Chinese Soft Drinks Industry is Expanding for Foreign Investment

Published By : 23 Jun 2015 | Published By : QYRESEARCH

Chinese soft drinks industry is indicating fast expansion. Soft drinks are increasing in popularity and demand is accelerating. The upscale in living standards in the mainland has driven the demand for beverages such as soft drinks. Coca-Cola has observed this market development and has offered to purchase Xiamen Culiangwang Beverage Technology the protein drinks maker for US$400 million. 71% of profits were earned by Culiangwang  in the financial year ending in April from branded drinks. The company is located in Fujian province and has an extensive range of protein drinks including walnut variants of plant based protein drinks, green bean and red bean.

Coca-Cola’s potential takeover is aimed at the Chinese side of the company’s technique to make wide ranging beverage products available to Chinese consumers. The protein drinks that are plant based are a fast expanding category in mainland China. The spokesperson for Coca-Cola Petro Kacur, stated that China is a major market and important to the beverage group. 

The soft drinks company had failed in 2009 so the procurement is a representation of return to dealing with China. Chinese officials obstructed the deal of US$2.3 billion declaring that it would hinder competition. Xiamen is a highly favored destination and attracts foreign companies that want to invest in businesses from across the globe. 

Nestle has focused R&D units in Xiamen to understand the local consumer market. Two new R&D units in Dongguan and Xiamen are set up to support Nestlé’s combined undertaking  with 2 Chinese food companies.  The Xiamen based unit concentrates on China’s ready-to-drink rice congee and peanut milk drinks. Nestlé’s investment shows the company’s resolve to attain local knowledge and use the results on a worldwide scale. China’s soft drinks market shows signs of great growth opportunity for research and investment.
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