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Even so, Ning Gaoning, chairman of COFCO, endeavored to continue its investment in Beijing Wugu Dojo Food Co., Ltd. (formerly known as: Beijing Wugu Dojo Food Technology Development Co., Ltd., hereinafter referred to as “Wugu Daochangâ€). From the news of COFCO internals, in 2010, Ning Gaoning still pursued a grain sales of 200 million yuan at Grain Valley, despite the fact that the grain field did not complete its established sales tasks.
Those who had been deeply involved in COFCO's orders at Grain Valley, revealed that Ning Gaoning had a profound meaning for the “preference†of the Grain Valley Dojo. One of the important intentions of the Central Grains Food Co., Ltd., which was to serve as a production base for the Wugu Dojo Production Base in Beijing, was that COFCO hopes to establish a comprehensive industrial chain industrial park in Beijing, and that Grain Dojo is the “stone†for stone throwing.
The revolution has not yet been successful, but now there are executives leaving the crisis. The newspaper was informed that SONG Guoliang, a senior professional manager of the instant noodle industry, which COFCO had previously scrupulously excavated, had already left Grain Valley. At present, COFCO has appointed Chen Zhanjiang, general manager of COFCO Coca-Cola Beverage (Shandong) Co., Ltd. as the new leader in the grain industry.
It was quietly changed and the main newspaper was informed that Song Guoliang submitted resignations to COFCO in September and October 2010.
Before joining COFCO Grain Valley, Song was already a senior professional manager in instant noodle industry. Since entering the instant noodle industry in 1991, he has launched a series of best-selling products such as “Roasted Beef Noodles†and “Big Bone Noodles†at White Elephant. Especially during the period when he was in charge of white elephants, Baixiang instant noodle sales revenue increased exponentially.
The above-mentioned sources who had been deeply involved in COFCO's orders at Grain Valley, revealed that COFCO's selection of Song was mainly due to its experience in product development, brand operation, and channel construction of instant noodles. Prior to this, there were no people inside COFCO who knew the instant noodle business.
Song Guoliang, after taking office in early 2009, has boldly changed the original products and packaging of the Wugu Dojo. In the second half of 2009, COFCO Grain and Grain Dowti launched six new products. In addition to continuing the concept of traditional “non-fried†instant noodles, it also highlighted innovations in flavors, including the “original chicken soup noodles†and “private†of the six flavors. The "Meat Beef Noodles", "Spicy Pork Bone Noodle Soup", and "Spicy Beef Bun Noodle Soup" are original creations in the COFCO Wugu Dojo.
The market does not seem to be paying for these innovations. Song Guoliang is faced with a difficult reality - sales will not go up.
A former employee of Grain Valley Road said that the sales target set in early 2010 had not been completed and the target had been lowered during the period. The report that the newspaper obtained without the official approval of the Wugu Dojo was that in 2010, the sales volume of the Grain Dome was only 200 million. Since the arrival of COFCO, the grain market has been losing money.
However, the aforementioned people who participated in COFCO's orders at the grain market have revealed that poor performance is not the main reason for the departure of Song. Differences in business thinking are the key.
Song Guoliang was a businessman of instant noodles for deep-fried noodles. He joined the COFCO Grain and Grain Co., Ltd. at the beginning of the meeting. He will continue the concept of non-fried instant noodles, but he will not refuse to fry. In other words, Song advocates non-fried and fried fish.
The newspaper was informed that COFCO Grain Valley Farm has also put into production some fried instant noodle products, but it has not adopted the brand of “Gangu Dojoâ€. Including the factory of Grain Valley in Beijing, there are currently 5 instant noodles production lines, of which 3 are non-fried and 2 are fried.
According to industry sources in instant noodles, the new leader of the Grain Valley Dojo will return to the “non-fried†tone for the brand, product, and marketing positioning of the “Wada Dojoâ€.
After Chen Zhanjiang took office, Wugu Dojo launched two new types of non-fried instant noodles, the “Fashion†series and the “Large Vegetable Pack†series. The company’s monthly sales have recently been increased by a large margin, with monthly growth of four to five hundred. Million, more than 10 million monthly increase. According to market demand, two fried lines at the Beijing factory of Wugudaochang will be transformed into non-fried production lines, and factories in Jiangxi and Guangdong will also plan to add a new non-fried production line.
In addition, in order to make profits quickly, any new hand has already begun to "open source and reduce expenditure" in the internal control and control link. For example, in the procurement process, through the search for cooperation with several suppliers, the relative preferential policies of suppliers can be obtained and the procurement costs can be reduced.
The goal of any new handle in Wugu Dojo is to strive for sales of 600 million yuan in 2011, to break even, and to make profits in 2012.
At the beginning of the arrival of Doosan Road, COFCO executives clearly stated that they hope to start the acquisition of Dojo Dojo and set foot in instant noodles as COFCO's convenience food field.
Previously, COFCO has built a new business segment called “Quick Foodâ€. Instant noodles are just the beginning. After that, COFCO plans to get involved in convenient rice noodles, convenient rice noodles, microwave foods, frozen foods and so on.
From the perspective of the industry chain, COFCO expects that the convenience food business starting with instant noodles will become a natural extension of COFCO's processing business such as grain and oil flour in the upstream, and will further expand the industrial chain of agricultural and sideline products.
Since 2009, under the leadership of Ning Gaoning, COFCO has begun a major transformation - creating a business model of the entire industry chain. To this end, COFCO, through its subordinate holding company, strives to build its industrial chain including rice, wheat, corn, oil and fat, barley, sugar, tomatoes, and feed.
For COFCO, Grain Valley is not only a “game piece†at the strategic level of COFCO's extension industry chain, but also to a certain extent, it is the tactical "stone" of COFCO's "full industry chain" strategy.
The above-mentioned persons who participated in COFCO's acquisition of Wugu Dojo revealed that after COFCO took over the Beijing production base of Wugu Daechang, the COFCO and Fangshan District local governments had already intended to further strengthen cooperation based on the successful cooperation of the Wugu Daochang project.
One of the results of the cooperation is that COFCO's first comprehensive industrial park in the Beijing area has been able to settle in Fangshan. At the end of 2009, COFCO and the Fangshan District Government reached an agreement on jointly building the "Beijing China Agricultural Ecological Valley" project in Liulihe Town.
In November 2010, COFCO and the Beijing Municipal Government signed a strategic cooperation framework agreement to jointly build an agricultural ecological valley in Beijing, China (hereinafter referred to as the "Agricultural Ecological Valley").
In fact, the Beijing Fangshan Agricultural Ecological Park is just one of the several industrial chain integrated industrial parks implemented by COFCO in 2010. In the past year, COFCO successively announced plans to invest in the construction of an industrial park in Chengdu, Sichuan, Xingping, Shaanxi, and Fangshan, Beijing. The industrial park in Zhengzhou, Henan Province, has started its foundation.
In October 2010, Ning Gaoning clearly stated in the "Integrated Industrial Park Symposium" within COFCO Group that the promotion and construction of integrated industrial park projects was a major issue concerning how COFCO's "full-industry-chain" strategy should be launched. Ning Gaoning hopes that through the comprehensive industrial parks distributed in various regions of the country, each COFCO's entire industry chain business will achieve organic synergy within each region.
After a loss and loss in the grain field, Ning Gaoning insisted on "preference."
Since COFCO officially took over the Wugu Dojo in February 2009, its sales volume has been difficult to improve in the past two years. Outside the world and even within the COFCO Group, the suspicion of the arrival of the Dojo Valley Dojo has never ceased.