The reason for the defeat of Maxwell Coffee in China which is good and affordable, Maxwell or Nestle?

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The Maxwell Coffee Factory in Dongji Industrial Park, Huangpu District, Guangzhou, was closed at the end of December 16. Brand ownership company Jacobs DouweEgberts (hereinafter referred to as JDE) said that from 2017, the market in Greater China will be supplied by the production base in Bangkok, Thailand, and the Guangzhou plant in China will no longer produce.

"Today (21st) I am the only one to go to work, and I will return to work on the 23rd." When the security personnel consulted the operation of the company, he said he did not know the specific reasons for the holiday. The company will continue to operate for several months, but has given notice to close the plant by the end of this year, the person said. "our contract is up to March next year, and it is not clear what to do next. The company now has more than 100 employees."

JDE confirmed that in order to help the company achieve business growth in Asia and to establish a strong supply base for the growing Chinese market, the company took the opportunity to evaluate the Asian supply network, and the Guangzhou plant has been out of production since 2017. However, the person did not reply to Maxwell's specific sales in the Chinese market.

"Maxwell has basically withdrawn from the Chinese market, and the factory is definitely going to be closed." Zhu Danpeng, a researcher at the China Brand Research Institute, said that since 2002, Maxwell Coffee has been in a maintenance operation in the Chinese market, with less and less market share, and less than 10% of the instant coffee market in China.

Zhu Danpeng believes that from the perspective of the global market, there is a big gap between Maxwell Coffee's share and Nestle Coffee, which ranks first in the market. From the perspective of cost operation, non-performing assets and excess capacity must be stripped off to ensure the normal level.

What do netizens say:

More and more people choose to drink freshly ground coffee at home.

So-what-tm: it's still Nestl é.

ZUI_: instant coffee business is no longer possible to grow in the world, is it?

Dorota Tree: the promotion of du Lala! The memory of a generation.

Zbond: now I basically give priority to Nestl é gold medal and UCC, the latter is excruciatingly cost-effective, no matter how bad it is, it has to be mellow. Who would drink three-in-one milk instant solution when they are used to it?

HunterKeung: Hainan Coffee is going to win glory for our country!