Becoming Rich with Daily Scavenging APP-Chapter 671: Using Another’s Resources for One’s Own Gain

Fresh beer, in the simplest and most straightforward terms, means freshly brewed beer.

Beer is something that tastes better the fresher it is, which is pretty much a consensus among those who enjoy drinking it.

But on the market, the main beer that can be stored for a long time is pasteurized beer.

Because although everyone knows that fresh beer tastes better, it has a serious problem: a short shelf life.

This is because the natural yeast and active amino acids in fresh wort spoil easily and need to be consumed promptly.

In contrast, pasteurized beer can be stored for several months or even a year.

Fresh beer is best consumed within a few days, or even within 24 hours.

So, if you don't want to go to a bar and just want to find a place near home to buy fresh beer, you'll find it impossible.

All the beer in stores is pasteurized beer that can be stored for a long time.

But for Kuxing, this doesn't seem to be an issue.

This is because Kuxing currently takes pride in its logistics system, which is also the most competitive compared to its peers.

In fact, Kuxing not only benefits from its own logistics system.

As a company within the Yiyang System, Yiyang Flash Sale's strong logistics system can also support Kuxing.

The logistics system that Chen Yiyang invested heavily in previously is now the foundation for Yiyang System's enterprises to compete in the market.

Many of the raw materials in Kuxing's beverages are strictly prohibited from being used the next day.

These raw materials are delivered daily from the central warehouse to each store for use.

Anything left unused by the end of the day is destroyed, and a fresh batch is delivered the next day.

This powerful logistics system and supply chain can also be applied to fresh beer.

Since fresh beer has a short shelf life, brew it on the day, deliver it on the day, and sell it on the day.

Any unsold inventory is returned for destruction after closing, and a new batch is delivered the next day.

Industrial methods and an efficient supply chain.

This approach can allow fresh beer that could only be bought at high prices in bars to be sold at a relatively affordable price to consumers.

After discussing with Jiang City,

Jiang City expressed that these are the reasons why he thought Kuxing should engage in the fresh beer business.

"Compared to the coffee and milk tea sectors that are already extremely competitive,

fresh beer has a higher profit margin and a more imaginative price point per customer.

Furthermore, the audience for fresh beer is not limited to young people; many middle-aged and elderly people are also our customers.

For example, in cities known as beer capitals. Many middle-aged and elderly people in these cities love to buy bulk beer from street vendors, taking it home in plastic bags to drink.

But if we enter this business and reduce costs through a unified supply chain and logistics system,

even with the packaging of fresh beer, our costs will be lower than bulk beer.

In other words, our product will look better, be of higher quality, and have a lower price.

Moreover, beer consumption has strong social and nighttime attributes.

In the evenings, many young people worry that drinking milk tea will make them gain weight and drinking coffee will keep them awake.

But there are no such concerns with fresh beer. Instead, when a few people drink fresh beer together in the evening, they tend to drink more."

Jiang City's words made a lot of sense.

With milk tea and coffee, at most one person drinks one cup.

But when it comes to beer, once you start, one person might drink five or six bottles in one night.

The profit in that is substantial.

"Moreover," Jiang City continued listing the advantages of Kuxing entering the fresh beer business,

"the fruit juice and syrup used in milk tea and coffee are also needed for some fruit-flavored fresh beers.

Furthermore, the cold chain used for milk tea and coffee can also be applied to fresh beer.

And our procurement planning is already very mature; if we enter the beer industry, we can procure barley and hops at a very low cost.

The prices we can achieve would be not only lower than bar prices but even lower than many retail stores' canned beers and street-sold bulk beers."

"Let's do it then." After Jiang City's explanation, Chen Yiyang had confirmed that this business was viable.

"You take charge of this matter, and I'll handle the funding.

We'll set up an independent fresh beer brand, leveraging the logistics systems of Kuxing and Yiyang Flash Sale to pilot in some direct-sale stores in first- and second-tier cities."

"Not using Kuxing's brand?" Jiang City was a bit surprised.

"Use Kuxing's promotional channels, but not Kuxing's brand,"

Chen Yiyang stated, "The new fresh beer brand will be called Fulu Fresh Beer.

I'll take 80% of the shares, and the remaining 20% can be bought by Kuxing's current main executives and some executives from Yiyang Flash Sale."

What Chen Yiyang said sounded somewhat puzzling at first.

How could they create a beer brand using Kuxing's logistics, promotional channels, and likely its bulk purchasing channels for raw materials?

But why doesn't Kuxing own any shares in this brand?

However, Jiang City, being an old fox in the business world for a long time, quickly grasped Chen Yiyang's plan.

It's about using others' resources to lay golden eggs.

Chen Yiyang also figured out this method after dealing with Zhou Hongyi previously.

He now has complete control over Kuxing.

He can entirely make Kuxing work for this new brand for free, allowing the new brand to profit from Kuxing's resources without sharing the dividends with Kuxing.

Of course, this approach in the early stages of Fulu Fresh Beer's growth won't concern shareholders looking to Kuxing for dividend profits.

They don't want to anger Chen Yiyang over this matter.

But if Fulu Fresh Beer grows rapidly and indeed becomes the important second profit growth point for a large beverage enterprise as Jiang City envisioned,

Kuxing's original shareholders might not be able to accept it.

At the same time, having Fulu Fresh Beer perpetually free-ride on Kuxing's channels is not a long-term solution.

In the end, Fulu Fresh Beer must return under Kuxing's umbrella.

But by then, Fulu Fresh Beer will have demonstrated its value, and Chen Yiyang can have Kuxing and Yiyang Flash Sale appraise a high price for acquiring part of Fulu Fresh Beer's shares.

In this transaction, Chen Yiyang, along with all the Kuxing and Yiyang Flash Sale executives holding shares in Fulu Fresh Beer, can profit.

Chen Yiyang essentially uses collective funds to buy the loyalty of the two companies' executives, giving them benefits.

At the same time, he also makes a profit himself. 𝗳𝚛𝚎𝚎𝘄𝕖𝕓𝕟𝕠𝚟𝚎𝕝.𝗰𝕠𝐦

This is a typical tactic used by capitalists.

So Jiang City quickly realized this.

Moreover, Chen Yiyang is very generous by involving the executives of both companies in this venture.

"Thank you, Mr. Chen," Jiang City quickly thanked Chen Yiyang.

Kuxing has only improved in the past two years, so Jiang City and the other executives' salaries and dividends have not been high.

Now Chen Yiyang is essentially giving them money in a different form.

After this operation, each of them will be able to pocket several million in cash revenue.