Go back in time and be a chaebol

Chapter 1190 Strategic Partners (First Update, Please Subscribe)
What is a tropical lifestyle?
People have different experiences about this, and there are many different opinions. But one thing is certain: there must be air conditioning, otherwise this place is definitely not suitable for people to stay.

Early in the morning, Rachel woke up to the cool breeze from the air conditioner. When she woke up, she heard the sound of a shower in the bathroom. It was Ed.

Thinking about the madness of last night, Rachel had to admit that Ed did a great job. It would have been even more perfect if he wasn't black.

But there is nothing to be picky about when it comes to one-night stands. And for Rachel, being with a black man is a challenge to the secular world, just like the battle she launched in her article, which is generally the same - a challenge to traditional values.

So, just make do with it. At this time, Ed had already walked out of the bathroom and smiled at Rachel.

"Rachel, are you hungry? I've ordered breakfast and it will be delivered soon."

As we were talking, there was a knock on the door. It was breakfast time.

When Ed was paying the tip to the waiter, Rachel had already gone to wash up. After bathing, she was wearing a bathrobe. When she came out, she saw Ed holding a cardboard box in his hand and studying something.

"Ed, what are you looking at?"

"This one……"

Ed picked up the paper box in his hand and said:

"Rachel, look, this is milk."

"What? Milk?"

Taking the box from Ed, Rachel felt the coolness in her hand. There were still some water droplets on the box, obviously it had just been taken out of the refrigerator.

“It really seems to be milk.”

Rachel looked at the words printed on the box and asked curiously.

“How do people in Southeast Asia package milk in cartons?”

"And you see, the retention period is more than 6 months!"

"What? 6 months, is this milk or formula?"

Rachel looked at the box in her hand in surprise, her eyes full of disbelief. For a moment, the two worldly-wise people were stunned by this small paper box.

What they don’t know is that this kind of paper box has a history of ten years in Southeast Asia!

In 1947, with the assistance of the United Nations Relief and Rehabilitation Administration and the International Children's Fund, Nanyang began to supply reconstituted milk made from skimmed milk powder to school children for free. As the glass bottles commonly used by people at that time were not suitable for long-distance transportation and storage, and the ever-expanding demand for dairy products, Li Yian thought of the "Tetra Pak" widely used in another world.

So under his guidance, after research by the company's engineers, Nandao Paper produced a waterproof wrapping paper lined with plastic film. Since then, disposable paper bags have come into being. This is the prototype of the "Tetra Pak" - even the name Li Yian directly "plagiarized". Tetra Pak sounds auspicious, auspicious, meaning happy. Such a nice name, of course, can't be given to foreigners.

From the inside out, a Tetra Pak package has a total of 6 layers, which are composed of 75% paperboard, 20% polyethylene and 5% aluminum foil. The six-layer composite paper packaging of the "Tetra Pak" can effectively block air and light, making the consumption of milk and beverages more convenient and safe, and extending the shelf life, achieving higher packaging efficiency.

Although it was invented as early as 7 and patented, no company put it on the market. Instead, a large number of engineers spent years to successfully develop a perfect production line of aseptic processing, canning and packaging technology and put it into use.

It was not until 1957 that the first batch of milk packaged in Tetra Pak was launched. Although its shelf life was as long as half a year, the market was not large. After all, bottled milk was still the main product on the market, and its cost was relatively high. Despite this, it was still gradually expanding the market.

As a new product, it takes time for the market to accept it. As its inventor, Li Yian knows better than anyone how broad its market is.

It is this humble beverage box that enables Tetra Pak to sell 1670 billion boxes every year, provide 756 billion liters of liquid food to the world, have more than 2 employees worldwide, and generate a net income of 104 billion euros per year!
Therefore, small products can not only make life more convenient, but also bring huge profits.

And this Olympics is the best time to promote "Tetra Pak". In the Olympic Village and the Olympic Building, athletes from all countries are provided with milk and juice in "Tetra Pak". It's just so strange because they have almost never enjoyed the official meals.

"This square paper box should be easy to transport."

Although she was not a businessman, Rachel saw its merits at a glance, and having been in the country for the last few years, she also noticed its advantages.

"In the past, farm milk could only be sold in nearby cities, or made into milk powder and shipped to cities to be made into reconstituted milk. But it can deliver fresh milk to thousands of households. After all, its shelf life is as long as half a year!"

I have to say that even as an animal expert, Rachel still saw its advantages at a glance. In fact, many people saw the advantages, but those who saw the advantages did not necessarily take action.

Of course, not everyone stopped there. Almost the moment Miles Clark saw Tetra Pak milk in the supermarket, he discovered a business opportunity, so he immediately looked for the manufacturer of Tetra Pak.

Although it took some twists and turns, he finally found Nanhai Paper, the largest paper company in Southeast Asia. As soon as he entered the company, he stated his purpose directly.

"Manager Liang, this is my business card. I'm from Minnesota, USA. I own a local milk company that specializes in supplying fresh milk to the city..."

While introducing his company, Miles emphasized his advantages, which were actually the advantages of Minnesota. The state is the most important milk producing area in the United States, but what does this have to do with him?

However, for Miles, this is not important. What is important is that he needs to convince the other party that he has the ability to sell milk to the whole United States. Of course, this also means that he will need more raw materials. "In American cities, about 60% of people can only drink reconstituted milk made from milk powder because there are not enough cattle farms near the city to provide enough fresh milk. But your "Tetra Pak" has changed everything. With it, all Americans will drink fresh milk, and of course all Americans will use your products."

Listening to Miles' emphasis, Liang Yong smiled without saying anything and just flipped through the other party's report. It was obvious that this guy had put a lot of thought into it. Americans are arrogant. When dealing with them, many of their business reports are written in English. The same is true when dealing with foreigners, but the other party brought a report in Mandarin.

Well, this is the correct positioning!
In fact, in order to promote Tetra Pak, the company is now looking for partners in Europe and the United States. However, there are too many milk producers in Europe and the United States. Because fresh milk is mainly packaged in traditional glass bottles and cans, the short shelf life makes the sales radius of local milk brands limited, making it difficult to expand to more distant areas and enterprises difficult to expand. This has also led to the market being flooded with small brands that are produced and sold locally.

It is not easy to choose partners among these companies. Now that someone has come to us on their own initiative, it is a good choice for the company.

After thinking for a while, Liang Yong looked at Miles and said:
"Mr. Clark, we welcome cooperation with you in milk production, but according to reports, your company only sells 4000 tons of milk a year, which means your capital is very limited. The price of the production line for aseptic processing, canning, and packaging required by Tetra Pak is very expensive. Even at the best offer, it will cost 780 million US dollars!"

Sure enough, when Max heard the "offer of 780 million US dollars", he was completely stunned. He couldn't even believe his ears. As a former navy officer, he said instinctively.

"Oh my God! This is more expensive than a warship. A low-temperature milk production line is not even a fraction of it."

This price is really not cheap. Even now, 780 million is enough to buy a warship, but this is technology.

Facing his surprise, Liang Yong said:
"Low-temperature milk requires cold chain transportation, which is not only expensive, but also well known that it requires refrigerated trucks at every stage. Even so, the shelf life is very short, only a few days of freshness. In this case, once an accident occurs on the road, the milk will deteriorate and become a pile of waste.

In contrast, Tetra Pak can directly load milk onto trains, cars, and cargo ships to be shipped all over the world. According to our tests, its shelf life can reach 10 months! As for the price... New technology is always very expensive. Moreover, this is not just new technology, but also a black technology that changes history. There must be a reason for its high price. With it, your milk can not only be sold to New York and Los Angeles, but also to Europe! You will become the largest milk merchant in the United States!"

Become the largest milk merchant in the United States!
Max was silent in the face of such temptation. This kind of temptation was irresistible to everyone. He thought for a while and then said:

"You know, even if I mortgage my farm and company to the bank, I can only raise a few million dollars at most. Eight million dollars... This is really not something I can afford."

It may even cost tens of millions of dollars, and you also need to purchase packaging and build new factories, all of which require money.

Just when Max wanted to give up, he heard Liang Yong say.

"Mr. Clark, you are very lucky because you came at the right time. Just a few weeks ago, our company just passed the Strategic Partner Program."

Max asked curiously:

“Strategic Partner Program.”

"Yes, it is the 'Strategic Partner Program'. We will provide equipment to our partners in a cooperative model."

Liang Yong continued to introduce:
"This cooperation model is that you only need to pay 20% of the equipment fee to obtain the filling production line in a leased form, and in the next five years, you can offset the remaining 80% of the equipment fee by ordering a certain amount of Tetra Pak packaging paper every year. After five years, the equipment will be completely yours."

In fact, this is another world, Tetra Pak’s business routine.

In the fiercely competitive dairy market, paying 80% less in costs allows companies to have more funds to invest in product promotion. Therefore, this model has made Tetra Pak the first choice for cooperation with other dairy companies, and its market share has expanded rapidly.

Later, Tetra Pak even gave away equipment worth tens of millions of yuan to enterprises for free, and then made money from packaging materials. However, this actually posed a huge risk, that is, if the enterprise was poorly managed or closed down, the subsequent fees could not be recovered, which would lead to a large number of bad debts.

Therefore, at the suggestion of Li Yian, they switched to the "rental" method. Even if the company went bankrupt, at least the equipment could be recovered and then "rented" to another company.

Of course, free things are the most expensive, and all the necessary routines must be used.

Hearing this, Max began to think in his mind that he could use the 80% of the funds to promote products or for other investments. However, as a businessman, he was keenly aware that there must be other conditions.

"Are there any other conditions besides this?"

"Of course!"

Liang Yong smiled and said:

"We have only one request: you must buy packaging materials from Nanhai Paper, otherwise we will stop selling them to you."

Faced with this request, Max was stunned at first, then smiled:

"Sir, I think you know very well that you are the only supplier in the world, so of course I can only use your products."

“Indeed, but this is exactly what “strategic partnership” means. We hope to have long-term and permanent cooperation with all our partners!”

Liang Yong smiled and said:

“The only question now is – Mr. Clark, are you willing to become our strategic partner?”

(End of this chapter)