An investment company with links to Louis Vuitton is venturing into the Chinese plant-based milk market . L Catterton. the consumer-focused investment firm has announced a significant investment in Viee, a leading beverage company in southwestern China known for its plant-based drinks.
Viee, established in 1992, has carved out a niche in the Chinese beverage market with its drinks made predominantly from peanuts and walnuts. These beverages are highly popular in the Sichuan and Chongqing regions, known for their spicy cuisines.
Source: BSG-VIEE
The drinks serve as effective spice and grease neutralizers and have become essential accompaniments to the local fare. With their nutritious, additive-free composition and great taste, Viee's products have become top sellers in the non-carbonated, non-alcoholic beverage segment in the region.
L Catterton's investment aims to enhance Viee’s brand presence and expand its market reach beyond its stronghold in Sichuan and Chongqing to adjacent provinces and eventually across China.
The Chinese beverage market, especially for drinks consumed with food, is slated to grow significantly, with projections reaching around $60 billion by 2028. This growth is driven by an increasing preference for dining out and food delivery services over home cooking, as well as a rising demand for healthier, natural ingredient-based beverages among younger consumers.
Scott Chen, managing partner at L Catterton’s Asia fund, says Viee has a strong customer base, vertically integrated supply chain, and robust distributor network. “The company has not only developed drinks which have become fairly ubiquitous in the region (but also) earnings have been on a clear uptrend and hit a record high in 2023, attesting to consumers’ enduring demand for Viee through market cycles", says Scott Chen.
Source: BSG-VIEE
Yawen Guo, a representative of Viee's founder, says Viee is looking forward to working with L Catterton, citing the firm's deep understanding of the industry and a comprehensive value creation plan tailored for Viee.
L Catterton's track record in building successful beverage brands globally, with investments in companies like Chi Forest, Glaceau Vitaminwater, and Sweet Leaf Tea, demonstrates its expertise in the sector.
This strategic move into the plant-based beverage market through Viee represents an ongoing shift for the investment company, aligning with contemporary consumer trends towards healthier and more sustainable food and drink options.
For more information, visit the official sites of L Catterton and Viee.
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