Capri Sun pouching profit by slaking kids' thirst
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E-mail China Daily, April 18, 2016
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Representatives of Capri Sun, a German company that makes wholesome fruit juices for kids, at the launch of the company's products in Beijing. [Lan Shan for China Daily] |
Capri Sun, a German company that makes wholesome fruit juices for kids, will speed up its expansion in the maturing China market as it sees potential for great profits.
For Capri Sun, which is sold in foil pouches, children aged between six and 14 are target consumers.
Following China's new policy that encourages married couples to have two children as against one in the past, the juice maker is bullish on the long-term growth of the China market.
"The second-child policy will not have an immediate impact on us, but in the next five years, it will definitely help drive our sales growth," said Chen Tao, managing director of Capri Sun China.
Founded in 1969, Capri Sun entered China in 2005. But it did not have widespread distribution channels until it collaborated with Reignwood Group, which distributes energy drink Red Bull in China.
Last year, Capri Sun launched its own operations and sales in supermarkets, shops and cinemas.
China has about 300 million children aged under 14, who constitute a niche multi-beverage market with significant potential for growth.
The children's milk market in China is worth more than 4 billion yuan ($613 million), according to a report by chinabgao.com, a website that specializes in market analysis.
In 2015, Capri Sun's sales reached 16,000 tons in China, or 80 million pouches. It aims to reach 120,000 to 200,000 tons in the next five years.
"As we're a latecomer, we will increase our marketing and advertising efforts in China. Currently, we've focused on enhancing the popularity of our products, and we will explore more cooperation opportunities with e-commerce channels in the next few years," Chen said.
In China, the most important reason for a child to like a beverage is its flavor. Other factors include nutrition, good packaging, and advertising, respectively, according to the report of chinabgao.com.
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