In 1994, the company acquired three insolvent companies in Sichuan, and established its first factory in Chongqing. A local manufacturing base enabled the company to reduce distribution costs to western China. Once talks had started with Danone, capital became available once again for the company. WHH launched "Wahaha Pure Water" and struck gold with it. Over the next three years, WHH would acquire 40 more companies in 22 different provincial cities, transforming it into one of the largest beverage companies in China.