China’s Beverage Industry Is Strong, Growing

New players in China’s beverage manufacturing industry, coupled with rising exports in alcohol, drink, and refined tea, contributed to rising revenue and profit, according to a China-based consulting firm. Profit rose 25.2 percent in the first five months of 2018 to $12.5 billion, while revenue rose 10.8 percent year-on-year to around $99.6 billion. The industry’s ongoing structural reform was a major contributor to success, according to the consultant. New players include fruit grower Pagoda, which has collaborated with Sichuan Chia Meei, a subsidiary of Taiwan fruit business firm Chia Meei. Pagoda’s non-fruit concentrate (NFC) juices, sold under the brand “Hou Guo Zi,” reaped 6.6 million within three days of launch. Another China fruit grower, Chu Cheng Company, is expected to launch NFC products by the end of the year. Dairy milk producers, including Yili and Mengniu, are doing well, though trailing Nestlė and Danone. Jia Duo Bao (JDB), known as China’s Coca-Cola, expects two-digit sales growth this year.