Chinese popular sparkling water brand Genki Forest (Chinese name: Yuanqisenli) has invested 130 million RMB (US$20.1 million) to build a yogurt production line in Chuzhou city, Anhui Province, which is expected to officially put into production in January this year. The annual production capacity of the yogurt production line will reach 9 million servings of yogurt with annual revenue of 1 billion RMB (US$154.4 million).
Founded in 2016, Genki Forest sells flavored sparkling water and has found impressive success in China’s competitive market. Genki Forest has achieved a valuation of US$2 billion, tripling its worth in 9 months. The company’s sales volume exceed 800 million RMB (US$123 million) in the first half of 2020, and the sales volume in May last year was equivalent to that of the whole year of 2019. During the e-commerce shopping festival “6.18”, the brand surpassed Coca-Cola, ranking #1 in the drink category. Genki Forest catch the trend of sugar-free soda and positioned itself as a healthy, fresh alternative to other sparkling drinks. The brand claims “0 sugar, 0 calories, 0 fat” which went viral among younger generations that have found a great fit between the brand and their consumers’ healthy lifestyle.
Beihai Ranch, Genki Forest’s yogurt brand, the first yogurt production line, will mainly produce and supply yogurt products of Beihai Ranch. The company will spend 80 million RMB (US$12.35 million) from the investment on production equipment such as a milk collection system, raw milk tank, milk purifier, and raw milk (cooling, concentration, pasteurization). The facility can process more than 200 tons of fresh milk per day.
Building its yogurt production line, will enhance significantly the ability of the company to engage in product innovation, better control of its core products, and achieve a faster market response. Additionally, it is also helpful for new product testing, process optimization, and improving the market competitiveness of subsequent new products. At present, the brand has already different yogurt products such as functional yogurt, basic yogurt, flavored yogurt, and more. Up to now, Genki Forest is available in over 80,000 convenience store chains and 100,000 offline stores, many of which are also available for online shopping.
Consumers ask for sugar-free but also good taste yogurt products as their first preference when they wish to lose weight, keep fit, or satisfy their tastebuds. Genki Forest has been successful with its sparkling water drinks; yogurt is a brand-new segment for the company, and we will keep following up on this brand and its new product line.