Notes on Competitors in the Chinese Juice Concentrate Industry

China Haisheng Juice Holding Co. Ltd., a 10-year-old company, had been growing rapidly and had captured 20 percent of the export market for apple-juice concentrate. Increasing global market demand, low cost of raw materials and aggressive production scale expansion had also contributed to its success. Haisheng faced stiff competition from domestic juice producers and experienced international players. Moreover, the company had gone through two major crises over pesticide residue and an anti-dumping dispute (from the U.S. Apple Association against Chinese juice producers). In 2005, Haisheng launched an initial public offering with the assistance of Goldman Sachs. In 2006, the company faced many challenges. One of them was the unexpected decline in revenue and profit due to a shortage of raw material, limited product varieties, unbalanced market coverage, and an inefficient internal operational system. These challenges affected investors’ confidence and harmed the company’s share price. Thereafter, the company reflected on its strategies in the last decade and considered new directions for future growth. This case challenges students to analyze various managerial problems and solutions at different development stages of the company. Based on their findings from the case, students are required to make recommendations for the company’s rapid growth.