The nation’s soft drinks market shrank because of the sluggish demand in the first half of the year, industry analyst said. Sales in the beverage industry continued to slow down, rising only 2 percent year-on-year in the first half of 2016, according to Nielsen data…Full Article: ECNS.cn Aug 2016

Key Point

  • From January to June 2016, the Hong Kong-listed Uni-President China recorded revenue of CNY 7.5 billion (~US$1.12 billion) from its beverages business, an 8.2% decline year-on-year. During the same time period, Hangzhou Wahaha Group continued to promote its yogurt products to young adults and teenagers.

ChinaAg Comments

  • In 2014, Wahaha’s fruit yogurt drink, Nutri-Express, suffered from food safety allegations that stated the product had quality issues and overstated its health benefits. During the same year, Uni-President China Holdings and Want Want China Holdings both reported declining profits.
  • From 2013 to 2014, Wahaha’s reported revenue fell from CNY 78.3 billion (US$12.5 billion) to CNY 72 billion yuan (US$11.5 billion).
  • From 2012 to 2013, according to Wahaha, the company’s annual sales revenue increased 23% to CNY 78.3 billion (~US$12.6 billion). The 2013 figure would be the beverage company’s high watermark.
  • From 2000 to 2013, China’s carbonated beverage sales share of the country’s total beverage market declined from 36% to 25%.
  • Founded in 1992 and headquartered in Shanghai, Uni-President China, subsidiary of Uni-President Enterprises Corporation (HKG:0220), is a producer and distributor of various beverage and processed food products. Uni-President China controls numerous subsidiaries in mainland China including companies based in Shenyang, Harbin, Guangzhou, Fuzhou, Beijing, Wuhan, Nanchang, Kunshan, Hefei, Chengzhou, Chengdu, and Xinjiang.
  • Founded in 1987 in Zhejiang province, Wahaha (the sound of laughter in Chinese) is China’s largest beverage company. The company has over 150 subsidiaries in 29 provinces, with total assets of 30 billion yuan [US$4.83 billion] and 30,000 employees (as of early 2013). The company produces milk drinks, carbonated soft drinks, juice drinks, tea drinks, health-care foods, canned foods and bottled drinking water. Zong Qinghou is the founder, Chairman and CEO of the company.

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