Sixteen years ago, seizing the opportunities of reforms and opening up to the outside world, Mr. Zhu Xinli resigned his job as a leader and set up his Huiyuan Company, which has now become a leading enterprise in China’s beverage industry. Not long ago, the reporter for China Beverage had an interview with him on some issues.

Reporter: Mr. Zhu, 16 years ago, you seized the rare historic opportunity of Deng Xiaoping’s Southern Tour and Speech, resolutely resigned your job as a leader and contracted a small county-run fruit canning factory that had been out of business for 3 years to set up your Huiyuan Company. Now, your Company has become a leading enterprise in China’s juice beverage industry, fully indicating its almost unparalleled developing speed in the industry. Would you give us your main experiences about “Huiyuan’s Speed”?

Zhu: The speed of an enterprise’s development depends on both internal and external factors. It also applies to Huiyuan’s fast development. Let’s discuss the external factors first.   

A. We’re very lucky to belong to a good age of reforms and opening up to the outside world. China’s reforms and opening up to the outside world have activated a sustained and rapid development of its economy. It has also led to a sustained and rapid development of Huiyuan’s operation. It’s this age that has created Huiyuan’s Speed. We call it “the Right Time”.   

B. Soda water prevailed in China’s beverage market when Huiyuan started its operation. Consumers needed healthcare drinks like fruit juice. Just at that time, the output of fruit was relatively high in China, but the fruit growers had difficulties in selling their fruit. Huiyuan’s operation satisfied the demands of both fruit juice consumption and fruit processing in China, for which it has developed quickly.  

C. Huiyuan’s operation benefits both the nutrition of the people and the life of the fruit growers, so we have got supports from consumers and fruit growers, from dealers and suppliers, and from the governments and trade associations. All these have formed a situation of supports coming in thick and fast.

Main internal factors are as follows: A. Huiyuan has chosen the right project and trade. The trade of juice processing has a perfect future due to the fact that it meets the requirements of the state’s industrial policies and the needs of the society. B. We concentrate on only one thing, that is, fruit juice and juice drinks. We’ll not turn to other things no matter how profitable they are, for we don’t want to distract our attention nor disperse our resources. C. The people from Huiyuan have been carrying on the spirits of diligence, practicality, efficiency and innovativeness. And, D. Huiyuan started its operation from a high technical point by buying the world’s advanced fruit processing and beverage filling lines. Just from that starting point, Huiyuan has led the industry all the way.    

Reporter: Last year, Huiyuan won appraisal from Premier Wen Jiabao and recognition of General Administration of Quality Supervision, Inspection and Quarantine of PRC and FDA for the high quality of juice. Would you tell us about your quality control?

Zhu: We have regarded quality as the basic of Huiyuan’s life and prosperity. We guarantee the quality of our juice from the very beginning. We purchase raw fruit in strict accordance with the standards and flows, none rotten fruit is allowed. We also pay great attention to seeds and seedlings. In our base in the Yangtze Gorges, we have set up the Asia’s biggest nursery center for orange seedlings. With good seeds introduced from USA and Brazil, we nurse about 2 million seedlings every year. We have also set up a large standardized demonstration base of orange.

In addition, we have introduced the world’s advanced fruit processing and beverage filling equipment and technologies. We lead the world with our technologies and techniques including cold-crushing in fruit processing and UHT sterilization and aseptic cold-filling in beverage production. Each batch of our products must go through in-production self-inspection, in-process inspection and final product inspection in succession. On the final products, we conduct not only regular tests but also intensified and compliance tests. And on the warehoused products, we’ll carry out quality verification regularly.  

Reporter: Huiyuan is the first company that has introduced PET aseptic cold-filling in China. Some people think that the high spending on PET aseptic cold-filling equipment will certainly result in the high cost of products made with it. What did you think of this issue at the time of planning to buy it? How has the equipment worked? How profitable has it been? And what a role has it played in the Company’s marketing?

Zhu: High spending on equipment means high cost in depreciation of fixed assets. In this sense, it leads to increased cost of products. But, firstly, we can give high-quality products with expensive equipment. That’s the major reason for which we decided to buy the equipment regardless of the spending. Secondly, it has high capability and efficiency, being capable of filling 36000 500-mL bottles of juice drinks per hour. Thirdly, compared with other packaging types, PET is superior in packaging cost. Taken in this sense, cost is somewhat reduced with the equipment. And, finally, drinks produced by aseptic cold-filling contain no preservatives, which is a highlight in marketing. Just for what’s mentioned above, our drinks in PET bottles have sold very well.

Reporter: What do you think of the three previous CBST? What expectations do you have for CBST 2009 to be held in Shanghai in December, 2009? And what suggestions would you like to make to the participants of CBST 2009?

Zhu: With “High Density, Comprehensiveness, Professional Activities and Professional Visitors” as the goal, the three previous CBST were generally successful. They have boosted the development of beverage makers and the further prosperity of China’s beverage industry.

As to CBST 2009, I hope it can become a platform of gathering, communicating and providing services for the beverage industry, and more people concerned will enthusiastically participate in it. You will blend into the industry, you will learn what you need through communication, and you will get opportunities of success, if you take part in CBST 2009.