From soda to pop to distilled water

Lucky Cola in the 1980s.

From drinks to water

In the late 1980s, the entry of international drinks brands into China eroded Zheng Guang He's market dominance, and the company entered its darkest days.

During this low point, Aquarius noticed numerous complaints about the quality of tap water in Shanghai, and decided to shift its focus to drinking water.

In 1995, Shanghai Aquarius Drinking Water Co Ltd was founded, becoming one of the nation's first providers of drinking water in large containers. Home delivery again followed.

"We did some research among consumers about how much they would like to spend on water each day, and the conclusion was 2 yuan (32 cents) per day. That's why a 19-liter container of water, which can supply a three-member family for one week on average, is priced at 14 yuan," says Zhao.

The company is still focusing on the production and sale of drinking water, but it now produces a range of products including natural mineral water, spring water, purified water and distilled water, which come in 19-liter containers, 11.3-l containers, 550-ml bottles and 350-mililiter bottles.

Currently, about 50 to 60 percent of the company's revenue is generated from pure water, between 30 and 40 percent comes from mineral water, and about 10 percent is from soda water and other water products.

Zheng Guang He is exploiting its expertise in potable water and is now looking overseas for water sources. One of the latest plans is to launch Alaska glacier water by the end of this year, according to Zhao.