Chongqing beer sued by its own people: accused of squeezing market share of mountain city

 Chongqing beer sued by its own people: accused of squeezing market share of mountain city

Chongqing Brewery (600132. SH), which is promoting asset injection, disclosed a lawsuit notice before the festival, which was somewhat unexpected. Because the listed company was sued by its long-term partners, the reason was that during the underwriting period agreed by both parties, Chongqing beer had many defaults and occupied the market share of Shancheng beer. The amount involved in the lawsuit was as high as 639 million yuan, and the amount was not small.

To be sued by ones own people

On the occasion of the double festival, Chongqing beer disclosed a lawsuit that made people laugh and cry.

It is reported that the plaintiff of the lawsuit is Chongqing Jiawei Beer Co., Ltd. (hereinafter referred to as Chongqing Jiawei), and the amount of claim is temporarily RMB 639.15 million and litigation costs; the defendants are listed company Chongqing beer, Chongqing beer New Area Branch, Chongqing beer North New Area Branch, Chongqing beer No.6 factory, and Carlsberg beer (Guangdong) Co., Ltd., the related party of the listed company The company, Carlsberg (China) beer industry and Trade Co., Ltd., and Carlsberg (China) beer industry and Trade Co., Ltd. Chengdu Branch.

Chongqing Jiawei, a joint-stock subsidiary of the listed company, filed a civil complaint with the first intermediate peoples Court of Chongqing on September 27, 2020. The first intermediate peoples Court of Chongqing issued the notice of litigation matters of Chongqing first intermediate peoples Court on September 28, 2020. The listed company received the notice of the above litigation matters on September 30, 2020. At present, the case is in the stage of being accepted but not yet in court.

However, since 2011, there have been a lot of breach of contract by the listed companies, and the listed companies and other defendants in the case have taken a variety of related party transactions such as entrusted processing, authorized production, sales of purchased liquor in Chongqing, brand adjustment and promotion, etc., squeezing the market share of Shancheng beer and damaging the interests of the plaintiff. From 2015 to 2016, the plaintiff and the defendant successively signed the supplementary agreement to the product underwriting framework agreement, the product underwriting memorandum, several monthly communication meeting minutes and other documents. The plaintiff conditionally agreed not to investigate the liability for breach of contract of the listed company before, and made a concession. However, since 2017, the listed companies and their subsidiaries have continued to expand related party transactions with Carlsberg beer (Guangdong) Co., Ltd. and Carlsberg (China) beer industry and Trade Co., Ltd., damaging the interests of the plaintiff.

However, in the face of the lawsuit, Chongqing Brewery believes that it has fulfilled its responsibilities and obligations in accordance with the underwriting agreement involved in the case and other agreements, and the company will actively respond to the lawsuit, but at present, it is unable to accurately judge the specific impact.

Looking back on Chongqing beer, since its establishment in 1958, Chongqing beer has been engaged in the manufacturing and sales of beer products. Up to now, there are 13 breweries and 1 joint-stock brewery, which are located in Chongqing, Sichuan and Hunan. Chongqing market is the core market of the company. Speaking of its brands, Chongqing beer holds the above-mentioned mountain city and Chongqing two local brands. Since becoming a member of Carlsberg group, the third largest brewer in the world at the end of 2013, Chongqing beer has obtained the production and sales rights of Le Borg, Carlsberg and Kaixuan 1664, forming a brand combination of local strong brand + international high-end brand.

According to the public information, in the operation, Chongqing beer strengthens the medium and high-end product portfolio for local brands, such as Chongqing state-owned alcohol wheat, Chongqing wheat white, and Chongqing black beer; Chongqing Chunsheng, which represents the high-end products of local brands, has been expanded to the district and township markets through the existing drinking channels, so as to continuously improve consumers awareness of local high-end brands. Chongqing beer, which holds 51.42% of the shares, produces and sells major beer brands including local brands Chongqing, Shancheng, Xiangjiaba and Yipin, as well as international high-end brands Carlsberg and Lebao.

At this time, the number of brands owned by Chongqing beer will leap, and the stock price of Chongqing beer will also keep rising, reaching a new high of 106.6 yuan on September 28.

As for the impact of the transaction, Chongqing Brewery described in the plan that after the completion of the transaction, the brand matrix of listed companies will be further expanded and become one of the few market participants with the combination of local strong brands + international high-end brands in the Chinese market. By strengthening the brand combination, international high-end brands and unique local strong brands in the core regional market complement each other, and the listed companies will better meet the needs of consumers for different consumption scenarios and price ranges; in addition, the core advantage regional market of listed companies will expand from Chongqing, Sichuan, Hunan and other places to Xinjiang, Ningxia, Yunnan, Guangdong, East China and other national markets u201du3002 But does the completion of the restructuring mean that it will further squeeze the market share of mountain city? Interface news will continue to be tracked.

Source: interface news Author: Zhao Yangge, editor in charge: Wang Xiaowu_ NF