YANGYUAN(SH:603156) Sou Hu Cai Jing·2025-10-26 10:22Core Insights - The article discusses the rise and fall of Yangyuan Beverage and its flagship product "Six Walnuts," highlighting the company's journey from peak sales to significant losses and market decline [1][20]. Company Overview - Yangyuan Beverage was founded in 1999, initially struggling with debts of 9 million and nearly unable to pay employee salaries [3]. - The company gained prominence with "Six Walnuts," which became a popular gift beverage, achieving sales of 91.17 billion in 2015, equating to 25 billion cans sold that year [11]. Product Development - The initial product was unpalatable, prompting the founder to invest time in improving the taste to make it more appealing to consumers [7]. - The marketing strategy included positioning "Six Walnuts" as a nutritious gift, leveraging high-profile advertising campaigns, including a 158 million sponsorship of the show "The Brain" [9]. Market Strategy - The company adopted a "rural encirclement of cities" strategy, focusing on smaller markets before expanding nationwide [11]. - By 2017, the company went public, with a share price of 78.73, leading to a market valuation peak of 500 billion [13]. Challenges and Decline - The product faced criticism for misleading labeling regarding its nutritional content, leading to a loss of consumer trust [15]. - The beverage market evolved, with competitors introducing innovative products, while "Six Walnuts" stagnated in development, focusing more on advertising than product improvement [17]. - The COVID-19 pandemic severely impacted sales, with revenue dropping to 44.27 billion in 2020, less than half of 2015's figures [20]. Current Status - By 2023, the company faced further issues, including a significant financial loss due to a distributor's fraud, leading to a market value drop of over 200 billion [22]. - Despite maintaining around 60 billion in revenue, the company struggles to regain its former market position [22]. Future Prospects - The founder's recent investment in the semiconductor industry raises questions about the company's direction and potential for recovery [26].