Wells Square trapped in "chaotic period" local executives don't work in foreign companies

Industry insiders said that the current water wells Square encountered the problems of industry adjustment, management of the handover, high-end wine sales blocked, low-priced brand wine has not yet formed such as Diageo spent seven years, and finally the water wells square into the bosom. In the industry's view, Diageo at large sums up the performance of the fall of the Wells Square, its real intention is to optimistic about the water Wells Square's capital market advantages and the future of Chinese liquor industry. After the change of the brand of water wells will face multiple difficulties, local executives inadvertently management, foreign personnel have not entered, the water Wells Square will enter the management of the chaotic period. Mashi into the foreign brand recently, water Wells Square issued a notice that Diageo acquired Sichuan Chengdu Xing Group Co., Ltd. the remaining 47% shares of the transaction has been approved by the relevant authorities. The group was previously a holding shareholder of Wells Square with 39.71% per cent, while Diageo held a 53% stake in the full Hing group. By the end of the deal, Diageo's indirect stake in Wells Square will also rise from 21.05% to 39.71%. The acquisition, Diageo will pay 2.2 billion yuan of true gold and silver, all Hing Group also renamed as Wells Square Group. From 2006 into the water Wells Square, Diageo came all the way, after seven years to finally build a fruition, and become a foreign-funded wells Square, will disappear in the Chinese wine business list. has been in the downhill water Wells Square, after the change in the foreign brand, can usher in spring? As an international wine giant, Diageo has failed to locate a high-end wine in the water well square, and then how to lead the development of the Wells Square has become the focus of the industry. In the industry, there is no hope that the Wells Square will achieve growth in a short time. The enterprise enters the transition Chaos period history, after each enterprise buys, the personnel changes and adjusts inevitably. Mashi is no exception, although Diageo and the original group of senior executives in the water Wells Square management problem has seven years of running-in, but the way is not smooth. A person familiar with the water well Square told the securities daily that Diageo was determined to be a local company in China, and that the whole Hing Group had a premature retreat, so the contradiction between the two sides was self-evident. In the absence of a 4% per cent stake in Chengdu Ying Shing, the original holding shareholder of the group, Diageo has a relatively weak voice in the Wells Square, with only two seats on the board of Wells Square, which makes it difficult to decide on decisions. Diageo accelerated its bid for control, after which Diageo acquired 6% per cent from the full union. Now, after the water well square becomes the foreign capital Enterprise formally, the whole Hing senior executive's stay is a sensitive topic. "Before Diageo held the water well square, the full-time staff began to move. "The above understanding of Wells Square staff told reporters." Data show that in early 2009, Shui Jing Fang Dong Zhang Zongjun The 12704-share water well square in the vicinity of 16 yuan/share two times through the two-tier market, and January 15, 2010, he once again sold 22.95 yuan/share. In addition, nearly 10 water well square executives, including Shijiang and Zhu Guoying, are in Diageo holdingsThe Wells Square has repeatedly sold its Wells square stock through the two-tier market. "At present, the mentality of water well square executives is that local executives do not work, the foreign executives have not come to the management of Wells Square into a chaotic period." The above officers told reporters. The water well square disorderly, can still mess over the present Lang wine? "Now the water well square is not good, Lang Wine chairman Wang Junlin although play disappeared, but the company's revenue did not fall very strong, Wells square high-end wine revenue fell by about 50%, low-end wine performance worse." "For the current situation of water wells, in liquor senior experts Iron Plow, water wells Square face three aspects of pressure, industrial adjustment pressure, corporate team butt pressure, high-end wine sales, low-end wine not very good brand pressure." Therefore, in the short term, he is not optimistic about the wells Square and maintains a cautious optimism. Iron Plow said that the water wells square high-end wine revenue fell more than 50%, medium and low price wine did not form. In the next three years, the joint of corporate culture and the team, the formation of low-cost wine, these will drag Wells Square. The decline in performance is known to have been full of confidence when Diageo entered the water Wells Square. The head of the former Diageo China region, Mashi's former vice-president and general manager Macpherson, has said that Diageo is not in the Chinese market to achieve a 20% annual growth, but more than 80%. It seems that Diageo is a little far from his Chinese dream. When Diageo entered the water well square, the securities daily interviewed seven years ago that the water Wells Workshop had not been developed on a large scale. Mashi 2006 revenue of 800 million yuan, after seven years of development into 1.63 billion yuan, net profit from 2006 100 million yuan rose to 330 million yuan. Although operating income and net profit increased by one times, but in addition to liquor business, the real estate business contribution is not small. Sichuan brand with the Tuo licensing, 2006 company revenue is also 800 million yuan, 2012 has overtaken Wells Square, reached 1.95 billion yuan, net profit from 2006 less than 20 million yuan to 2012 years of 360 million yuan. In other words, Diageo entered the water wells, although also in the golden 10 years of liquor, but, because of the run-in with the new owners need a process, so that the performance of the water well Square has not changed much, and its foreign market progress is generally. "95% of the market in the country, foreign markets generally, but, with the development of the economy, Chinese liquor enterprises with the world is a matter of time, Wells Square than others to first step, however, to truly become a global liquor enterprises, Wells Square in the future road is very difficult." "A Chinese liquor expert, who declined to be named, said to reporters. In fact, despite multiple factors, Diageo's policy of specialising in high-end products at Wells Square now appears to be a failed position. Next, the strategic adjustment that Diageo will have for the Wells Square is not yet known. "After the industry's entry into the adjustment period, Diageo's market strategy for locating high-end wines in Wells Square was badly hit and sales fell sharply, with no hope for the next 3 years-5 years." "The aboveChengdu senior Personage said to the reporter. In fact, from the water Wells Square 2012 years of performance and the first quarter of this year's performance can be seen, the restrictions on the three public consumption policy, a first-line liquor brand Maotai and Wuliangye prices plummeted, 800 yuan/bottle below the price is Maotai, Wuliangye products occupy, this to Wells Square, Jiannanchun, Lang Liquor and other enterprises of high-end wine sales is undoubtedly a huge blow, and Wells Square and lack of historical and cultural endorsement, its low-priced wine did not form a brand, therefore, the performance of Wells square decline is expected. Mashi 2013 Quarterly bulletin shows that during the reporting period, The company realized operating income of 324 million yuan, down 49.52%, almost halved; realize net profit of 114 million yuan, fall 36.79%; the cash flow generated by operating activities is 68.02 million yuan, down 709.19%, and 11.166 million yuan in the same period last year; In addition, it sells goods, The cash received was significantly lower than the same period last year, at 197 million yuan, compared with 497 million yuan in the same period last year. The decline in performance is directly related to industry adjustment, but the water Wells Square's strategy of positioning high-end wines is also a major cause of the decline in performance. Now, to give the water well square history and culture of the whole Hing group retreat, water Wells Square to become a foreign brand. Lost all hing wine history and culture endorsement of the water well square, the future of the road to become the focus of attention, this newspaper will continue to pay attention.