sales Co., Ltd. ("PS"). The new Red Bull products include the locally produced Red Bull® An Nai Ji Drink which contains a unique combination of high-quality ingredients, including American ginseng extract and Red Bull® Vitamin Flavor Drink, which brings China's consumers the classic taste of Red Bull, imported directly from the iconic brand's birthplace in Thailand. As the latest additions to TCP's world-class 'House of Brands,' both products have proven immensely popular among Chinese consumers. With the joint efforts of local partners, we've seen a continuously strengthening local distribution network for the two products, which has achieved geographical coverage across 227 cities in 24 provinces nationwide, as well as over 1 billion RMB in sales revenue for nearly half a year in 2019. TCP's new investments are expected to drive major increases in the production and sale of Red Bull products.
Mr. Saravoot Yoovidhya said, "Our partnership with GZYE and PS brings together the international market standards of Red Bull products, best-in-class operations and management capabilities, and unparalleled marketing and distribution expertise as well as a deep-felt passion and respect for the Red Bull brand – all of which adds up to what is an innovative venture with boundless potential, heralding an exciting new dawn for Red Bull in China. We will further strengthen this strategic partnership and work closely with our local partners to ensure that our business continues to play a small but important role in supporting the development of the entire Chinese beverage industry."
Looking to the future, Mr. Saravoot Yoovidhya said, "Due to the COVID-19 pandemic, 2020 is one of the most challenging years the world has faced in decades. However, TCP remains unwavering in our determination to continue contributing to the development of China's economy and society during these difficult times."
He concluded, "The announcement of our new investments follows the recent launch of TCP's China Intellectual Property Protection Fund with the support of numerous Chinese governmental agencies. We've also donated over RMB 12 million as well as many Red Bull products to help fight COVID-19. In the months and years to come, TCP will continue devoting ourselves wholeheartedly to building a healthy, prosperous future together with our partners and loyal Chinese consumers."
