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Nongfu Spring launches a price war!

This summer, the bottled drinking water market is very busy, and a new round of "price war" is surging. The price of a single bottle of drinking water from well-known brands such as Nongfu Spring, Yibibao, and Wahaha has dropped to less than 1 yuan, and the new green bottle of Nongfu Spring has been sold at as low as 0.66 yuan per bottle in some channels.

Netizens commented: "Nongfu Spring is anxious and starts to fight back" and "Except for the bottles, the costs are relatively low." Some also said "I won't buy it even if the price drops further."

Falling below 1 yuan! Nongfu Spring turns "green" and provokes a price war

On July 14, a Red Star News reporter visited and found that Nongfu Spring, which just launched its green bottled pure water in April this year, has been promoting its products online and offline.Some channels even offer prices as low as 0.66 yuan per bottle, which is a drop of more than 60% compared to the retail price of 2 yuan per bottle.

In offline supermarkets, a pack of 12 Nongfu Spring red-bottle natural water costs 10.9 yuan, a pack of 12 Yilibao purified water costs 10 yuan, and a pack of 12 Wahaha purified water costs 14.9 yuan.

In a supermarket, a green bottle of Nongfu Spring costs 8.9 yuan each.

At the end of April this year, Nongfu Spring launched green bottle pure water, with a retail price of 2 yuan per bottle. By June, the price of Nongfu Spring green bottle pure water in supermarkets was as low as 1 yuan per bottle. Now, the discount has been further increased, and Nongfu Spring Douyin official flagship store has lowered the price to 0.82 yuan per bottle.

The market value evaporated by HK$140 billion, and the controlling shareholder intends to increase its holdings by no more than HK$2 billion

On May 3, Nongfu Spring's stock price reached a peak, with a market value of HK$535.8 billion. However, it began to fluctuate downwards, and as of the close of July 12, the total market value was about HK$394.7 billion. In the past two months, the total market value has lost HK$141.1 billion.

Then, on the evening of July 9, Nongfu Spring issued an announcement on its share purchase plan: "Based on the recognition of the company's value and the confidence in the overall business development and growth potential in the future",The company's controlling shareholder, Yang Sheng Tang, plans to acquire and increase its holdings of the company's H shares within six months, with the total amount expected to be no more than HK$2 billion.

As of the date of this announcement, Yangshengtang directly holds approximately 66.82% of the issued shares of Nongfu Spring; as the actual controller of Nongfu Spring, Zhong Shanshan directly and indirectly holds approximately 83.98% of the issued shares of Nongfu Spring through Yangshengtang.

Standing behind Nongfu Spring, Zhong Shanshan has been China's richest man for three consecutive years from 2021 to 2023. In 2024, Zhong Shanshan is 70 years old and still firmly sits on the position of richest man.

Data source: New Fortune

Drinking water involution intensifies

This summer, the drinking water market is in turmoil, and the "water war" dominated by ultra-low prices has already begun.

According to Xinhuanet Finance, many convenience stores are offering discounts on packaged drinking water from brands such as Nongfu Spring, Wahaha, and Yibibao, with prices as low as 0.8 yuan per bottle. Online, brand discounts are also on the rise.

An industry insider said,Nongfu Spring launches a price war, which has a great impact on other brands, its green bottled purified water has a more advantageous supply price to agents and terminals, and other brands have to follow suit and cut prices for promotions.

This year, the bottled water market has been very busy.C'est bonThe parent company is about to go public in Hong Kong.Nongfu SpringLaunching new purified water products, another well-known brandBaisui MountainAnnounce new marketing actions.

at the same time,Oriental SelectionIt also stepped in to stir up the bottled water market, launching drinking water products among its own products with a daily price of no more than 2 yuan per bottle.

At present, the fierce "water war" in 2024 has been fully launched with the help of low prices. Zhu Danpeng, a Chinese food industry analyst, said that this year, Nongfu Spring has launched purified water products and adopted a low-price strategy, which has become a "spoiler" in the purified water market. However, price cuts are not a long-term solution, "which may lead to market confusion and damage to the brand image."

Have you ever drunk Nongfu Spring green bottled pure water? What brand of bottled water do you usually drink? Welcome to leave a message to discuss.

Source: Announcements from listed companies, Xinhua Finance, Red Star News, and comments from netizens

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Editor of this issue: Jiang Peipei

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