Beverage plays turning big business in China

Companies accelerate expansion plans as carbonated, functional and imported mineral water with health benefits gain in popularity

More Chinese consumers are taking to new premium water products－carbonated, functional and imported mineral water with health benefits－this summer, fueling heated competition among international and local players.

Global beverage and food giant Nestle launched its Italian high-end water brand Acqua Panna last month in China. In the same month it rolled out Nestle-branded sparkling water with multiple flavors for younger consumers.

Since its introduction to the Chinese market in 2012, another highend Nestle brand Perrier has continuously achieved double-digit growth, boosted mostly by sales generated from online platforms and catering channels including bars and cafes, Nestle said.

The green-bottled carbonated mineral water brand has been a growing presence in the majority of first and second-tier cities in China, online and offline, said Phillip Chilton, international brands business director of Nestle Water.

The company has continued to expand its presence in new markets including Chengdu, Sichuan province, and Wuhan, Hubei province, he added.

"The strong growth of Perrier in China has mirrored consumers' emerging positive pursuit of healthier and high-end water, as well as a more pleasant drinking experience in recent years," Chilton said.

Natural sparkling mineral water has met demand from younger consumers in taste preferences and their rising awareness of health and wellness, he added.

Nestle's accelerated moves to bring more high-end water brands to China are in line with the company's shifting focus on its iconic international water brands, especially its leading premium mineral water brands and functional water products.

According to Nestle, the aim is to allow strategic acquisitions to grow in this category, while pledging to make its entire global water portfolio carbon neutral and replenish associated watersheds by 2025.

Mark Schneider, Nestle CEO, said in June, "This strategy offers the best opportunity for long-term profitable growth in the category, while appealing to environmentally and health-conscious consumers."

Schneider said the company remains fully committed to growing its iconic international brands, including Perrier, S.Pellegrino and Acqua Panna.