Coca-Cola China Sees Positive Growth Since Smartwater Launch October 12, 2022: 12:00 AM EST Coca-Cola China has experienced positive growth since it introduced Smartwater to the premium bottled water market in July. During Q2 of this year, the company’s sales of bottled water, sports drinks, coffee and tea grew by 7 percent year-on-year. Smartwater is currently produced in Nanjing, Jiangsu province, targeting urban white-collar workers aged 25-34 for on-the-go, fitness, at-home and social occasions. Premium water and hydration products are growing in popularity among Chinese consumers due to the pursuit for better living quality and growing worries over environmental pollution.  Wang Zhuoqiong, "Coca-Cola heats up bottled water market", China Daily, October 12, 2022, © China Daily Information Co (CDIC)

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Danone Launches Line Of Healthy Ageing Powder Drinks In China July 26, 2022: 12:00 AM EST Danone has launched Ganmai in China, a line of three healthy ageing powder beverages, to promote healthy aging in consumers aged over 40 by providing necessary nutrients. Ganmai was developed by the Danone Open Science Research Center for Life-Transforming Nutrition in collaboration with global and Chinese Scientific experts and combines Western medicine with Traditional Chinese Medicine. The three beverages support different functions and are designed to be consumed at different times of the day - the 7am Probiotics Fiber Powder Drink for gut and immune health, the 2pm Multi Protein Light Drink for mobility, and the 9pm Nutritional Evening Drink for sleep and brain health. The products are made using ingredients including pre/probiotics, collagen peptides, and GABA. Ganmai is currently only sold online via Tmall and Douyin – the Chinese version of TikTok. Danone has also launched a Ganmai digital health tool for consumers to customize and track their own functional nutritional performance. Tingmin Koe, "Triple tipples: Danone’s three latest healthy ageing powder drinks in China launched on Tmall, Douyin", Nutraingredients-asia.com, July 26, 2022, © William Reed Ltd

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Genki Forest To Introduce New Sugar-Free Cola July 22, 2022: 12:00 AM EST Chinese beverage company Genki Forest, known for its low-sugar tea and sparkling water beverages, has entered the sugar-free cola market to rival giants Coca-Cola and Pepsi. The company’s cola product is placed in its sugar-free sparkling water series and aims to take a more sophisticated approach to the popular drink. Genki Forest’s cola contains no food preservatives, such as sodium benzoate and potassium sorbate, and uses natural substitutes instead of chemical additives. For example, it uses natural caffeine and erythrocytic sugar alcohol instead of aspartame, acesulfame, and other artificial sugar sweeteners. The new drink will officially launch in August, with advanced arrival planned for e-commerce platforms. Luan Li, "China's Genki Forest Debuts Cola Water to Rival Coca-Cola, Pepsi", Yicai Global, July 22, 2022, © Yicai Global, Yicai Media Group

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Coca-Cola Launches First Herbal Tea Drink In China June 20, 2022: 12:00 AM EST Coca-Cola has launched its first herbal tea drink in China. Made with selfheal, which claims to have analgesic, anti-inflammatory, antibacterial, and anticoagulation properties, while reducing blood viscosity and improving microcirculation, it’s produced in Hong Kong by HealthWorks and costs CNY12 ($1.80) for a 500ml bottle. China’s dominant herbal tea drink brand, Wanglaoji, markets a similar beverage in the same volume for just CNY4 ($0.60) Xu Wei, "Coca-Cola Brings Out Its First Herbal Tea in Chinese Mainland", Yicai Global, June 20, 2022, © Yicai Global, Yicai Media Group

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Chinese Dairy Giant To Conduct Milk Research In Space April 21, 2022: 12:00 AM EST The Chinese dairy conglomerate Yili Group announced it would collaborate with China Aerospace Science and Technology Corporation (CASC) to conduct research in space on dairy products. A core part of the partnership will be the establishment of the Space Lab for Future Dairy. A spokesperson expressed hope that the work will “will bring about lighter, safer and more environmentally friendly food packaging materials, as well as nutrition and health products tailored for special segments of the population, with the aim of enabling consumers to enjoy advanced technologies and products in their daily lives.” "Yili Teams Up with CASC to Launch Space Lab for Future Dairy", PRNewswire , April 21, 2022, © Cision US Inc.

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Yunji Extends Its Qingziyang Brand With A Probiotic Beverage January 7, 2022: 12:00 AM EST In China, Yunji Inc., a membership-based social e-commerce platform, launched the Qingziyang probiotics beverage. The company said that customers purchased 55,000 boxes in the first 40 seconds. Qingziyang’s food products for women have been developed with ingredient supplier, IFF; a high-tech probiotics company, Wecare; and robotoc and automated machinery producer, Yuanyi. Yunji’s EO and founder, Shanglue Xiao, said the extension to its product range “is further evidence of the success of our strategy of cultivating megahit products across all categories”, and that the company is committed to developing more “healthy and nutritious products to consumers". "Yunji Announces Launch of New Private Label Qingziyang Probiotics Beverage", PRNewswire , January 07, 2022, © Cision US Inc.

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Vinamilk Introduces Organic Milk To China Market November 29, 2021: 12:00 AM EST Ho Chi Minh City-based Vietnam Dairy Products Joint Stock Company (Vinamilk) said the new organic milk product was well-received at a recent food trade show in Shanghai, where it received “numerous orders” on the first day. The organic fresh milk meets organic standards in China and the EU. The company also unveiled skimmed and pasteurized fresh milk products at the show. Vinamilk's fresh milk product line will be available on both online and offline channels of the Jingdong in Shanghai. Ecommerce channels for these products will also be made available soon. "Vinamilk Successfully Debuts Organic Milk at Shanghai's Global Food Trade Show", PRNewswire , November 29, 2021, © Cision US Inc

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Nestlé China Targets Young Mothers With Convenient Liquid Milk For Babies November 16, 2021: 12:00 AM EST The Beijing-based company sees growth potential for the infant liquid milk category, especially among mothers in their twenties demanding more convenient and functional solutions. In fact, immune benefits, nutrition profile, and convenience are the top three factors that Gen-Z mothers consider when selecting infant formula. Beba Supreme Pre contains five types of human oligosaccharides (HMOs) that represent  some of the most abundant across the three major structural categories in human milk. They are chemically and structurally identical to those found in human milk. Nestlé China showcased Beba Supreme Pre, produced by a German subsidiary, during the recent China International Import Expo (CIIE). Tingmin Koe , "Infant liquid milk in China: Nestlé strives to meet Gen-Z's demands for convenience and immunity benefits", Food Navigator Asia, November 16, 2021, © William Reed Business Media Ltd

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Xebra Brands Informs Health Canada Of Distribution Plans For Pot-Infused Lemonade November 5, 2021: 12:00 AM EST The Vancouver, B.C.-based cannabis company said it has submitted a new product notice for its THC-infused lemonade, Vicious Citrus, to Health Canada, for planned distribution to multiple provinces in the spring of 2022. By law, the agency must be notified of the intent to sell a cannabis product that they have not previously sold in the country. Xebra has formulated several dozen cannabis-infused beverages under six brands, including MadCap seltzers and soft drinks, HighJack energy drinks, HolaHi iced teas, Vicious Citrus lemonades, HighCastle waters and Conquer, a CBD sports beverage. The company plans to launch more beverage brands in Canada after Vicious Citrus. "Xebra's Vicious Citrus THC Lemonade Submitted To Health Canada", PRNewswire , November 05, 2021, © Cision US Inc

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Nestlé Unveils Slew Of New Products At Chinese Expo November 5, 2021: 12:00 AM EST The company’s plant-based beverages are among products being showcased at the China International Import Expo (CIIE). Nestlé’s fourth appearance at CIIE this year features 275 products – 14 of which are making their debut in China – from 19 countries, Ten Nestlé business units are participating in CIIE. Nespresso is launching a new coffee extraction system in the Chinese market, along with the Nespresso Momento Range of professional coffee machines. Wang Yanlin, "Nestlé debuts 14 new products in China", Shine.cn, November 05, 2021, © Shanghai Daily

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Chinese Coffee Drinkers Like Plant-Based Creamers, Including Potato Milk October 9, 2021: 12:00 AM EST Consumers in China are increasingly attracted to plant-based milk as a creamer alternative to cow’s milk. It’s not surprising, considering the fact that a large majority of Chinese people have trouble to some degree digesting the sugars in animal milk. In addition to oat milk, Chinese consumers can choose milk made from soy, coconut, peas, and now potatoes. According to research company Internet Personality, if the Swedish oat milk brand Oatley can gain popularity in China, then “potato milk has plenty of potential as well."   "Plant-based milk gaining ground in China's beverage market", China Global Television Network , October 09, 2021, © China Global Television Network

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Swire Coca-Cola Builds $140M Bottling Plant In Central China October 9, 2021: 12:00 AM EST The Hong Kong-based Coca-Cola bottler is spending $140 million on construction of a bottling plant in Zhengzhou, capital of central China's Henan Province. Covering 124,000 square meters, it will be operational by 2023 with an annual production capacity of a million metric tons. The company says it will invest more than $853 million in factory infrastructure in China over the next five years, adding 20 production lines while spending on sustainable development projects in carbon reduction and water-saving in the country. One of the largest Coca-Cola bottling groups in the world, Swire Coca-Cola has 18 plants on the Chinese mainland. "Coca-Cola bottler invests 900 mln yuan in China's Henan", Xinhua, October 09, 2021, © XINHUANET.com

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Carlsberg To Work With KHS Group To Enhance Beer Quality In China September 14, 2021: 12:00 AM EST After joining forces to install two beer canning lines in China, the Danish brewer and the German supplier of filling and packaging systems (Dortmund) announced plans involving a new streamlined layout and production design for canning. The new systems would be implemented across all of Carlsberg’s Chinese factories to “improve the quality of local beers in the long term” with “constant modernization of existing plant equipment.” The core of the canning line is the ultramodern can filler that processes up to 90,000 0.33-liter cans or a maximum of 60,000 0.5-liter cans per hour, ranging from local brands to Carlsberg’s popular global drinks products. Jessica Mason, "Carlsberg and KHS pledge to ‘improve the quality’ of beer in China", The Drinks Business, September 14, 2021, © Union Press Ltd

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Japan’s Yakult Fined For Claiming COVID-19 Prevention September 6, 2021: 12:00 AM EST The Shanghai subsidiary of Japanese sweetened probiotic milk beverage brand Yakult (Tokyo) has been fined $69,767 by Chinese provincial regulators for claiming that probiotics play an important role in COVID-19 prevention and treatment. The misleading advertising reportedly helped boost the company's beverage sales, while hindering fair competition. The company reportedly also improperly cited the Protocol for Diagnosis and Treatment of Novel Coronavirus Pneumonia in the promotion, which would have generated medical trust in the Yakult lactobacillus beverage among the public. Hu Min, "Yakult beverage company fined for misleading advertising", Shine.cn, September 06, 2021, © Shanghai Daily

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Lifeaid Beverage Debuts Post-Workout Recovery Drink July 28, 2021: 12:00 AM EST The Santa Cruz, Calif.-based functional beverage company’s Fitaid Strawberry Lemonade hit store shelves in June claiming to be the “ideal post-workout recovery beverage,” with 40 calories in a 12-ounce can plus omega-3 fatty acids and essential vitamins. The drink was made available to gyms across the U.S. and Canada ahead of its wider release, and is also available at HEB and Vitamin Shoppe. Fitaid's recovery blend includes branched-chain amino acids (BCAAs), glucosamine, CoQ10, and omega-3s, plus raw organic blue agave (as a sweetener), and no artificial flavors or sweeteners.  Sarah Graybill, "Lifeaid launches functional drinks to boost post-workout recovery", Beverage Industry, July 28, 2021, © BNP Media

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Younger Chinese Consumers Take To Sparkling Water July 26, 2021: 12:00 AM EST A rising number of younger health-conscious Chinese consumers has contributed to the rapid growth of the carbonated water sector in the past two years, according to Mintel data that show that sparkling beverages proved their popularity through the surge in sales of sparkling water. The wide range of applications will allow them to expand into other drink categories. The shrinking population of key younger Chinese consumers and enduring concerns about sugar pose challenges to carbonated soda drinks going forward. As low or no sugar and calories becomes the new standard, beverage company efforts to create "better for you" new products will sustain the market's growth. Meanwhile, sparkling drinks and flavored sparkling water will see a small and positive impact from the COVID-19 outbreak over the medium and long term due to their positioning as a healthy alternative to traditional carbonated soft drinks. Wang Zhuoqiong, "Sparkling beverages soar in popularity among young Chinese", China Daily, July 26, 2021, © China Daily Information Co (CDIC)

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Consortium Of China’s Coke Bottlers Has Reaped Significant Benefits May 1, 2021: 12:00 AM EST The China Bottlers Purchasing Consortium (CBPC), a Coca-Cola/bottlers group created in 2002 to share procurement knowledge and best practices, has become an effective way for Coca-Cola to undertake supply chain initiatives, including implementing World Class Operations (WCO) across the supply network. The eleven suppliers who now comprise the CBPC WCO are strongly focused on operational excellence, a priority that has helped them achieve a turnaround in performance, revenue, and growth. Between November 2017 and March 2020, the collective value of the profit improvement projects (PIPs) undertaken across the supplier network totaled more than $800,000. Other benefits for Consortium members include increased competitive advantages, reduced materials waste, the creation of sustainable value for customers, and reduced consumption of electricity and water. Graeme Faulkner, "Coca-Cola Suppliers in China Share Their Quest to Become World-Class", Industry Week, May 01, 2021, © Endeavor Business Media LLC

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Siemens, Squire Coke China Launch Digitalization Initiative April 13, 2021: 12:00 AM EST The Munich, Germany-based technology company, centered on manufacturing, infrastructure, and transportation, will work with Swire Coca-Cola on digitalization of Swire’s plant construction, supply chain intelligent management, and training of digital talent. They will also jointly build digital plant benchmarks in the beverage industry to promote digital transformation of Swire Coca-Cola in China and around the world. The manufacturing information system (MIS) customized by Siemens for Swire Coca-Cola was applied to its digital production line in Hangzhou. Swire expects that the new initiative will result in an annual production capacity of 550 million cans of Coca-Cola. "Siemens, Swire Coca-Cola partner on digitalization", TradeArabia News Service, April 13, 2021, © Al Hilal Publishing and Marketing Group

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Eat Real Tries Again To Enter Chinese Market April 12, 2021: 12:00 AM EST The U.K.-based maker of healthy snacks – hummus and lentil chips, quinoa puffs, etc. – has been successful at distributing globally. But it ran into a snag when it tried marketing in China two years ago. The company was working with three different distributors, and sold its products via online channels such as Tmall. But the Chinese distributors sold the snacks under three different names, confusing consumers and sparking a price war. The company eventually abandoned the market last year. Now, after reorganizing its business strategy and brand positioning for China, the firm expects to enter the country within the next months. It will bring in only six SKUs, instead of 20, and work with a single distribution partner. Guan Yu Lim , "Rebrand and reintroduce: U.K.’s Eat Real outlines second attempt to enter China with clean and healthy snacks", Food Navigator ASIA, April 12, 2021, © William Reed Business Media Ltd

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Swire Coca-Cola Builds Bottling Infrastructure To Keep Pace With China’s Growth March 16, 2021: 12:00 AM EST Despite continuing uncertainties surrounding the pandemic, the Hong Kong-based Coke bottler is investing heavily in advanced production capabilities, digital supply chains, and ecommerce channels in China. Swire executives say China's resilient economy and stable social environment – not to mention its effective control of COVID-19 – have ensured a strong domestic consumption market, while supporting a global supply chain. Swire’s sales revenue surged 34 percent year-on-year in the first two months of this year, after it saw sales increase by two percent in 2020. Zhong Na, "Coca-Cola bottler seeing robust growth in China's recovery", China Daily, March 16, 2021, © China Daily Information Co (CDIC)

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Danone’s New Honest To Goodness Non-Dairy Creamer Brand Targets Younger Market March 15, 2021: 12:00 AM EST As more consumers brew coffee at home, the company hopes its new line of plant-based creamers will appeal to younger coffee drinkers looking for sustainable and transparent sourcing. Gen Z coffee drinkers, who consume about 28 billion cups of coffee a year, are looking for transparency in product sourcing, while Millennials are committed to sustainability: 75 percent shop with the environment in mind. In the 52 weeks ended Feb. 20, sales of non-dairy coffee creamers are up 32 percent from the same period a year ago, according to Nielsen data. Danone’s Honest to Goodness brand is partnering with environmental organization EarthDay.org, in an effort to promote sustainability by planting trees in Madagascar. Katie Tsai, "Danone looks to grab more coffee creamer sales with launch of plant-based Honest to Goodness brand", CNBC, March 15, 2021, © CNBC LLC

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Stockholders Push Danone To Divest Stake In Chinese Dairy March 1, 2021: 12:00 AM EST According to reports, disgruntled Danone shareholders have pushed the company to sell its $2 billion stake in Mengniu dairy later this year to fund stock buybacks and boost shareholder returns. The announcement came hours before Danone’s board met to discuss its response to calls from investors such as Artisan Partners Asset Management for management changes. Danone Chairman Emmanuel Faber’s suggestion that he shed his CEO role was later approved by the board of directors. Danone first took a stake in Mengniu in 2013. Its 9.8 percent holding is held indirectly in a venture with COFCO Corp., Mengniu’s biggest shareholder. Danone said that China will remain highly strategic for the company following the sale.  Corinne Gretler, "Danone Plans to Sell China Dairy Stake to Appease Shareholders", Bloomberg, March 01, 2021, © Bloomberg L.P.

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President Of Suntory (China) Holding Says China Was A “Bright Spot” In 2020 February 8, 2021: 12:00 AM EST Thanks to the COVID-19 pandemic, the company’s global business slid by five percent in 2020. But China managed to buck that trend. According to Tetsuho Kikuchi, director president, the Chinese market turned out to be a rare bright spot where Suntory saw positive figures for 2020, as it did in 2019. This was due to the country’s effective prevention and control of the pandemic and the steady economic recovery. And because of that surprising performance, Suntory hopes to further increase sales in China from around $310 million to $3.1 billion over the next decade, expanding business from the eastern part to the whole country. Kikuchi said China is “the most important market in the world, and Suntory wants to keep pace with China’s growing economy.” Huang Yixuan, "China now Suntory's most important market", Shine.cn, February 08, 2021, © Shanghai Daily

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Nestlé’s Functional Powdered Milk Product For Adults Approved In China December 16, 2020: 12:00 AM EST The company claims the product, introduced under the Yiyang Active brand, has been clinically proven to enhance mobility during aging by supporting bone health, muscle strength, and joint functionality. The move from the Swiss food giant comes as global consumers are increasingly concerned about healthy aging. The powdered beverage is the first Nestlé product with functional food approval in China. It was developed by Nestlé R&D and clinically tested in a collaboration between Nestlé and the Peking University Third Hospital. Elizabeth Green, "Healthy aging in China: Nestlé unveils functional milk beverage supporting mobility", Food Ingredients First, December 16, 2020, © CNS Media

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Nestlé To Sell Yinlu Peanut Milk Brand To Chinese Firm November 25, 2020: 12:00 AM EST The company will sell its Yinlu peanut milk and canned rice porridge businesses in China to Food Wise Co., Ltd. The deal includes all of Yinlu's operations, including its five factories in Fujian, Anhui, Hubei, Shandong and Sichuan. Yinlu brands had sales of $767 million in 2019. The transaction allows Nestlé to focus on the infant nutrition, confectionery, coffee, culinary, dairy, and pet care in China. Nestlé will retain its ready-to-drink (RTD) Nescafé coffee business and distribute the products across most of the Greater China Region. Yinlu will continue to manufacture the Nescafé RTD products for Nestlé and will distribute the products in several provinces. Yinlu will continue to manufacture and sell Nestea products under license from Nestlé. "Nestlé agrees to sell Yinlu peanut milk and canned rice porridge businesses to Food Wise Co., Ltd.", GlobeNewswire , November 25, 2020, © GlobeNewswire, Inc.

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McDonald’s To Invest $382M In Promoting Its Coffee Brand In China November 18, 2020: 12:00 AM EST The company plans to spend the money opening new McCafé coffee shops inside its 3,600 restaurants to capture some of the growing Chinese demand for coffee. The money will also be spent on upgrading equipment, marketing, and staff training. Coffee shops will be opened in Beijing, Shanghai, Guangzhou, and Shenzhen by the end of the year. This will be followed by an expansion of its business in seven other cities including Nanjing, Hangzhou, and Xiamen.  By 2023, McDonald’s expects to run more than 4,000 McCafé outlets on the Chinese mainland.  Emma Upshall, "McDonald’s to invest over $380m in Chinese coffee market", FoodBev Media , November 18, 2020, © FoodBev Media Ltd

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Hangzhou Wahaha Group Modernizes Its Marketing To Reach Younger Generations November 11, 2020: 12:00 AM EST The key strategy of the Chinese beverage company is to meet the needs of younger consumers while maintaining brand growth. Communicating with young people – including the generations born after 1995 and even 2010 – is a top priority. China's Generation Z (those born after 2010) have benefited greatly from global interconnectivity, scientific and technological development, and consumption upgrades. They are willing to pay for what they are interested in and what they value. Recognizing this, Wahaha has been marketing to niche segments, launching community-based and interactive campaigns targeting young consumers who share interests and hobbies, dubbed “tribes”' or “niche circles,” and who demand more personalized beverages. Wahaha advises beverage companies to switch from standardized production in bulk to individualized and customized production, while imposing more flexible yet strict conditions in terms of R&D, manufacturing, and product management. Jenny Chan, "Wahaha targets China’s health boom, livestreaming and Gen Z’s ‘tribes’", WARC, November 11, 2020, © Ascential Events (Europe) Limited

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Yili Now Ranks In Top Five Of World’s Dairy Companies, Rabobank Says September 7, 2020: 12:00 AM EST A survey by Dutch multinational banking and financial services company Rabobank ranked Chinese dairy producer Inner Mongolia Yili Industrial Group Co., Ltd. (Yili) among the top five dairy producers in the world. According to Yili, Rabobank reported that it is one of the Asian companies “making major moves,” moving into the top five after year-on-year growth of nearly 20 percent. Yili reported a total operating income of 47.53 billion yuan ($7 billion) in the first half of 2020. Yili said recent data showed its current production and sales are “now fully recovered” from the COVID-19 outbreak.[Image Credit: © Yili Innovation] "Yili makes global top 5 in Rabobank's global dairy report", PR Newswire , September 07, 2020, © PR Newswire Association LLC

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Coca-Cola’s Restructuring Aims To Streamline Operations Globally September 4, 2020: 12:00 AM EST As part of the comprehensive reorganization initiative announced last week, Coca-Cola is pruning its Africa business unit from the previous Europe, Africa & Middle East division and making it a distinct operation led by Bruno Pietracci, current Africa & Middle East business unit president. Europe will also stand on its own, led by Nikos Koumettis. The Middle East operations will be combined with Eurasia. Vamsi Mohan Thati, head of the South Pacific business unit, was appointed president of the Greater China business comprising mainland China, Hong Kong, Taiwan, Macau and Mongolia. South Korea will be paired with Japan as a single unit. Latin America, Europe, and North America will also have new operational leaders. Lastly, T. Krishnakumar, president of the India and Southwest Asia business unit, was named chairman of Coca-Cola India, and Sanket Ray, COO of the Mainland China business, was named president of India and Southwest Asia.[Image Credit: © The Coca-Cola Company] Andy Morton, "The Coca-Cola Co splits off Africa in structural overhaul", just-drinks, September 04, 2020, © just-drinks.com

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Nestlé SA To Sell China Water Business To Tsingtao August 28, 2020: 12:00 AM EST The Swiss company said the sale to Tsingtao Brewery Group, which will include local brand “Dashan Yunnan Shan Quan” and factories in Kunming, Shanghai, and Tianjin, is part of a strategic cooperation agreement with the Chinese brewer. Tsingtao will produce and market the Nestlé “Pure Life” brand in China as part of a licensing agreement. Financial details of the sale were not disclosed.[Image Credit: © Nestlé Waters North America Inc.] Sophie Yu and Brenda Goh, "Nestlé says will sell China water business to Tsingtao Brewery Group", Reuters, August 28, 2020, © Thomson Reuters

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Nongfu Spring’s Hong Kong IPO Expected To Raise $1B+ August 25, 2020: 12:00 AM EST The Hangzhou, China-based beverage maker could raise more than a billion dollars by pricing its shares as high as $2.77 in its Hong Kong initial public offering. The company, which is selling 388.2 million shares, will start trading on the Hong Kong Stock Exchange on Sept. 8. Five cornerstone investors have subscribed for stock in the sale, including fund manager Fidelity, hedge fund Coatue, and Singapore sovereign wealth fund GIC. The $1.08 billion IPO will be one of the largest in Hong Kong in 2020.[Image Credit: © Nongfu Spring] Scott Murdoch, "China's Nongfu Spring to raise $1.1 bln in Hong Kong IPO", Reuters, August 25, 2020, © Thomson Reuters

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Australia May Block Kirin Holdings Sale Of Lion Dairy & Drinks To Chinese Firm August 20, 2020: 12:00 AM EST An Australian Financial Review report citing an unnamed source says “diplomatic issues” may be behind a government decision to block China Mengniu Dairy’s purchase of Lion Dairy & Drinks, owned by Japan’s Kirin Holdings. Australia’s competition regulator approved the $429 million sales in February, but the sale is opposed by Treasurer Josh Frydenberg. The new comes against a backdrop of deteriorating diplomatic relations between Australia and China, after Canberra called for an independent inquiry into the origins of COVID-19. China, meanwhile, recently imposed dumping tariffs on Australian barley and halted beef imports from four Australian firms. China is Australia’s largest trading partner.[Image Credit: © LION] Antonia Garrett Peel, "Australian government may block China Mengniu Dairy-Lion purchase deal", FoodBev Media , August 20, 2020, © FoodBev Media Ltd

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Swire, COFCO Announce Further Investment Plans In China August 17, 2020: 12:00 AM EST Two Coca-Cola China bottling partners have announced plans to further expand production capacity and build local supply chains in the country. Swire Coca-Cola (Hong Kong) plans to put six new production lines into operation, with a total investment of 250 million yuan ($36 million) and an additional annual output value exceeding 1.7 billion yuan ($245 million). The company will also add a plastic bottle production line to its plant in central China's Hubei Province, which is expected to be operational in May 2021. COFCO Coca-Cola Beverages Ltd. (Beijing), a joint venture with Coca-Cola, is building a 270 million yuan ($39 million) factory in southwestern province of Guizhou, its first in that region. The new plant, scheduled for operation by the end of 2021, will start with two advanced PET soda production lines with an annual capacity of 170,000 tons.[Image Credit: © Swire Coca-Cola HK] "Coca-Cola continues to expand investment in China supply chain", Xinhuanet, August 17, 2020, © XINHUANET.com

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Nongfu Spring Plans $1B Public Stock Offering in Hong Kong Next Month August 3, 2020: 12:00 AM EST The Chinese bottled water maker is expected to list its shares in Hong Kong as early as September if the IPO proceeds. Hangzhou-based Nongfu Spring reported a 17.3 percent year-on-year increase in total revenue to ¥24 billion yuan ($3.4 billion) in 2019, up from ¥20 billion yuan a year ago. It also recorded a 2019 profit of ¥4.95 billion yuan, a 20.6 percent increase from 3.61 billion yuan in 2018, according to its prospectus filed in April. The company’s planned development strategies include brand building, expansion of production capacity, investment in infrastructures, and exploration of overseas market opportunities. It is finalizing the purchase of its first overseas water source and production plant, Otakiri Springs, in New Zealand.[Image Credit: © Nongfu Spring] Isabel Wang, "Chinese Bottled Water Giant Nongfu Spring Prepares for $1 Billion Hong Kong IPO in September", Pandaily, August 03, 2020, © Pandaily

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Luckin Coffee Chain Faces Punitive Actions After Financial Fraud Confirmed July 31, 2020: 12:00 AM EST After Chinese investigators confirmed that the Luckin Coffee chain, the country’s answer to Starbucks, had committed $300 million accounting fraud, the Ministry of Finance announced it would punish the company. The agency investigated two Luckin subsidiaries, as well as related companies and 23 financial institutions relating to the scandal, confirming that the coffee chain had fabricated sales of 2.25 billion yuan ($322 million) and revenue of 2.12 billion yuan ($304 million), and said it will move take punitive action that will be made public later. The scandal led to Washington tightening scrutiny of Chinese companies listed on American stock exchanges. Luckin Coffee’s business model was built on outselling  rivals by quickly expanding its outlets and offering deep discounts to build the customer base. [Image Credit: © www.luckincoffee.com] Iris Ouyang, "Beijing watchdogs to punish Luckin Coffee, related firms after confirming US$300 million accounting fraud", South China Morning Post, July 31, 2020, © South China Morning Post Publishers Ltd.

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China’s Wholly Moly Wants To Replace Rice With Whole Grains In Country’s Diet July 24, 2020: 12:00 AM EST The young Shanghai-based company has its marketing eyes fixed on the country’s younger, more health-conscious generation with its instant oatmeal made of oat bran. The company raised several million dollars from C Ventures, led by a Hong Kong billionaire, to take advantage of China’s burgeoning health food market. “China has a severe lack of wholegrain food options,” said Claire Fang, founder and chief executive. “We want to introduce [whole grains] into young people’s diet in a way that is easy for them to embrace.” The market for natural health food in China is forecast to expand to $26 billion in value by 2022, an annual rate of 12 percent since 2017. Wholly Moly, which generates 90 percent of its income from e-commerce channels, including a store on Tmall, posted sales of $15 million in 2019 and hopes to triple that this year. The company works with farms and milling factories in the Midwest and northern U.S. as well as southern Canada, because the oats harvested there are said to be more aromatic and chewier than cheaper oats planted in China or Australia.[Image Credit: © Yum Delight, Inc./WhollyMolyChina] Yujing Liu, "Health food start-up Wholly Moly aims to shake up the Chinese diet, swapping rice for American wholemeal oats", South China Morning Post, July 24, 2020, © South China Morning Post Publishers Ltd.

Domains China Business Focus Areas Sectors Food Business Marketing Geographies Worldwide Asia-Pacific China

Chinese Consumers Spending More On Healthful Snacks July 22, 2020: 12:00 AM EST 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.[Image Credit: © Nestlé] Zheng Yiran, "Consumer spending on healthy, fresh snacks rises", China Daily European Edition, July 22, 2020, © China Daily Information Co (CDIC)

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Nestlé SA Settles On Six Major Bidders For Yinlu Foods Group July 17, 2020: 12:00 AM EST 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.[Image Credit: © Yinlu Food Group Co., Ltd] "Nestlé Narrows Bidders for Yinlu Foods Unit in China", Bloomberg News, July 17, 2020, © Bloomberg LP

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Food And Beverage Giant Wahaha Ponders Billion-Dollar IPO July 3, 2020: 12:00 AM EST 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.[Image Credit: © Hangzhou Wahaha Group Co.,Ltd.] "China Beverage Firm Wahaha Said to Mull IPO Above $1 Billion", Bloomberg, July 03, 2020, © Bloomberg L.P.

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Coke’s Costa Coffee Launches Cross-Branded Coffees In China June 30, 2020: 12:00 AM EST 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.[Image Credit: © THE COCA-COLA COMPANY] Andy Morton, "Costa Coffee brews Coca-Cola-flavored coffee for China", Just-drinks.com, June 30, 2020, © Just-drinks.com

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Carlsberg Partners With 7-Eleven In Hong Kong On Special Beer Promotion June 19, 2020: 12:00 AM EST 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.[Image Credit: © Carlsberg Breweries A/S] Jenny Leung, "7-Eleven and Carlsberg open new concept store in Hong Kong", Time Out Hong Kong , June 19, 2020, © Time Out Hong Kong Company Limited

Domains China Business Focus Areas Sectors Beverages Marketing Geographies Worldwide Asia-Pacific Hong Kong

Huiyuan Juice Products Now Featured On All Three Of China’s Major E-commerce Platforms June 2, 2020: 12:00 AM EST 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.[Image Credit: © Myriam Zilles from Pixabay] Guan Yu Lim , "Packs a punch: Huiyuan Juice embraces new retail models as it seeks to hold on to top ranking", Beverage Daily, June 02, 2020, © William Reed Business Media Ltd

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Brazil’s Citrosuco NFC Orange Juice To Launch In China June 1, 2020: 12:00 AM EST 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.[Image Credit: © Citrosuco] Hope Lee , "Brazil’s Citrosuco introduces new orange juice to China", IEG Vu, June 01, 2020, © IHS Markit

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Danone’s New Plant-Based Sports Drinks, Powders Debut In China May 21, 2020: 12:00 AM EST Danone is targeting sports enthusiasts and exercise fans in China with a new plant-based sports nutritional beverage Vega One Sport and other Vega One plant protein powders sold online. Vega One has no artificial colors or artificial sweeteners, carries a U.S. non-GMO Certification, and has passed NSF Certified Sport international sports banned substance testing. Danone depends on China for at least ten percent of its global sales achieved a revenue growth of around 2.6 percent worldwide in 2019, The company hopes to increase plant-based sales worldwide from $2.19 billion in 2019 to around $5.5 billion by 2025. According to Nielsen, Danone led the world’s plant-based products in 2018.[Image Credit: © Danone S.A.] Hope Lee, "Danone launching plant-based sports beverages in China", ihsmarkit.com, May 21, 2020, © IHS Markit

Domains China Business Focus Areas Sectors Beverages Market News Geographies Worldwide Asia-Pacific China

Coca-Cola Expands High-Speed Bottling Capacity In Southwest China May 19, 2020: 12:00 AM EST Coca-Cola continues to lay the groundwork for expansion in the Chinese market with the opening of a high-capacity bottling facility in Chengdu, capital of Sichuan province. The new COFCO Coca-Cola Beverages Ltd (CBL) facility can make 120,000 cans an hour, making it the fastest fully automatic production line in the world, according to the company. The current industry average is between 66,000 cans and 90,000 cans every hour. The bottling line is also the only automatic production line in the global Coca-Cola system that can produce a variety of different packaging specifications at the same time. The company's first plant in China was built 21 years ago in Chengdu, where three new lines were built last year. CBL plans to accelerate production when the COVID-19 pandemic eases, increase investment in equipment renewal and technical transformation, and optimize and upgrade industrial capacity.[Image Credit: © THE COCA-COLA COMPANY] "Coca-Cola sets up fastest bottling factory", English.Eastday.Com, May 19, 2020, © English.Eastday.Com

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Coke Sets Up JV With Chinese Dairy Giant To Sell Chilled Milk May 13, 2020: 12:00 AM EST Coca-Cola has set up a joint venture with China’s Mengniu Dairy Co to produce and sell chilled milk in the country. The JV is “a reaffirmation of its long-term commitment to the Chinese market” the company said. It will look to make full use of the advantages of both companies, including dairy development and processing techniques, brand influence, and distribution channels. The partnership will create a portfolio of consumer-centric beverages, according to a Coca-Cola statement.[Image Credit: © The Coca-Cola Company] "Coca-Cola, Mengniu's JV to sell chilled milk", ECNS.cn/China Daily , May 13, 2020, © Chinanews.com

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Luckin Coffee Fires CEO, COO Over Fabricated Sales Reports May 12, 2020: 12:00 AM EST Following an ongoing internal investigation that uncovered evidence of fraud by two of its top executives, Beijing-based Luckin Coffee Inc., a coffee company and coffeehouse chain with 4,507 locations in China, announced changes to its board of directors and senior management, effective May 11. The investigation shed light on “fabricated transactions described in the press release issued by the company on April 2, 2020.” Luckin fabricated sales last year of as much $310 million, according to a Bloomberg report. The company terminated CEO Jenny Zhiya Qian and COO Jian Liu, and forced their resignations from the board. The company said it also suspended six other employees “who were involved in or had the knowledge of the fabricated transactions.” [Image Credit: © www.luckincoffee.com] "Luckin Coffee Announces Changes to Board of Directors and Senior Management", Luckin Coffee , May 12, 2020, © Luckin Coffee Inc.

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Coke’s Costa Coffee Chain Will Introduce New RTD Coffees In China This Year April 30, 2020: 12:00 AM EST U.K.-based coffee chain Costa Coffee will debut its RTD Black Americano and Classic Latte drinks this year in China, in what is seen as a crucial market for the Coca-Cola-owned firm. The launch marks an important step in its multi-category expansion strategy, which was accelerated after Coca-Cola acquired the company last year. According to Chief Operating Officer Shakir Moin, China is a priority target because the coffee market is growing, with RTD coffee expected to increase the fastest though it is increasingly competitive. The mission is to offer busy consumers both high-quality coffee and convenience. The company plans to distribute the RTD products into Tier-1 and 2 cities first, which Moin cited as “high-potential markets,” before gradually entering other cities. The products will be available on e-commerce platforms, as well as in retail channels such as hypermarkets, supermarkets, convenience stores, traditional grocery stores, and vending machines in the country.[Image Credit: © THE COCA-COLA COMPANY] Guan Yu Lim , "Coca-Cola-owned Costa Coffee seeks to crack China’s booming ready-to-drink market", Beverage Daily, April 30, 2020, © William Reed Business Media Ltd

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Nestlé Unveils Q-Cup Machine That Makes “Superfood” Smoothies, Shakes April 27, 2020: 12:00 AM EST Nestlé has launched a new Q-cup machine that enables people to create healthful drinks from natural ingredients at home or in the office. nesQino, launched in China, comprises a silent, digitally connected Q-cup machine, superfood sachets, and three base sachets: smoothie, oat shake, and milk shake. Users can make 21 “superfood” drink recipes designed by nutritionists using fruits, vegetables, nuts and seeds, roots, microalgae, and probiotics. Complementary base sachets are made from dairy milks, cereals, and plant-based ingredients. The company uses advanced flash-freezing and drying techniques, and patented powder technologies, to naturally preserve ingredients without additives, preservatives, artificial colors, or flavors. The packaging is recyclable in China.[Image Credit: © Nestlé] "Nestlé launches nesQino to create healthy, customizable superfood drinks", Nestlé , April 27, 2020, © Nestlé

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Coca-Cola Says It’s In China “For The Long Term,” Coronavirus Or Not March 15, 2020: 12:00 AM EST Coca-Cola’s top executive for China and Korea says the company is committed to the region, no matter what happens with the coronavirus.  “We are here for the long term,” says Curt Ferguson, who notes that China is the company’s next biggest market. “We’re here to invest. We’re here to build it.” China is Coca-Cola’s third largest market in terms of unit case volume. The company sees great opportunities in this important market and will continue to invest for long-term growth, Ferguson said. The company’s annual report noted that the Covid-19 virus situation continues to evolve, “and the company expects to provide more information during its next earnings call in April.” Ferguson, president of Coca-Cola Greater China and Korea, thanked the Chinese government for their quick and decision action in tackling the coronavirus. “I just wanted to give our appreciation to all the first responders out there – the nurses and doctors that kept us all safe. You kept us strong.[Image Credit: © The Coca-Cola Company] Dave Makichuk , "Coca-Cola boss: We’re sticking with China all the way", Asia Times, March 15, 2020, © Asia Times

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