When this regional soda brand welcomed its new captain—former Weilong Delicious CEO Sun Yinong—a transformation led by private equity giant KKR quietly began. This was not merely a personnel change, but a crucial step in Dayao's transition from regional player to national contender. Can this consumer goods veteran lead Dayao through fierce competition to carve out new territory in China's beverage market?
Dayao Soda: From Inner Mongolia to National Legend
For many Inner Mongolia natives, Dayao Soda carries childhood memories. Its predecessor was the Hohhot Bayi Beverage Factory established in 1983, restructured into Dayao Food Factory in 2006. Founder Wang Qingdong carved a path through the 1990s soda market dominated by Coca-Cola and Pepsi through:
Differentiated positioning: Avoiding direct competition with giants by focusing on foodservice channels.
Value strategy: Introducing 520ml large bottles at affordable prices.
These strategies secured Dayao's foothold in Inner Mongolia and northern regions. However, its real breakout began in 2021:
National trend wave: Leveraging the rising "Guochao" consumer movement for brand upgrades.
Slogan: The memorable "Big Soda, Drink Dayao" campaign.
Celebrity endorsement: Signing action star Wu Jing as spokesperson boosted brand recognition.
These marketing moves propelled Dayao's visibility and sales, making it the beverage market's dark horse. By 2022, sales exceeded ¥3 billion. In 2024, Dayao captured 2.42% of China's carbonated beverage market, ranking third.
KKR's Takeover: Strategic Transformation Through Capital
In July 2023, KKR acquired 85% of Dayao, becoming majority shareholder. This marked a new developmental phase:
KKR's investment rationale: Not merely financial investors, but active participants aiming to enhance enterprise value for eventual capital exit.
Management changes: KKR installed Dai Cheng as chairman and recruited Sun Yinong as CEO, demonstrating commitment to transformation.
KKR's entry brought capital and management expertise, along with new challenges—particularly transforming Dayao from regional to national brand.
New CEO Sun Yinong: A Veteran's Path Through Challenges
With over 20 years in FMCG, Sun Yinong carries KKR's expectations. His impressive resume includes:
Coca-Cola: Extensive channel management and operations experience.
Nestlé Yinlu: As CEO, navigated post-acquisition localization.
Weilong Delicious: Successfully led IPO and diversified products for revenue growth.
Analyst Zhang Siyuan notes Sun's experience aligns perfectly with Dayao's needs across three dimensions:
1. Optimizing channel strategy by leveraging Coca-Cola's foodservice expertise
2. Driving product upgrades following Weilong's multi-category approach
3. Accelerating capital preparation with IPO experience
Dayao's Challenges: The Regional Brand Nationalization Dilemma
Despite capital backing and executive talent, Dayao faces significant hurdles:
Market share: While sales outpace regional peers, its single-digit carbonated beverage share pales against Coca-Cola/Pepsi dominance.
Channel dependence: Over 85% sales from foodservice makes it vulnerable as competitors target this space.
Product concentration: Reliance on classic soda comes as carbonated drinks decline (Nielsen IQ shows 2025 market contraction).
Nationalization: Strong regional competitors mirror challenges faced by Bingfeng and Beibingyang during expansion.
Consultancy director Zhang Xinyuan identifies three regional-to-national barriers:
1. Insufficient channel penetration requiring rebuilt distribution networks
2. Brand perception gaps demanding heavy marketing investment
3. Supply chain cost pressures from limited beverage logistics radii
Dayao's Future: New Strategies and Opportunities
Facing these challenges, Dayao pursues multiple breakthroughs:
Omnichannel: Launching canned versions for supermarkets—progress remains limited but directionally correct.
Diversification: Expanding into five beverage categories—carbonated, juice, tea, plant protein, energy drinks—though next star product remains uncertain.
"North Business South Support": Leveraging northern distributors for southern expansion requires localized strategies.
KKR's Capstone Team specializes in post-investment talent optimization—Sun Yinong's appointment injects fresh vitality into Dayao.
Conclusion: The Test of Time and Market
Sun Yinong's channel expertise may strengthen Dayao's systemic capabilities and accelerate capitalization. Yet whether he can break the regional brand curse remains for market and time to decide. Can Dayao emerge from fierce competition as a true national brand? The beverage industry watches closely.
Founded in 1976, KKR—dubbed "Wall Street's wolf"—has invested in over 40 Chinese enterprises including Nanyang Battery, Mengniu Dairy, and Haier. Partner Sun Zheng noted KKR's China strategy evolution since 2018 toward majority-stake acquisitions, typically involving deep operational engagement for value creation before exit.