Amoy Food was run as a family business
When Cheng Yum Kwai began to work with Amoy in 1966, the company was still a family enterprise respectively managed by the Wongand Cheng families. Amoy’s managing director Wong TukSau adopted a fairly strict and uncompromising management style. Wong TukSau lived in the manager’s residence in Amoy Industrial Estate. Whenever employees committed any kind of inappropriate behaviour, he would immediately impose fines or make deductions from their salaries. A former president of the Chinese Manufacturers’ Association of Hong Kong (“CMA”), Wong TukSau was active in social activities, leaving much of factory business to be taken care of by Manager Cheng Ching Fun. Having studied in the UK, Cheng Ching Fun adopted a more open and reasonable management style. Amoy’s two deputy managers were both of Xiamen origin, while the assistant manager was Cantonese. The manager and deputy manager of the paper factory and soy sauce division camefrom Xiamen, while the management of the Green Spot plant was a native of Guangdong.
Reform of personnel system after Sime Darby Group took over, Hang Lung Group acquisition and the subsequent...
In 1972, the Sime Darby Group acquired Amoy following a share exchange. Initially, Sime Darby had an equal amount of equity asthe Huang and Cheng families did, but gradually Simebought up Amoy’s shares on the stock market. By the time it sold its shares to Hang Lung, Sime Darby already held a 60% equity. After acquiring its stake in Amoy, Sime Darby did not make changes toAmoy’s business and employed the same group of staff from the previous owner. The major change was to introduce a managing director as well aspersonnel and accounting managers to oversee the changes in Amoy’s administrative and personnel systems. At this time, Wong TukSau became a deputy director, beginning to withdraw gradually from the company’s daily operation while Cheng Ching Fun remained in the company with the title general manager. After taking over Amoy, Sime Darby commissioned consultants to review the salary levelsof all supervisory and managerial staff. As a result of this appraisal, Cheng Yum Kwai was awarded a 10-20% salary increase. In the early days, Amoy did not have a well-definedemployee remuneration system and had not yet set up a master pay scale. As a result, wage differentials in the same job position wasnot uncommon. Sime Darby reformed the company’s remuneration system, paying bonuses based onprofits and salary levels. In the past, bonuses were given to employees as gratuities after individual staff members were appraised by their boss. In the early days, Amoy’s personnel matters were handled by the general affairs department and if an applicant was introduced by an acquaintance, no job interviewswerenecessary. From 1972 onwards, manpower matters were overseen by a dedicated personnel manager and there were systems for recruitment and salary levels. As a result, newcomers needed to fill in forms and had to undergo job interviews before they could be hired. In 1977, the Hang Lung Group bought Sime Darby's Amoy shares and subsequently carried out property development projects in Amoy Industrial Estate. At this time, Amoy bought the South Sea textile millwhich had already ceased operation, and movedmost of its operations from Ngau Tau Kok to South Sea in 9½ Milestone in Tsuen Wan. Amoy’s soy sauce division and paper factory were the first to gofollowed by the sauce division. The productionof soy sauce required a large pieceof land, and the former South Sea textile millhad all the space needed. At this point, Amoy began using huge plasticvats to sun-dry soybeans. This was a radical change from the previous practice of building sun-drying tanks. At the same time, the company installed new machinery for production. As Amoy staff quarters were still in Ngau Tau Kok, the company had to use shuttle buses to sendstaff to and from the new plant. Some employees were reluctant to work in Tsuen Wan and Amoy made them redundant and compensated them according to local labour legislations. In 1978, Hang Lung closed the Green Spot bottling plant and Amoy laid off about 200 employees including drivers, salesmen and production workers with better compensations than what the labour legislation prescribed. In 1986, Hang Lung closed Amoy’s corrugated paper factory which manufactured packaging cartons. Ultimately, around 100 workers were laid off with not too bad compensation. When Cheng Yum Kwai joined Amoy, Amoy already had a Staff Welfare Association which held annual meetings to elect office bearers and which Amoy would notify prior to implementing new policies. Under the Staff Welfare Association was a co-operative association which provided bargain-priced welfare goods and held annual dinners for staff. The Staff Welfare Association was also very active in defending employee rights during occasions such as Amoy’s plant relocation,laying off in 1977 and the abolition of pensions in 1984.
Reform of Amoy Food after foreign firms’ acquisition since 1980s, Development of food products of half a c...
When U.S. company Pillsbury acquired part of Amoy’s shareholding from Hang Lung Group in 1984, it changed the employees’ pension scheme to a provident fund. It also began selling off the Ngau Tau Kok plant to property developers in stages. At that time, Phase One of Amoy Gardens had already been completed and Amoy set up an additional security team ran by the personnel department to handle patrol duties. Pillsbury’s acquisition of Amoy’s shares had little impact on employees’ sense of loyalty. The only solidchangewas the setting up of a new plant in Tsuen Wan, resulting thatstaff hadto take factory shuttle buses to work. That said, the Tsuen Wan plant opened a staff canteen. In 1991, the French BSN Group (formerly the Danone Group) acquired Amoy’s food business and assigned three French nationals as its managing director, personnel and marketing managers but leaving the production lines and employee benefits essentially unchanged. BSN was a diversified food company and its many businesses included Jacob’s biscuits, beers, glass bottles and cheeses. In 2006, Japanese company Ajinomoto Co. Inc. took over Amoy’s food business and sent four Japanese nationals to Hong Kong. Two of these staff subsequently took charge of Amoy’s research and development department (frozen food, soy sauce and sauce) while the remaining two served as deputy dim sum plant manager and company’s managing director. While Amoy’s products and production processes remained largely unchanged, specialists were occasionally sent from Japan Head Office to Hong Kong to give expert advice. Between the 1960s and 1970s, there were spectacular changes in Amoy’s products . Preservedgingers had been produced since as early as the 1940s. Sadly, increasingly keen competition following China’s opening up of ginger exports in the late 1970s resulted in the shrinking of this trade in Hong Kong. Amoy production of preserved ginger was eventually haltedin the mid-1980s. After moving to the Tai Po Industrial Estate, Amoy started to produce a new line of canned preserved gingers called “Stem Ginger in Syrup”. Peanut oil was another success in the 1950s and 60s, but its popularity was only brief. It had already stopped production when Cheng Yum Kwai joined Amoy in 1966. From 1966/67 onwards, Amoy served as an agent for the popular Japanese May Yee milk powder, a business that continued to thrive for many years. After mainland China undertookeconomic reforms and the “open door” policy, the exportof agricultural products such as lychees, longans, bean sprouts, offal and bamboo shoots to Hong Kong exploded. This had badly affected Amoy’s canned food business, causing its production output to continue to decline after the 1970s.
Changes of production technique of Amoy soy sauce, Research and Development of Amoy Food
For decades, there were very few changes in the methods Amoy used to produce soy sauce aside from the advances in the fermentation process. In the past, Amoy used to hold roughly an inch deep of soybeans in bamboo sievesin the fermentation room, and thenadded mold species intoeach sieve to facilitate soybean fermentation. After the beans had fermented for three days, they were removed from the sieves. During the fermentation process, many soybeans became stuck to the bamboo of the sieves making cleaning very difficult. As the optimal temperature for soybean fermentation was 30 degrees Celsius, heaters needed to be placed in the fermentation room during the colder winter months. Nowadays, soybeans are contained in 8-inch tall yeast boxes for fermentation. As each box has a stainless steel perforated plate at its bottom, cleaning is very easy. Modern yeast boxes are also equipped with air circulationand thermostat functions which significantly reduce fermentation times and manpower requirements. As Cheng Yum Kwai knew that Amoy’s production methods back then were similar to those used by its competitors, he felt the only way Amoy could distinguish its products was through the mold species it used. The fact that Amoy had its own mold species meant experts in the soy sauce trade could quickly recognise the flavour of each maker’s different brands. Indeed, so distinctive was its taste that Amoy’s Gold Label Light Soy Sauce had firmly established itself as the top selling condiment of its kind in the market for many years. This was despite the fact that Amoy spent measurably less on promotion and marketing than its leading rival, Lee KumKee, did. That said, Amoy did have a marketing department and a production department which worked together to launch new sauces based onresults from marketing research. Amoy had pioneered its in-house research and development (RandD) department as early as the 1950s, bringing in Xiamen natives, who were experienced in the food industry, to engage in new product development. In the 1960s, many highly educated talents committed to theRandD for Amoy. Indeed, so highly regarded was the factthat the present manager of I Ho Yuan Food Products and a consultant of Lee KumKee had previously worked forAmoy. While shares in Amoy were acquired by foreign investors after the 1970s at different periods of time, the new owners made few investments in advanced technologies in Amoy. Ultimately, it was only after its acquisition by Japan’s Ajinomoto that there was any real move forwards in soy sauce production. This is probably due to the fact that China and Japan use different methods to ferment soy sauce, with the Japanese tending to favour frozen fermentation.
Amoy Food’s Dealership of Green Spot and Pepsi brand, Sales approach and three big outlets
Amoy built the Green Spot plant in 1958 and subsequently acquired the Green Spot beverage dealership in 1960. In 1977, Vitasoy gave up the Pepsi Cola dealership and transferred it to the Sime Darby Group who were by then owners of Amoy. At that time, Amoy was keen to promote the Pepsi brand. To this end, it purchased soda bottling machines from Germany and hired 40 delivery trucks. Its aim was annual sales of 2,000,000 trays of soft drinks. While working with Pepsi, Amoy also served as an agent of, and produced brands for, beverages such as Mirinda and Green Spot. As the business began expanding too fast and advertising and logistics costs were huge, Pepsi began to createheavy losses during its second and third year with Amoy. As a result, when Hang Lung Group took over Amoy, they immediately closed the unprofitable Pepsi bottling plant. In these early years, the beverages which Amoy represented as agent were only packaged in bottles and cartons, cans were only applied later. To market its beverages, Amoy employed a direct sales approach to a customer base mainly made up of grocery stores and restaurants. To this end, trucks were used to deliver beverages directly from Amoy’s Ngau Tau Kok plant to customers across Kowloon. Before the completion of the Cross Harbour Tunnel, the company also rented a warehouse in Java Street at North Point. The products were transported from Ngau Tau Kok to the warehouse, so that the products to be sold on Hong Kong Island will be delivered to retail stores by truck. In those days, Amoy’s drivers used to collect empty bottles from the retail stories while deliveringorders to the stores. Each empty bottle can be refunded $0.20 to the users who returned to Amoy. When Amoy later built its Ting Yuen House industrial building at Wong Chuk Hang, it moved the North Point warehouse to the ground floor and leased out the upper floors of the new property. Amoy arranged specific trucks for different product lines under the management of respective divisions. In addition to soy sauce, the trucks also deliveredsoft drinks. Drivers working in the general affairs department not only made deliveryof products but also chauffeured senior executives such as directors and the general manager around town. Beginning in the 1960s, Amoy ran three retail outlets in Hong Kong Island and Kowloon. Collectively known as the “three big branches”, the outlets were located in Kowloon City, Hennessy Road and Nathan Road which sold Amoy’s core products such as soy sauce, preserved gingers and canned food.
How male and female workers joined Amoy and their opportunities for career advancement.
Wong Wing Man often remarked on how hard it was to find jobs in Hong Kong in the 1950s and 1960s. In those years, immigrant workers tended not have any skills. As a result, men usually joined Amoy as handymen before transferring to various departments as permanent staff. The men learned as they worked and could eventually be promoted to become technicians. Wong Wing Man recalled that all soy sauce department technicians started off as handymen and only achieved technician status after gaining some 10 years’ experience. Around 30 to 40 male workers joined Amoy at the same time as Wong Wing Man and Amoy provided them all with bed and board. Female workers were usually introduced by people connected with the company and were often permanent workers’ family members. Female employees tended to carry out work such as cutting cucumbers, sorting beans and gluing can labels in the pickle room. In those times, women had no promotion prospects and were paid just $0.60-0.70 each day.
Conditions for admission into Amoy’s dormitory and facilities available to residents.
Amoy Industrial Estate had its own staff dormitory, nicknamed the “Bachelors’ Dormitory”, which was situated near its hillside area. The two-storey high facility had 13 to 15 rooms on each level with around four iron beds to each room. While workers did not have to pay rent, they were required to bring along their own bed sheets and mats. Amoy’s unmarried senior permanent employees were eligible for admission to the dormitory but had to move out after they got married. In the early 1960s, Amoy built a welfare building where married senior permanent employees could apply for family flats. The welfare building was situated in the area now known as Amoy Garden Phase 4. Each small flat had an area of around 300 sq. ft. There were also larger flats which had their own store room available for a monthly rent of $10 more. When the welfare building was first completed, department heads and management grade staff were given first choice on which flats to occupy. At that time, Wong Wing Man was a deputy head and married with a child. He chose a small flat on the fifth floor facing east, later applying to move to a larger unit. After Hang Lung acquired Amoy, the welfare building was demolished and all residents received compensation. As the tenant of a larger flat, the compensation Wong Wing Man and his family received was $20,000 more than that given to residents of smaller units. The welfare building also once housed facilities such as a clinic, a nursery and a co-operative association.
Living and entertainment in Amoy Industrial Estate. Family burdens and how Amoy cared for its staff’s welf...
When Amoy Industrial Estate was located at Ngau Tze Wan between the 1950s and 1960s, workers led a simple and happy life. Three meals were served, with congee for breakfast and rice for lunch and dinner. After dinner, workers often relaxed by playing basketball or ping pong or enjoying a night out in Kowloon City. To get to Kowloon City, staff either had to walk for an hour or take a bus and pay for a $0.10 ticket. At that time, the No. 5 bus route went to Kowloon City and the nearest bus stop was near what is now Ping Shek Estate. By far the most popular form of entertainment in those days was fishing for clams and crabs. The seaside was just across the road opposite the main entrance of Amoy Industrial Estate. Many workers took buckets to catch the clams and crabs and returned home with full loads almost every time. Wong Wing Man liked basketball and always tried to play during lunch breaks and after work. At that time, Amoy’s workers tended to be simple and modest and only a handful of them gambled. During the period when the plant began operating at Tai Po, more workers started to place wagers. Wong Wing Man recalled a story of how one thrifty male worker from the pickle room bought gold after receiving his annual double pay at Chinese New Year. As Wong Wing Man had nine brothers and sisters and was the eldest son of a poor family, he tended to give all his wages to his parents. Because he lived and had meals in Amoy during work days and holidays and had no other entertainment, Wong Wing Man had very few outgoings. Wong Wing Man enjoyed Amoy’s good welfare, as free meals were provided to male workers every day. On every Sunday, staff took their families to dine in the estate canteen and brought home any leftovers. Children could also play on the Amoy basketball court. The company even had a laundry room and hired three female workers for washing. It cost only $4 a month to have the entire family’s clothes and bed sheets cleaned! Despite Amoy’s several changes of ownership during Wong Wing Man’s career, the company continued to offer excellent welfare benefits.
Amoy’s basketball team played in open matches. Workers composed the Amoy song and celebrated festivals wit...
The basketball team formed by Amoy’s employees participated in matches for the annual Factory Cup tournament. Organised by the Hong Kong Basketball Association, this challenge was open to all factories in Hong Kong. Later, Amoy’s management hired top local basketball stars to form a professional team and participate in open matches in Hong Kong and Singapore for promotional purposes. The professional team was coached by Shek Chun Tat and had famous players like Ng Yet Ang, Joachim H. L. Poon and Yung Pi Hock. When not playing in open matches, the pros played against teams of employees in order to allow the staff players to sharpen their skills. Called the Lucky Team, the Amoy employees’ team played in two or three open matches and was rated as being a dark horse by the press. The staff team was organised by Amoy’s senior accountant Wong Ching Hang. In those years, Radio Hong Kong visited factories and interviewed people there for broadcast every Saturday. Amoy was among the companies whose staff was interviewed. Wong Ching Hang composed the Amoy company song “The One Family of Amoy” and Radio Hong Kong recorded and broadcast it. Wong Wing Man still remembers a few lines of the song he and his colleagues would sing together during festival celebrations! Wong Ching Hang was later promoted as the manager of Amoy’s paper products factory. During traditional celebrations such as Chinese New Year and Mid Autumn Festival, Amoy either added more dishes to its usual menu or threw parties in the canteen so its employees could celebrate.
Memories of Amoy’s stall at Hong Kong Product Expo in Tsim Sha Tsui.
Wong Wing Man also helped out Amoy’s stalls at the Hong Kong Products Expos (HKPE) held in Tsim Sha Tsui, taking charge of operating the machines for transporting cans and for launching flying saucers. Flying saucers were ejected once every half an hour and attracted big audiences. A few Expos were held in Tsim Sha Tsui in the 1950s and Wong Wing Man worked on Amoy’s stalls at around this time. Many people liked to buy Amoy’s soy sauce here and the company also gave away tens of thousands of small souvenir bottles free of charge each day. People also liked to buy canned dace with salted black beans and pig’s trotters with gingers. At that time, no other company in Hong Kong produced canned dace with salted black beans. In those years, Amoy was a very big name locally and its boss Huang Du Xiu had served as Chairman of the Chinese Manufacturers Association. As a result, he always demanded the staff manning Amoy’s stall do their very best.
