Backed by genji Forest, with a humble business, the 71-year-old has become the world’s no. 1
On February 10th, Sanyuan biotechnology was officially listed on the Shenzhen Stock exchange.The company priced its IPO at 109.3 yuan per share, giving it a market value of 18 billion yuan at one point.Few people should be able to imagine that the creation of this 18 billion industry giant, in fact, is a 71 year old man – Nie Jianjian.Prior to taking the helm at Sanyuan, Nie had another entrepreneurial experience, running a printing and dyeing factory with a friend, according to public documents.However, the prospects for printing and dyeing factories were limited, and Nie was exposed to sugar substitutes during a business trip to Japan, so he officially founded sanyuan Biological, a sugar substitute manufacturer, in 2003.The so-called substitute sugar, refers to erythritol, taste is not sweet, and not easy to damage the stomach, with zero calories, natural health and other advantages, so many current sugar-free drinks are used in this kind of sugar.For example, the popular diet drink brand Genqi Forest uses erythritol in its best-selling sparkling soda.Moreover, the erythritol used in yuanqi Forest is derived from ternary organisms.The author learned that Sanyuan biological is one of the first batch of industrial production factories for erythritol in China. Under the guidance of Nie, Sanyuan Biological has gradually developed into a leading enterprise in the industry.According to Sullivan’s research data, ternary organisms accounted for 32.94% of the global total production of erythritol in 2019, becoming the world’s largest erythritol producer.Sanyuan and erythritol are really popular, but also thanks to the company and Genqi Forest cooperation.Since 2019, The sugar-free sparkling water of Yuanqi Forest has become popular all the way under the foundation of numerous advertising and marketing, as well as the publicity of the concept of “sugar-free”, and has become the first choice of young people, especially those who pay attention to losing weight.Thanks to the explosion of Yuanqi Forest, the humble business backed by Yuanqi Forest has been highly promoted and its business performance has also risen rapidly.Sanyuan bio’s revenue grew steadily from 2018 to 2020, reaching 783 million yuan in 2020, according to the company’s prospectus.At the same time, erythritol has also become the guarantee for sanyuan’s survival, accounting for 79.88% of its main business income in 2020.As Yuanqi Forest drives Sanyuan Forward, the industry leader is also gradually expanding its customer base.Today, in addition to Yuanqi Forest, Sanyuan biological has also developed well-known enterprises as partners, such as Coca-Cola, Pepsi, Nongfu Spring, Uni-President, TIH, Southern and Sesame paste.It is worth mentioning that in fact, not only Sanyuan organisms have enjoyed the dividends brought by The Yuanqi Forest, but also Dezhou Baolingbao and Zhucheng Dongxiao, which are located in Shandong Province, have risen rapidly under the influence of Yuanqi Forest.However, in my opinion, in the final analysis, erythritol manufacturers have become the focus of attention inside and outside the industry, essentially benefiting from the rapid development of sugar-free racetracks.According to data released by Toubao Research Institute, from 2015 to 2019, the domestic sugar-free beverage market grew at a compound annual growth rate of 45.7%, reaching 9.64 billion yuan.With the explosion of sugar-free concept, sugar-free beverage has become popular all over the country. Syuan Bio and other erythritol suppliers have a promising future.At the end of the day, however, the sugar-free concept exploded on the premise of information asymmetry.Manufacturers use the concept of sugar-free, promote drinks “zero sugar, zero fat, zero calorie”, consumers’ consumption concept has changed in recent years, so the marketing effect is naturally very good.But as more professional analysis is carried out, consumers will eventually realise that sugar-free is just a gimmick.True, low sugar substitutes produce negligible calories, but they do increase appetite.In addition, there is no current study to prove that the consumption of substitute sugar does not affect insulin.This means that the health and safety of sugar substitutes are still in doubt, so the popularity of sugar-free racetracks can only be seen as a short-term effect, and it remains to be seen how it will change in the long term.