Chinese Consumers Spending More On Healthful Snacks

Thanks largely to the stay-at-home lifestyle enforced by the COVID-19 pandemic, China's snack market is expected to grow rapidly in the coming years with a major trend toward fresh and healthful food, according to Beijing-based think tank EO Intelligence. The sales volume of China's snack market will reach three trillion yuan ($429 billion) in 2020 and surpass four trillion yuan ($572 billion) in 2025. Seventy-one percent of survey participants said snacks are important to their physical and psychological health; and more than 85 percent of snack-loving Millennials said freshness and healthful qualities are priorities in choosing snacks. Another report by U.K.-based Barclays Bank said Generation Z consumers pay a lot of attention to snack nutrition and prefer plant food.

"Consumer spending on healthy, fresh snacks rises", China Daily European Edition, July 22, 2020

Nestlé SA Settles On Six Major Bidders For Yinlu Foods Group

The list of bidders for the company’s Chinese business unit was trimmed to six, including three food and beverage companies and three private equity firms. Yinlu Foods Group, a maker of instant porridge and Nescafe ready-to-drink coffee, could fetch at least $400 million. Binding bids are due by the end of August from China Resources Beer Holdings Co., Tingyi Cayman Islands Holding Corp., Dali Foods Group Co., FountainVest Partners, Affinity Equity Partners, and Citic Private Equity Funds Company management have also been invited to participate in the bidding. Yinlu, which specializes in the production and sale of canned foods and beverages, was acquired by Nestlé in 2011.

"Nestlé Narrows Bidders for Yinlu Foods Unit in China", Bloomberg News, July 17, 2020

Food And Beverage Giant Wahaha Ponders Billion-Dollar IPO

Chinese beverage company Hangzhou Wahaha Group Co. is considering an initial public offering that could raise more than $1 billion, Bloomberg reports. An adviser is working with the company on the IPO, which would probably take place in 2021. Wahaha markets products ranging from bottled water, yogurt drinks, and juice to instant noodles, sold in more than 30 countries, including Canada, Singapore, and the U.S. It maintains 80 production plants and employs about 30,000 workers. Bloomberg notes that Wahaha joins fellow Hangzhou-based beverage firm Nongfu Spring Co. in seeking a first-time share offering. Nongfu filed for its Hong Kong IPO in late April and plans to raise about $1 billion.

"China Beverage Firm Wahaha Said to Mull IPO Above $1 Billion", Bloomberg, July 03, 2020

Coke’s Costa Coffee Launches Cross-Branded Coffees In China

Chinese branches of Costa Coffee will be serving in-store brewed Coca-Cola-flavored coffees – Latte and Cappuccino – in Chinese branches of Costa Coffee. The drinks are the first cross-branded products to come out of Coca-Cola's $4.9 billion purchase of Costa Coffee in 2019. The coffees, available since May, are part of the summer menu in China. A cold brew coffee designed to be served over ice will be available later. Meantime, PepsiCo is deepening its partnership with Italian coffee company Luigi Lavazza, which launched two new Lavazza RTDs in the U.K. last week.

"Costa Coffee brews Coca-Cola-flavored coffee for China", Just-drinks.com, June 30, 2020

Carlsberg Partners With 7-Eleven In Hong Kong On Special Beer Promotion

Visitors will be able to sample a rotating selection of Carlsberg brews, beginning with Elephant Strong, Carlsberg Export, and Unfiltered, an unfiltered, full-bodied pilsner. Visitors between June 24 and July 21 can receive a limited-edition Carlsberg beer glass set when spending $60 or more.

"7-Eleven and Carlsberg open new concept store in Hong Kong", Time Out Hong Kong , June 19, 2020

Huiyuan Juice Products Now Featured On All Three Of China’s Major E-commerce Platforms

Fruit and vegetable juice firm China Huiyuan Juice is reportedly investing heavily in its e-commerce platforms to maintain its leadership rank in the China Brand Power Index. Consumers can now purchase Huiyuan’s products – 100 percent juices, nectars, and juice drinks – in the Huiyuan Beverage Flagship store on the Pinduoduo platform, as well as on China’sother  e-commerce platforms, Tmall and Jd.com. Pinduoduo has 600 million active users, 3.6 million merchants, and an annual transaction volume exceeding $140 billion.

"Packs a punch: Huiyuan Juice embraces new retail models as it seeks to hold on to top ranking", Beverage Daily, June 02, 2020

Brazil’s Citrosuco NFC Orange Juice To Launch In China

Brazilian orange juice supplier Citrosuco and Chinese premium juice company Zero Degree Fruit Shop are partnering to launch Citrosuco’s Mombuca in China. Mombuca is marketed as a unique variety of “not from concentrate” (NFC) juice from Brazil with a balanced taste between acidic and sweet. NFC is a small category in China, competing with fresh fruits and artisanal freshly squeezed juices (not commercially packaged). NFC is seen as a high-end drink for tier one and tier two white collar workers and mostly sold at convenience stores. Euromonitor pegs retail sales of NFC juice in China at $690 million by 2023. A smaller company than Nongfu Spring, Zero Degree is said to be more agile and bolder in experimenting with new flavor and taste.

"Brazil’s Citrosuco introduces new orange juice to China", IEG Vu, June 01, 2020