Xu Shihui: Architect of Dali Foods Group’s Rise to Prominence

Xu Shihui’s journey from humble beginnings in the cookie business to becoming the chairman of one of China’s leading snack and beverage companies, Dali Foods Group, is a testament to his visionary leadership and entrepreneurial acumen. Under his stewardship, Dali Foods grew into a household name in China, renowned for its popular brands such as Copico potato chips, Heqizheng herbal tea, and Haochidian soda crackers. His decisions over the years have not only transformed the company but also reshaped the landscape of the Chinese food and beverage industry.

Xu Shihui began his career in the food business by focusing on cookies, a segment that gave him the foundation to understand consumer preferences and market dynamics. Recognizing the potential for diversification, Xu gradually expanded Dali Foods’ product offerings, ensuring that the company remained relevant in an increasingly competitive market. His focus on innovation and branding helped Dali carve a niche in the snack and beverage segment, making it a staple in millions of Chinese households.

The company’s rise to prominence was marked by the introduction of some of its most iconic products. Copico potato chips became a hit among consumers, gaining a reputation for their distinctive flavors and quality. Heqizheng herbal tea capitalized on the Chinese market’s demand for healthy and traditional beverages, while Haochidian soda crackers earned a loyal following due to their taste and versatility. These products established Dali Foods as a leader in the market, allowing the company to compete with international giants.

In 2015, Xu took a significant step by listing Dali Foods Group on the Hong Kong Stock Exchange. The IPO was a major milestone, raising substantial capital and positioning the company as a global player. However, the public listing brought its own set of challenges. Despite the initial success, Xu expressed dissatisfaction with the company’s share performance over time. He believed that the stock market undervalued Dali Foods, failing to reflect its true potential and market position.

Citing these reasons, Xu made the bold decision to take Dali Foods private in 2023. The privatization deal, valued at $6.6 billion, marked another turning point in the company’s history. By delisting from the Hong Kong Stock Exchange, Xu aimed to regain control and implement strategic changes without the pressure of meeting short-term investor expectations. This move highlighted his commitment to the long-term vision for Dali Foods, ensuring that the company could continue to innovate and grow under his direct guidance.

Xu’s leadership philosophy is rooted in a deep understanding of the Chinese market and an unwavering focus on quality and consumer satisfaction. His ability to identify emerging trends and adapt to changing consumer preferences has been a key factor in Dali Foods’ success. Whether it was the rise of health-conscious consumers or the growing demand for affordable yet high-quality snacks, Xu ensured that Dali Foods stayed ahead of the curve.

Family plays an integral role in Xu’s life and business. His daughter, Xu Yangyang, is a vice president and executive director at Dali Foods Group. She has been instrumental in shaping the company’s operations and strategies, carrying forward her father’s legacy with a modern perspective. The father-daughter duo exemplifies the synergy of traditional business values and contemporary innovation, ensuring that Dali Foods remains a dynamic and forward-thinking organization.

Xu’s decision to focus on privately held operations post-2023 also underscores his dedication to fostering sustainable growth. By stepping away from the constraints of a publicly traded company, he aims to explore new opportunities, invest in research and development, and expand Dali Foods’ footprint in international markets. The move allows for greater flexibility and responsiveness, which are crucial in the fast-paced food and beverage industry.

Beyond his business achievements, Xu Shihui’s story is also a reflection of the broader transformation of China’s economy. His journey from starting a cookie business to leading a multibillion-dollar empire mirrors the rapid industrialization and globalization of Chinese enterprises. Entrepreneurs like Xu have played a pivotal role in putting China on the global business map, demonstrating that Chinese companies can compete and thrive on the world stage.

As Dali Foods continues to evolve, its future remains closely tied to Xu’s vision and leadership. His ability to balance tradition with innovation, coupled with a keen understanding of market dynamics, ensures that the company will remain a significant player in the snack and beverage industry. Whether through introducing new products, exploring global markets, or adapting to changing consumer needs, Xu Shihui’s influence will continue to shape the trajectory of Dali Foods Group for years to come.