Wahaha Group has announced that Hangzhou Intermediate People's Court May 21, 2009 has made the final verdict, dismissed Danone Hangzhou Arbitration Commission on the revocation of the award application. Thus, the Dawa battle on the "Wahaha" trademark ownership issues are settled, "Wahaha" trademark owned by Hangzhou Wahaha Group all. The "Dawa battle" took years, attracted national parties and the general concerns of many businesses, the company finally won the case, to maintain their legal rights and brand reputation, which will enable the company to better perfect the ownership structure, help consolidate the company in the country Food & Beverage Industry leading position, to promote better development of its future.
Hangzhou Wahaha Group Co., Ltd. was founded in 1987, is currently China's largest food and beverage manufacturers, the world's fifth-largest beverage company, with major production Milk drinks , Bottled water, carbonated drinks, tea drinks, juice drinks, canned food, medicine and health care products, Snack Food Seabuckthorn nearly 100 varieties of products, including bottled water, milk beverages, eight-treasure porridge, canned over the years has been ranking first in production and sales. 10 consecutive years has ranked first in China's beverage industry, become China's biggest and most profitable, most potential food and beverage companies. Companies in 2008 Sell Income of 32.5 billion, an increase of about 26%, profits and taxes 6.6 billion, net profit of about 40 billion yuan. The company won the favor of the Danone, was "Wahaha" trademark ownership laws to solve domestic enterprises and foreign shareholders equity, and classic case of operational problems and strategic significance than the economic interests of the company itself, which will encourage companies better improve the ownership structure is conducive to consolidating the company's domestic food and beverage industry leading position, to promote better development of its future.
Dawa trademark battle lasted nearly two years, after two arbitration proceedings twice. Dawa disputes, on the "Wahaha" trademark ownership is one of the two sides a point of contention. In 1996, Danone and Wahaha Group was established five joint ventures, 51% foreign ownership. Since then, the rapid growth of Wahaha, and Danone had a productive session. Data show that up to 10 years, share in dividends 3.077 billion yuan. Meanwhile, Danone Wahaha won with the Chinese bottled water market share of 23%, as China's largest beverage maker. Up to now, including the trademark ownership and noncompete including all the "internal decision" are in favor of Wahaha. It is noteworthy that, at present another with the Wahaha trade mark arbitration, that "the right to use trademark license contract" arbitration is in Beijing China International Economic and Trade Arbitration Commission proceeding. The ruling on the trademark ownership of, or will be "the right to use trademark license contract" arbitration have some positive impact. In addition, Danone in May 2007 to the Arbitration Institute of Stockholm Chamber of Commerce proposed a number of international arbitration application, the prosecution engaged in the same competition Wahaha Group, Danone and other acts of fraud, to stop infringement and to compensate for the joint venture under the age of 39 years loss of profits during the period so. It is reported that the International Court of Arbitration of the Stockholm Chamber of Commerce will be in July 2009 ruled that, the last three years, "Dawa battle" will eventually will be.
Foreign capital to enter China through investment, not simply for financial investment income, their control industrial pattern of strategic intentions clear. Danone entered China 21 years ago, has invested Wahaha, Yili, Robust, Bright , Merlin is wide and, Huiyuan, Mengniu and other Chinese dairy beverage industry of the seven leading enterprises and other enterprises, in 2006 Nearly 10 billion yuan annual sales. Occupy large market share in the same time, Danone to invest in fierce competition with Chinese dairy beverage industry leading enterprise presence Directors, to strengthen the enterprise and throughout the Chinese dairy beverage market control and influence. However, Danone is not simply a financial investment, it has been attempted to controlling the domestic beverage industry giants, but could not obtain a controlling stake in the joint venture, both the chosen exit, such as the typical domestic Dairy Giants Mengniu and Bright.
The company is successful, that Chinese companies can have a strong market position to protect their brand, competition in the market to seek their own justice through the law to protect their legitimate rights and interests. More importantly, the company as a leading domestic food and beverage industry, the strategic significance of winning than the company's own economic interests. Although China is the world's only small share of M & A, but the climax of the next few years will usher in a merger. Also to the economic fundamentals in the market environment is still shallow grown up Chinese companies provided a good example of that era of mergers and acquisitions in the capital, we should know how to legally protect their own interests.