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Lao Gan Ma: The Story of China’s Most Spicy Godmother Tao Huabi

China’s ‘Old Godmother’ Tao Huabi, creator of Lao Gan Ma, is China’s hottest businesswoman.

Manya Koetse

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She is China’s ‘Old Godmother’: Tao Huabi (陶华碧) is the creator of one of China’s most famous chili sauces and is the embodiment of the ‘Chinese dream.’ By following her own path and relying on her business instinct, Tao rose from poverty and became a multi-billionaire. China’s spiciest businesswomen has now quietly retired.

‘Old Godmother’ (Lao Gan Ma) is a household name in China. Anyone who frequents Chinese restaurants or supermarkets is familiar with the brand of chili sauces that is made in China since the 1990s – known for the little portrait of a Chinese woman on its label.

That woman is Tao Huabi (陶华碧), who did not only develop the famous chili sauce, but also became the founder and CEO of the privately owned ‘Lao Gan Ma Foodstuff Company’ (老干妈风味食品有限责任公司). The company was established in south-central China’s Guiyang, Guizhou Province, in 1997.

On February 14 2017, Tao Huabi hit the top trending lists on Chinese social media with the hashtag “The Spiciest [Feistiest] Woman of China” (#曾经中国最火辣的女人), when several Chinese media reported that Tao Huabi had already quietly retired from her company in 2014 and that she is no longer a stockholder of the Lao Gan Ma brand.

 

ROUGH START IN LIFE

“The noodle shop business soon flourished – but not because of her noodles.”

 

With her journey from extreme poverty to ultimate wealth (she is even included in the Forbes list of China’s richest), Tao Huabi’s story reads like a novel.

Tao was born in 1947 in a remote mountain village in Zun’yi, Guizhou province. Since her family was too poor to send her to school, Tao was not taught how to read and write. When Tao was 20 years old, she married a local geologist and had two sons.

When her husband fell ill, Tao Huabi unexpectedly became widowed within a few years after she got married. She was forced to work outside the village to provide for her family; Tao worked around the clock to make rice tofu at night, which she sold at schools during the day.

In 1989, Tao set up a small noodle shop in the Nanming District of Guiyang. Although she just served simple noodles, she mixed them with her own spicy hot sauce with soybeans (豆豉麻辣酱). Tao was beloved in the neighborhood, where she became a ‘godmother’ to poor students which she would always give discount and some extra food.

With many local students and patrons visiting her little diner, the noodle shop business soon flourished – but not because of her noodles.

Tao Huabi discovered the popularity of her condiment when customers came in to purchase the sauce without the noodles. One day, when her sauce had sold out, she found that customers would not even eat her noodles without her special sauce.

When Tao learned that other noodle shops in the neighborhood were all doing good business by using her home-made sauce in their noodles, she realized the potential of her product.

 

FROM NOODLE SHOP TO CHILI SAUCE FACTORY

“At the age of 49, Tao took the plunge and set up her own sauce factory called ‘Old Godmother.'”

 

By the early 1990s, more truck drivers passed by Tao’s shop due to the construction of a new highway in the area. Tao took this as a chance to promote her condiments outside the realm of her own neighborhood and started giving out her sauces for free for the truckers to take home.

This form of word-of-mouth marketing soon paid off when people from outside the city district came to visit Tao’s shop to buy her chili sauces and other condiments.

By 1994, she had stopped selling noodles and had turned her little restaurant into a sauce shop. Two years later, at the age of 49, Tao took the plunge to rent a house in Guiyang, recruited 40 workers, and set up her own sauce factory called ‘Old Godmother’: ‘Lao Gan Ma‘ (老干妈). In 1997, the company was officially listed and open for business.

Although the Lao Gan Ma brand became successful almost immediately, Tao Huabi still struggled for years as a handful of competitors launched fake Lao Gan Ma sauces with similar packaging, and nearly ruined her business.

In 2001, when Tao Huabi was 54, the high court in Beijing finally ruled that other similar products could not use the “Lao Gan Ma” name nor imitate her packages. She received 400,000 RMB in compensation (±60,000$). Twelve years later, her company had an annual sales volume of 540 million US$ (3.7 billion RMB).

 

“THE MIRACLE OF GUIZHOU”

“Tao was included in the Forbes list richest families in China with an estimated worth of $1.05 billion.”

 

By now, Tao’s ‘chili empire’ has gone international, as her condiments are sold from the USA to Africa. She is known as the “Miracle of Guizhou.” Despite the many offers she had throughout her career to set up her business elsewhere, she always stayed true to her home-province – much to the delight of local government officials who have continuously shown their support for Tao.

The businesswoman is a true blessing for the province; not just because her brand has become known as a unique ‘product of Guizhou’, but mainly because she offers employment to 4100 people, and directly and indirectly generates income for ten-thousands of farmers.

Lao Gan Ma is by far the largest chili brand of China, with over 20 differently-flavored condiments.

In 2015, Tao was included in the Forbes list of richest families in China with an estimated worth of $1.05 billion.

Besides that Tao, now 70 years old, allegedly loves driving cars (she owns two Rolls-Royces, a Mercedez-Benz and a BMW), she is also politically active and has become a committee member of the People’s Congress at the provincial level.

According to the latest Chinese media reports, Tao Huabi has quietly retired in 2014, which was unknown to the public. She and her youngest son Li Hui (李辉) are no longer on the list of shareholders. Her oldest son Li Guishan (李贵山), however, is still a company shareholder.

“Somehow this makes me a bit emotional,” some Weibo commenters said.

“I just hope the quality will remain as good as ever,” some netizens responded on Weibo. “As a kid I always thought there was drugs in this sauce because it was so addictive.”

Others praised her life story, saying: “Old Godmother is an example that you can still make it in life without any education.”

“We actually have a lot of women here in Guizhou who can make their own delicious chili sauce,” another netizen wrote: “But of course, Old Godmother’s hot sauce is delicious and has its own characteristics. And in the era of Old Godmother, there were very few people who would rely on chili sauce to make a living. She has persisted and kept her prices low.”

A bottle of Lao Gan Ma is generally sold at around 8-10 RMB (±1-1,5US$). Overseas, prices vary from 8$ to 15$.

“Every great business person has to retire one day,” one commenter writes: “That does not diminish her legendary successful career!”

Others are surprised to find such a life story behind the Lan Gao Ma product: “Who knew our Old Godmother was such a fascinating person?”

– By Manya Koetse
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Sources and Further Reading

Baidu Page Tao Huabi (in Chinese): http://baike.baidu.com/view/117848.htm#reference-[1]-117848-wrap.

Phoenix News (in Chinese) http://finance.ifeng.com/a/20151202/14103739_0.shtml

Sina News (in Chinese) https://zx.sina.cn/n/2017-02-14/zx-ifyamkzq1302308.d.html

Sina Video (in Chinese) http://video.sina.com.cn/p/news/o/doc/2017-02-13/112965694793.html?wm=3049_0022&from=qudao

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©2017 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com

Manya Koetse is the editor-in-chief of www.whatsonweibo.com. She is a writer and consultant (Sinologist, MPhil) on social trends in China, with a focus on social media and digital developments, popular culture, and gender issues. Contact at manya@whatsonweibo.com, or follow on Twitter.

China Food & Drinks

Spicy Sauce Scam Goes Viral – Tencent Duped by Fake Lao Gan Ma Deal

The bizarre story that went trending this week involves China’s tech giant Tencent and China’s undisputed sauce queen Lao Gan Ma.

Manya Koetse

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The super popular Chinese chilli sauce brand Lao Gan Ma has been all the talk on Chinese social media this week since a somewhat bizarre incident occurred where the world of tech scams and spicy sauce collided.

News came out earlier this week that Chinese tech giant Tencent sued Lao Gan Ma over a contract dispute for failing to pay the advertising fees for their online platforms. The case led to an initial Shenzhen court ruling requiring Lao Gan Ma to freeze 16.24 million yuan ($2.3 million) worth of assets.

According to Chinese state media outlet Global Times, Tencent claimed it had signed a marketing contract with the famous chilli brand in March of last year, and has since delivered marketing promotions worth of tens of millions yuan without receiving payment.

Lao Gan Ma, however, denied ever signing this contract with Tencent and reported the matter to police.

It then turned out that Tencent had actually signed the marketing cooperation with imposters pretending to represent the chilli manufacturer, and had actually been cheated.

Meanwhile, the hashtag “CCTV Investigates the Lao Gan Ma Suitcase” (#央视调查腾讯老干妈诉讼事件#) received over 400 million views on social media platform Weibo.

The imposters’ goal allegedly was to obtain the online game package codes that are part of Tencent’s promotional activities, in order to resell them online.

On July 1st, Guiyang police released a statement on Weibo saying they had arrested three people in the fraud case; a 36-year old man, and two women aged 40 and 36. The topic became trending on Weibo (#警方通报3人伪造老干妈印章签合同#), receiving 190 million views.

On social media, many netizens wonder how a big company such as Tencent – one of China’s biggest internet giants – could fall for such a scam.

“Even I know that Laoganma doesn’t need advertisement to promote its products,” some commenters wrote.

“Wouldn’t such a business deal actually require them to meet?”, others wonder.

Other people express their anger at Tencent, demanding an apology from the company for suing their beloved chilli sauce brand.

But the majority of people think the matter is somewhat hilarious, ridiculing Tencent – that has a penguin as its main logo – for getting caught up in such an embarrassing scam. Dozens of memes circulating on Weibo make fun of the company for being so stupid and naive.

The Tencent penguin: deceived, used, and ridiculed.

The Tencent company joined the meme machine to also ridicule itself, asking Chinese netizens for information that could prevent them from falling for such a scam in the future. As a reward, the company writes, they will give away thousand jars of Lao Gan Ma chilli sauce.

Want to know more? To read all about the Lao Gan Ma brand and its history, click here for our feature article on the brand and its founder.

Hungry? Lao Gan Ma is also for sale in your local (Asian) supermarket, and also sells it products through Amazon here.

By Manya Koetse

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©2020 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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China Arts & Entertainment

Two Hour Time Limit for KTV: China’s Latest Covid-19 Measures Draw Online Criticism

China’s latest COVID-19 infection prevention and control measures are drawing criticism from social media users.

Manya Koetse

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First published

No more never-ending nights filled with singing and drinking at the karaoke bar for now, as new pandemic containment measures put a time limit as to how long people can stay inside entertainment locations and wangba (internet cafes).

On June 22nd, China’s Ministry of Culture and Tourism (文旅部) issued an adjusted version to earlier published guidelines on Covid-19-related prevention and control measures for theaters, internet cafes, and other indoor entertainment venues.

Some of the added regulations have become big news on Chinese social media today.

According to the latest guidelines, it will not be allowed for Chinese consumers to stay at various entertainment locations and wangba for more than two hours.

Singing and dancing entertainment venues, such as KTV bars, can only operate at no greater than 50% maximum occupancy. This also means that private karaoke rooms will be much emptier, as they will also only be able to operate at 50% capacity.

On Weibo, the news drew wide attention today, with the hashtag “KTV, Internet Cafe Time Limit of Two Hours” (#KTV网吧消费时间不得超2小时#) receiving over 220 million views at the time of writing. One news post reporting on the latest measures published on the People’s Daily Weibo account received over 7000 comments and 108,000 likes.

One popular comment, receiving over 9000 likes, criticized the current anti-coronavirus measures for entertainment locations, suggesting that dining venues – that have reopened across the country – actually pose a much greater risk than karaoke rooms due to the groups of people gathering in one space without a mask and the “saliva [drops] flying around.”

The comment, that was posted by popular comic blogger Xuexi, further argues that cinemas – that have suffered greatly from nationwide closures – are much safer, as people could wear masks inside and the maximum amount of seats could be minimized by 50%. Karaoke rooms are even safer, Xuexi writes, as the private rooms are only shared by friends or colleagues – people who don’t wear face masks around each other anyway.

Many people agree with the criticism, arguing that the latest guidelines do not make sense at all and that two hours is not nearly enough for singing songs at the karaoke bar or for playing online games at the internet cafe. Some wonder why (regular) bars are not closed instead, or why there is no two-hour time limit for their work at the office.

Most comments are about China’s cinemas, with Weibo users wondering why a karaoke bar, where people open their mouths to sing and talk, would be allowed to open, while the cinemas, where people sit quietly and watch the screen, remain closed.

Others also suggest that a two-hour limit would actually increase the number of individuals visiting one place in one night, saying that this would only increase the risks of spreading the virus.

“Where’s the scientific evidence?”, some wonder: “What’s the difference between staying there for two hours or one day?”

“As a wangba owner, this really fills me with sorrow,” one commenter writes: “Nobody cares about the financial losses we suffered over the past six months. Our landlord can’t reduce our rent. During the epidemic we fully conformed to the disease prevention measures, we haven’t opened our doors at all, and now there’s this policy. We don’t know what to do anymore.”

Among the more serious worries and fears, there are also some who are concerned about more trivial things: “There’s just no way we can eat all our food at the KTV place within a two-hour time frame!”

By Manya Koetse

*” 餐饮其实才更严重,一群人聚在一起,而且不戴口罩,唾沫横飞的。开了空调一样也是密闭空间。电影院完全可以要求必须戴口罩,而且座位可以只出售一半。KTV其实更安全,都是同事朋友的,本身在一起都不戴口罩了,在包间也无所谓。最危险的餐饮反而都不在意了”

Spotted a mistake or want to add something? Please let us know in comments below or email us. First-time commenters, please be patient – we will have to manually approve your comment before it appears.

©2020 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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