Guizhou’s rich reserves of water are helping the southwestern province attract investors from both home and abroad. A total of 266 beverage companies such as San Benedetto from Italy and Chinese brand Wahaha participated in the 1st Guizhou (Tongren) International Natural Drinking Water Expo 2016, which ended on Monday [21 November 2016]…Full Article: China Daily Nov 2016

Key Points

  • In February 2016, Fujian Haocaitou Food’s new facility in Guizhou Proivnce began producing yogurt (drinks), pastries and candies. Another new Haocaitou factory is slated to be put in operation in 2017.
  • In 2015, according to the Deputy Director of Guizhou’s Economic and Information Commission, the province’s 727 bottled water companies produced 3.28 million metric tons of bottled water, making it China’s 7th largest bottled water producer.

ChinaAg Comments

  • In January 2016, China’s State Council published guidelines on instituting a tiered pricing system for water usage. These guidelines included stipulations that cash crop farmers and livestock companies would be charged a higher price based on their respective goods garnering higher values in the market place. Additionally, prices for groundwater would be higher than surface water if the former is in low supply.
  • In November 2015, the Tibetan government announced plans to increase the region’s bottled drinking water output to 5 million MTs annually by 2020. By 2025, Tibet will reportedly have five major bottlers (i.e. > 1 million MTs annual capacity) of natural drinking water.
  • In 2014, China’s bottled water market totaled US$18.5 billion in retail sales, behind only the USA at US$18.8 billion. The top Chinese bottled water companies at the time were Ting Hsin International Group (see Tingyi – HKG:0322) at a 12% market share, Yangshengtang (see Nongfu Spring) at 11.4%, China Resources Enterprise (C’est Bon brand) at 10.8%, Hangzhou Wahaha at 10.8%, and Coca-Cola at 5.6%.
  • In May 2013, Chinese water bottlers were pushing for a national unified standard for bottled water. During the same month, Beijing officials ordered Nongfu Spring (see Yangshengtang) to stop production of its 19-liter barrel drinking product over quality issues. According to Nongfu Spring, they used the water quality standard (#DB33833) of Zhejiang province, which covers 57 quality measures. At the same time, Fujian province has 28 quality measures, Hunan province 37, Chongqing has 25, and Guangdong has 40 measures.
  • In April 2013, a rival bottle water company based in Guangdong province claimed Nongfu Spring produces substandard water.
  • Founded in 1993 and headquartered in Hangzhou, Zhejiang Province, Yangshengtang (Yang Sheng Tang) is a health care product manufacturer whose product line includes vitamins, nutritional supplements, protein powder, and beverages. Founded in 1996, Nongfu Spring is the bottled water division of Yangshengtang. Nongfu Spring’s product line includes bottled water, fruit water, vitamin water, tea, and juice.
  • Founded in 1985 and headquartered in Jinjiang, Fujian Province, Fujian Haocaitou Food is processed food manufacturer whose product line includes yogurt drinks, candy (gummy, jelly, lollipops, chocolate), and baked goods.

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