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Fast-rising sugar-free beverage brand Beijing Genki Forest Beverage
Co Ltd has built its first factory in Chuzhou, Anhui province, producing
its milk teas, carbonated water and functional drinks. The factory's first phase has three production lines, with a maximum
production capacity of 450 million mainly 500-milliliter bottles per
year. Construction on the first phase was completed last month and products have already come off the assembly line in June. The company, since its founding in 2016, quickly gained attention
from consumers, with a presence in 53,286 convenience stores across
China and the support of 131,375 offline retailers while expanding to
more than 11 overseas markets. It plans to start production at two overseas original equipment manufacturers in the near future, the company said. Bing Qian, chief quality officer of Genki Forest, said they would
continue to adopt high quality ingredients and advocate healthy
lifestyles through their products. Meanwhile, accurately understanding consumer preferences and
transferring such knowledge into innovation and production capacity－as
well as making products available at places convenient for consumers－are
key for the company to grow quickly, Bing said. Kantar Worldpanel China said the beverage sector has marched into
the sugar-free era, with sales of low-sugar and sugar-free drinks up 13
percent last year. The overall beverage sector grew only at 0.6 percent
in terms of sales. Jason Yu, managing director of Kantar Worldpanel China, said
self-owned manufacturing capacity will afford more control and reduce
logistics costs as well as improve efficiency. The brand has been
focusing on the convenience store channel, leveraging the expansion of
this channel in first and second-tier cities. Its penetration to social networking platforms and recommendations
from online influencers have further expanded access to younger
consumers, Yu said. The rapid surge of Genki Forest in the beverage sector is mainly
driven by the proper positioning of its bottled carbonated water
products, said Li Chen, deputy director of the food and beverage sector
at Mintel, a United Kingdom-based research firm. "Genki Forest products have unleashed a strong desire for sugar and
calorie-free carbonated water among younger consumers," Li said. "Genki availability within retail channels and its easy-to-carry package have brought it closer to young people," Li added. Genki case has illustrated that, despite strong dominance by
established brands, a new disrupter is able to rise, boosted by quick
innovation and accurate positioning to constantly attract consumers and
adapt to market changes, she said.
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