#记录我的2024#前几年, the listing of Nongfu Spring has caused heated discussions in the market, and even the head of Nongfu Spring, Zhong Sui, has been the richest man in China many times, and now another drinking water giant has embarked on the road to listing, this is Cestbon's parent company China Resources Beverage, selling 14.6 billion bottles of water a year can replicate the miracle of Nongfu Spring?
1. Even the parent company of Cestbon is going to be listed?
According to the 21st Century Business Herald, China Resources Beverage (Holdings) Co., Ltd. (hereinafter referred to as "China Resources Beverage") submitted a listing application to the Hong Kong Stock Exchange, and the joint sponsors are Bank of China International, CITIC Securities, Bank of America Merrill Lynch, and UBS Group.
According to the CIC report, CR Beverage is one of the earliest enterprises in China to specialize in the production of packaged drinking water, and has grown into the second largest packaged drinking water company in China and the largest drinking water company in China. In terms of regional distribution, CR Beverage's packaged drinking water products have the highest market share in the packaged drinking water market in China's six major provinces (i.e., Guangdong, Hunan, Sichuan, Hainan, Guangxi and Hubei).
According to the above report, the retail sales of CR Beverage's "Cestbon" brand drinking purified water products reached 39.5 billion yuan in 2023, making it the No. 1 brand in China's drinking water market, and it sold more than 14.6 billion bottles of "Cestbon" brand of water products in 2023.
CR Beverage mentioned that the consumption of packaged drinking water and beverages is affected by seasonal changes, and the second and third quarters of each year usually usher in the peak sales season when the weather warms up every year. At the same time, CR Beverage usually has a low season in the first and fourth quarters, and the revenue and capacity utilization rate in these quarters are generally low, which will have a negative impact on the company's profitability in the same period.
CR Beverage mainly has a product portfolio of 13 brands, including "Cestbon", "Zhiben Qingrun", "Honey Water Series", "Holiday Series" and "Flavored Tea", with a total of 56 SKUs. According to the CIC report, in terms of retail sales in 2023, CR Beverage ranks among the top 10 in the Chinese market in terms of market share in core ready-to-drink soft drinks such as tea beverages, fruit juice beverages and coffee beverages, and ranks first in the Chinese chrysanthemum tea beverage market and second in the flavored water market.
2. Can selling 14.6 billion bottles of water a year replicate the miracle of Nongfu Spring?
Cestbon's parent company, China Resources Beverage, announced plans to go public, which has attracted a lot of attention in the Chinese beverage market. As the second largest brand in China's packaged drinking water market, Cestbon's listing is undoubtedly an affirmation of its remarkable achievements in the market in the past few years. However, in the face of fierce market competition and changing consumer demand, can Cestbon replicate the success of Nongfu Spring, how should we analyze it?
First of all, the listing of CR Beverage can be said to be the inevitable result of market development. In the past few years, China's drinking water market has continued to grow rapidly, and consumer demand for high-quality drinking water is increasing. In such a market environment, CR Beverage has achieved rapid growth by virtue of its brand advantages and product diversity. Previously, Nongfu Spring's listing set a successful example for the industry, and the soaring market value of Nongfu Spring has undoubtedly brought inspiration and pressure to other companies in the same industry. For CR Beverage, listing is not only an attempt by the capital market, but also an important means to enhance brand influence and expand market share.
Secondly, CR Beverage has a diversified brand portfolio, including 13 brands such as Ben Qing Run, Honey Water Series, Holiday Series and Flavor Tea Affair, which can diversify risks and expand market coverage. The diversification of the product line not only enhances the company's market adaptability, but also helps to form synergies and increase consumer stickiness, which is an important plus point for attracting investors. At the same time, it means that the company does not rely solely on a single source of income, but has multiple profit points, which is beneficial for listed companies.
The listing can not only help CR Beverage integrate internal and external resources and strengthen its brand image, but also provide sufficient financial support for subsequent diversified development and new product research and development. In today's rapidly evolving beverage market, continuous product innovation and broadening sales channels are key elements to stay ahead of the curve
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Third, the current competition in the beverage industry is becoming increasingly fierce, especially in the context of improved health awareness and consumption upgrading, and consumers' demand for beverages is more diversified. This requires enterprises to continuously carry out product innovation to meet market demand, and at the same time, they must continue to expand sales channels and increase marketing efforts. The funds raised from the IPO can help CR Beverage to a large extent accelerate this process, thereby improving market competitiveness. With the support of capital, the company can invest more resources in product research and development, brand promotion and channel construction, which pave the way for the company's long-term development.
Fourth, despite Cestbon's considerable sales and the strong background of China Resources Beverage, it is not easy to fully replicate the listing myth of Nongfu Spring. Nongfu Spring is unique in the market not only because of its "nature porter" concept and unique protection of water sources, but also because of its flexible and creative marketing methods, such as online and offline joint promotion, cross-border IP cooperation and brand storytelling. All of this has enabled Nongfu Spring to quickly establish a unique brand culture, which in turn translates into strong market influence and consumer loyalty.
For Cestbon, although it has a leading position in the field of pure water, how to find new growth points and break through bottlenecks in an increasingly saturated market environment will be the decisive factor for whether it can successfully replicate the success of Nongfu Spring. At the same time, in the face of changes in the market pattern, Cestbon also needs to make more efforts in product differentiation, quality upgrading, green and sustainable development, especially in the beverage business to seek a breakthrough in the short board, enhance the competitiveness of non-bottled water products, in order to be invincible in the fierce market competition.