The internal integration of GP Group, which has remained at the strategic level, has finally ushered in a substantial turnaround.

Yesterday, Guangyao Pharmaceutical Group held a high-profile signing ceremony for Wanglaoji herbal tea in Baiyunshan herbal tea and took the first step in the group's “integration” operation.

To build a large health industry platform As the top ten pharmaceutical companies in the country, Guangyao Pharmaceutical Group has formed four major segments of proprietary Chinese medicines, chemical drugs, commercial logistics, and biopharmaceuticals over the years, and in the “Twelfth Five Year Plan” of the GP Group, The major health industry was integrated and designed as the fifth largest segment, and it has been determined that Wanglaoji Pharmaceuticals, with a brand value of up to RMB 1080 billion, will serve as a platform.

Baiyun Mountain Herbal Tea is produced by Hyundai Pharmaceutical's joint venture company, Baiyunshan Hutchison Whampoa Chinese Medicine Co., Ltd., while Wanglaoji Pharma is a subsidiary of Guangzhou Pharmaceutical (600332), which is based on herbal tea and pharmaceuticals. Its 2010 sales are About 15 billion yuan.

Shi Shaobin, the deputy general manager of Guangyao Pharmaceutical Group, revealed that this cooperation will bring Baiyunshan herbal tea into the sales channel of Wanglaoji Pharmaceutical Herbal Tea. Baiyunshan Hutchison Whampoa Chinese Medicine Co., Ltd. will be responsible for the production. Wanglaoji Pharmaceutical will be responsible for the nationwide distribution.

"This is the first project to be launched by the GP Group's "integration" strategy. Next, the herbal teas, health care products and drug and cosmetic products of the subsidiaries of PanGao Group, including Pan Gaoshou, Chen Liji and Jing Xiutang, will gradually be integrated. To Wang Laoji Pharmacy," Shi Shaobin said.

"First Financial Daily" was informed that the herbal tea industry is an important part of the GP Group's health industry. In addition, Wong Lo Kat Pharmaceuticals will also provide medicines, drug and cosmetic products, health products, food and sports equipment, etc. Expansion will continue to expand the scale of the large-scale health industry and realize the sales target of 50 billion yuan for the major health industry by 2015.

In November of last year, GP Group released the "Twelfth Five-Year Plan" and proposed the "11X" "Integrated Operation" strategy. Market analysts pointed out that from all kinds of signs, the “integrated operation” of Guangpharm will take the lead from the integration of industrial adjustment and sales channels, and break the obstacles and restrictions on the structure of the shares of more than 30 subsidiary companies. Internal integration of resources, brands, products and sales networks, implementation of the integration of the two listed companies.

Red Casing Wang Laoji belonging doubts At present, Wang Lao Ji herbal tea sales in the national beverage market has far exceeded carbonated beverages, its brand value reached 108 billion yuan. The action of the Guanghua Group on herbal tea has also triggered public concern about the ownership of the red can of Wanglaoji.

On February 13, 1997, Guangyao Pharmaceutical Group and Hong Kong Hongdao Group Co., Ltd. signed a trademark licensing contract, which stipulated that Hongda Group had obtained the exclusive use of Wang Laoji's trademark for the production and sales of red paper packaging and red iron canned herbal tea beverages since 1997. Right to use, the contract is valid until December 31, 2011, and the period of validity is 15 years. Afterwards, the two parties renewed the contract in 2001, and the period of validity is 20 years.

According to the contract, this year will be the year when Hong Kong's Hong Dao Group and GPHL are due to expire. So Guangpharm is reclaiming the right to use the trademark of the red can of Wanglaoji, re-incorporating the red can of Wanglaoji into Wanglaoji's self-employed business or continuing to rent it. Together with JDB, will the herbal tea industry grow stronger and bigger?

On this sensitive issue, Li Chuyuan, general manager of Guangyao Pharmaceutical Group, said: "I think the development of the "son" will always be a "son.""

In the eyes of market analysts, it is only a matter of time before Guanghan recalls the right to use the red can of Wanglaoji. On November 10 last year, GP Group held a seminar on China's IP development strategy in the Great Hall of the People and announced in a high-profile manner that the brand value of Wang Laoji was 100 billion yuan. Later, in the second half of November, the "Twelfth Five-Year Plan" was released and the goal of developing a large health industry was proposed. This time, the move to integrate its herbal tea business also demonstrated its strong determination to make a strong and healthy industry.

A senior industry analyst analyzed that in accordance with the current development trend of Guangpang, red cans of Wanglaoji can be said to be “acceptable”, but if they do not recover, Guangpeng can also choose to renew his contract with JDB, or even rule out more herbal tea products. The possibility of authorization for the operation of the JDB, jointly bigger and stronger herbal tea industry.

"Either way, Guangpong has the right to speak on the ownership of the trademark and the sharing of interests. Therefore, Jiaduobao is very tangled," said the industry insider.