$86m factory now operational as distribution broadens
Beijing and beyond: Capri-Sun expands operations in China
Capri-Sun is already produced and distributed in China, but so far business has has been limited to the Beijing area.
“For Capri-Sun, the recent years in Beijing have been very important in generating valuable insights,” a Capri-Sun spokesperson told BeverageDaily.com
“We learned a lot about the Chinese market, competitors, and the needs and demands of consumers. Combining this with the expertise and distribution power of Reignwood Group China, we are now ready to roll out Capri-Sun on a broad scale.”
Huairou District facility
With its Reignwood Group partnership, Capri-Sun will increase production via a €80m ($86m) facility in Huairou District, Beijing that started operations earlier this year.
The plant has an annual capacity of 650m drinks pouches with four production lines for 200ml straw pouches and one line for 330ml spouted pouches. Distribution of products will focus on the east and central regions of China in 2015, with nationwide distribution planned for 2016.
Bestshin Beverages (Beijing) - owned by Reignwood Group - will be responsible for Capri-Sun production and sales with its 10,000-strong sales network in China.
Capri-Sun says China is one of the largest and most prosperous markets in the world, particularly in terms of its target market, with more than 230m children across the country.
“The demand already exists, the question is, is it fulfilled sufficiently?” said the spokesperson. “For us, a kids' juice drink should not only be loved by kids, but also be trusted by moms.
“Therefore, it has to be of high quality, made from natural ingredients, have a great taste - and it should be fun! Capri-Sun combines all these values, by being served in colorful pouch packaging which is light and robust - idea for any occasion. This is new in the Chinese market.”
Reignwood Group added it aims to "fill a niche in the Chinese beverage market, by establishing and dominating the category of children's juice drinks."
Capri-Sun has four flavors available in China: orange, white grape, pear, and peach & apple.
It says the varieties were chosen to cater to regional preferences, and adds its drinks do not contain artificial sweeteners, flavors, colors or preservatives.
“We will first start with our classic 200ml straw pouch,” the spokesperson said.
“It is available as single pouch as well as in a multipack of six. For the next step we will launch the reclosable 330ml pouch.”