China’s plant-based beverage company Sichuan Viee Beverage Food Co. (Viee) has received a strategic investment from private-equity firm L Catterton.
Financial details were not disclosed.
L Catterton said it will partner with Viee to “solidify the brand’s iconic profile and foothold in its home region of Sichuan and Chongqing”, as well as grow its presence in adjacent provinces and expand across the rest of the country.
Viee’s range of drinks, made predominantly from peanuts and walnuts, are intended to complement spicy foods typical to the Sichuan and Chongqing regions.
Just Drinks understands that Viee’s products are sold both on- and off-trade, with the split being fairly even.
Viee founder representative Yawen Guo said: “L Catterton has a keen understanding of our industry and business. We are impressed by the comprehensive value creation plan that the firm has devised for Viee and are excited about executing it in partnership with them.
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“By working together to solidify our lead in Sichuan and Chongqing and further penetrate the market in adjacent provinces as well as the rest of China, we believe that we will be better able to enrich our target customers’ lives, providing them with tasty and nutritious beverages which they enjoy.”
Established in 1992, the business claims to be the largest plant-based beverage company in western China. Viee’s portfolio also includes a range of oat and soy milk products with a variety of flavours such as ginger, jasmine, osmanthus, pine nut and sesame.
Scott Chen, managing partner at L Catterton’s Asia fund, praised Viee’s “vertically integrated supply chain and wide network of distributors with whom it has longstanding relationships”.
He added: “Earnings have been on a clear uptrend and hit a record high in 2023, attesting to consumers’ enduring demand for Viee through market cycles. The company has a proven management team, and we look forward to working closely with it to unlock further value.”
L Catterton is a consumer-focused investment firm, managing approximately $35bn of equity capital across private equity, credit and real estate. The firm has made more than 275 investments in consumer brands globally.
Last week, a GlobalData report showed that soft drink consumers in China have demonstrated a growing preference for healthier beverages which is now a key driver for the category.
Just Drinks’ parent group reported that low-calorie soft drinks grew in volumes by 39.6% annually in 2023 in China as consumers opted for low-sugar drinks.
Meanwhile, fruit-based categories, juice and nectars registered growth rates of 9.6% and 11.8%, respectively, which were considerably higher than carbonates at 1.5%.
