Traditional Chinese herbal tea producer Guangzhou Wanglaoji Pharmaceutical Co Ltd announced plans to work with the United States-based science and technology major DuPont to launch probiotic products-which have bacteria and yeast that are good for health, especially the digestive system, to tap growing market demand…Full Article: Mar 2017

Key Points

  • The primary target consumer for the new probiotic beverages will be children under 12 years of age.
  • By 2020, according to the Deputy General Manager of Wanglaoji, China’s probiotic market will reach approximately CNY 85 billion (~US$12.3 billion).

ChinaAg Comments

  • The feud between Guangzhou Pharmaceutical Holdings (GPH) and Hong Kong-based JiaDuoBao (JDB) is primarily over Wong Lo Kat, an herbal drink that Guangzhou Pharmaceutical licensed to JDB in from 1995 to 2010. After the expiration of JDB’s lease of GPH’s Wong Lo Kat brand in 2010, JDB reportedly bribed GPH staff to illegally extend the lease. In 2011, Guangzhou Pharmaceutical won a lawsuit retaining the rights to the trademark, causing JDB to launch a new trademark (JiaDuoBao) to replace Wong Lo Kat.
  • In early December 2015, a Guangdong court ruled that JiaDuoBao had to pay CNY 10 million (~US$1.5 million) to Guangzhou Pharmaceutical Holdings over fake advertisements. Over the past few years, there have been at least 15 GPH-JDB lawsuits that have spanned fake advertisements, trademark infringements, and unfair competition cases.
  • In March 2013, GPH and JDB reportedly called a truce. Instead, both companies stated they would focus on product development.
  • In 2012, JiaDuoBao (aka JDB) had a 73% market share of China’s herbal canned tea market and was followed by Guangzhou Wanglaoji Pharmaceutical (aka GPH) at 8.9%, HeQiZheng at 4.3%, and BaoQingTang at 0.5%.
  • Founded in 1828 and headquartered in Guangzhou, Guangdong Province, Guangzhou Wanglaoji Pharmaceutical (GPH) produces and distributes herbal medicine and care health products including various herbal tea beverages. Its most famous product line is its Wanglaoji Herbal Tea beverages.

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