A new round in the battle for dominance in the herbal drink market has started between Hong Kong-based JDB and a mainland firm, following their dispute over the ownership of the Wong Lo Kat brand.
Guangzhou Pharmaceutical said yesterday it planned to sell Wong Lo Kat drinks in their familiar red cans on the mainland from next month.
Its sales target is 30 billion yuan (HK$36.66 billion) in five years.
The state-owned company unveiled its strategy after the China International Economic and Trade Arbitration Commission ruled this month that a contract allowing JDB to use the brand was invalid.
Wong Lo Kat, known as Wang Lao Ji in Putonghua, is the best-selling brand of canned drinks on the mainland, with a brand value of about 108 billion yuan.
Guangzhou Pharmaceutical owns the brand of traditional Chinese herbal drinks that originated in Guangdong 130 years ago.
The firm signed two trademark licensing contracts with JDB between 1997 and 2000, allowing the Hong Kong firm to make and sell products under the brand until May 2010.