The rise and fall of Yiquanyong

In 1916, Shanxi Fenyang Xinghua Village Fenjiu (White Yulu Wine) won the first-class gold medal at the Panama International Exposition. The news spread back to China, causing great shock. If we can continue to promote and expand production at this time, the profits will be huge. However, expanding production requires funds. If the government does not come forward to support, things will be difficult to handle. At that time, Yang Dering, manager of Xinghua Village Yiquanyong, a manufacturer of Baiyulu wine, went to the province and proposed that the provincial government provide 100,000 yuan in public shares as a fund to develop the production and sales of Fenjiu. Fen Liquor should not be sold as it is produced. It must be stored for at least three years before being sold, so that its color, aroma and taste can remain first-class. Therefore, the investment amount must be large. As a result, Cui, the director of Yan Xishan's Six Political Assessment Office, did not agree to withdraw the money. He only agreed to provide one year of funds for turnover, and also proposed that the public monopolize sales. The joint venture was shelved. At that time, several far-sighted gentry and businessmen seized this opportunity to engage in private equity raising with manager Yang Dering, and finally raised 2,500 yuan in shares. Yi Quanyong invested in Fenjiu and also subscribed for 2,500 yuan. Yuan Dynasty, established Jinyu Fenjiu Co., Ltd. and quickly expanded production. Fenjiu brewed by Yiquanyong completely adopts traditional methods and has strict process requirements. The resulting wine is clear, fragrant and mellow. The collaboration continued for seven years. Later, Yiquanyong and the fund-raising company Jinyu Company had conflicts over the adjustment of ex-factory prices and retail prices, and the two companies separated. Yiquanyong decided not to supply Fenjiu from Jinyu Company. Unexpectedly, this move did not work, and Yiquanyong was divided internally. Manager Yang Dering was squeezed out by his own people, and in anger, he brought two shopkeepers, two clerks and a technician (almost half of Yiquanyong's staff). He was appointed as the manager of Jinyu Company. This act of betrayal caused Yiquanyong to collapse. Coupled with the establishment of Jinyu Company and the seven-year joint venture, consumers only know Jinyu but not Yiquanyong. Yiquanyong's independence is tantamount to transferring intangible assets such as reputation and popularity to Jinyu Company at the same time. Coupled with outdated management methods, in 1932, the factory was finally sold to Jinyu Company for 9,600 yuan. The historical sites Shenming Pavilion, ancient wells and signboards, real estate and all production processes it occupies are all owned by Jinyu. Since the 25th year of the reign of Emperor Guangxu of the Qing Dynasty (AD 1899), Yiquan Swimming has ended at this time.

Jinyu Company finally caught up with the trend of the times. A new accounting system was adopted in operations, soju bottom pots riveted with steel plates were used in production, and a wage system was adopted in distribution. A series of reforms greatly improved economic efficiency and began its own golden age, with shareholders reaping huge profits.

The new management and high profits have tempted the company to change the old sales rules of Yiquanyong: when production and sales are in short supply, they often buy Fenjiu from Dehoucheng, another hotel in Xinghua Village, and sell it under a new brand. The so-called "three-year-old wine will not be sold if it is not old" has become a myth. Only when participating in exhibitions, competitions or winning over some dignitaries, some truly old wines are produced. The so-called old wine is just a supplement mixed with 30% to 20% of new wine. I'm in a hurry, and I won't pay it back at all. Once, the Beijing Business Conference sent a special person to Xinghua Village to buy a dozen of wine that was more than five years old. The shopkeeper entertained the guests with a happy face and sold 12 bottles to the guests at a price six times higher than the market price. In fact, anything over five years is just old wine that has been stored for one year. This also shows that profiteers in the old society were smooth and sophisticated.

Looking at the rise and fall of Yiquanyong, from a congenital point of view, there is no support from the government, financial resources are weak, and it is difficult to turn around; from an acquired point of view, internal strife and discord will destroy the Great Wall. In the end, it was a pity that the world-renowned time-honored Fenjiu, the "unfamous name", fell into the hands of others, while Yi Quanyong himself passed away prematurely.