China Food

Just now, Yuanqi forest official announced the completion of a new round of financing, with an estimated value of US $6 billion! Money will be spent on these things

Yuanqi forest’s value has soared again.

Just now, the local start-up beverage brand, which has been rising fiercely in recent years, announced that it has completed a new round of strategic financing, with a post investment valuation of US $6 billion (about RMB 39.3 billion). In this round of financing, Sequoia China, the old shareholder of Yuanqi forest, and Huaping investment and l catterton, the new shareholders, participated in the lead investment, while Temasek, several old shareholders, such as Gaorong and Longhu, continued to follow the investment.

This means that, compared with the last round of financing valuation of about US $2 billion, the valuation of Yuanqi forest has increased nearly three times in less than one year, and it is less than five years since the establishment of Yuanqi forest company.

Let’s take a concrete look.

“Product year”

The relevant person in charge of Yuanqi forest told xiaoshidai today that the financing amount of this round of Yuanqi forest will be mainly used in four aspects: 1) carrying out overseas M & A and introducing more overseas high-quality products; 2) building beautiful factories with higher quality and more environmental protection in China; 3) increasing investment in scientific and technological research and development; 4) continuing internationalization.

This also shows the follow-up development path and competitive strategy of Yuanqi forest.

First of all, it can be expected that this local beverage company will further expand its “new lineup”. According to xiaoshidai, Tang Binsen, founder of Yuanqi forest, once said that 2021 will be the “product year” of Yuanqi forest. There are still 95% of Yuanqi forest’s products that have not been launched, and the R & D cost and R & D personnel investment will reach three times of 2020.

“We will put more energy and cost into the formula upgrade and new product development.” Yuanqi forest said today that it will carry out product research and development based on the current consumption trend and the insight of young people’s preferences, continue to strengthen category innovation and the construction of supply chain production base, and seize the subdivision opportunity of food and beverage racetrack.

Building a stronger product “moat” is really the key to the sustainable growth of the forest, which is popular with sugar free soda bubble water.

Xiaoshidai has introduced that Yuanqi forest has sprung up in a wave of “0 sugar, 0 calorie, 0 fat” beverage boom. Previously, many beverage companies have introduced sugar free tea and carbonated drinks using sugar substitutes, but some of the most common sugar substitutes are lacking in taste, such as bitter and astringent aftertaste. The success of Yuanqi forest sugar free bubble water is inseparable from erythritol. It is also one of the earliest brands in China to use this kind of sugar to produce drinks on a large scale. The latter is advertised as having better taste and tolerance, but the price of raw materials is also relatively higher.

However, since erythritol is not the patent of Yuanqi forest itself, it means that its success is not “non replicable”. As a matter of fact, there are more and more products like soda and water without bubbles on the market. For example, the new tea chain Xicha launched the flavor bubble water of “0 sugar, 0 calorie, 0 fat” which also uses erythritol last year.

If raw materials are only a small angle, the bigger proposition for Yuanqi forest development also includes how to create more large single products and how to achieve sustainable growth. In the eyes of many competitors and the “spur” of capital, Yuanqi forest is running all the way.

“In terms of the whole business scale, our plan in 2021 is to reach 7.5 billion yuan of sales.” Yuanqi forest tells xiaoshidai today. This means that the growth target of Yuanqi forest will not only double this year. According to official sources, in 2020, the sales volume of Yuanqi forest will be nearly 3 billion yuan.

As a matter of fact, relying on the vitality of the forest of sugar free bubble water and burning tea in the beverage market, it has been gradually expanding the layout of the main categories of beverages. Last year, for example, Yuanqi forest launched its first juice drink sub brand “full score” and its first energy drink sub brand “alien”.

Up to now, Yuanqi forest has more kinds of beverage products, including sugar free low-fat milk tea, sugar free yogurt, sugar free energy drinks, juice bubble water, etc.

Self built capacity and overseas layout

Secondly, after this financing, it is expected that Yuanqi forest will further increase its self built capacity.

According to xiaoshidai, after the completion of the first self built plant in Chuzhou, Anhui last year, Yuanqi forest Chuzhou phase II plant and new plants in Zhaoqing, Guangdong and Xiqing, Tianjin will be completed and put into production in April this year. Among them, Guangdong Zhaoqing factory will also be the first “Transparent Factory” without walls in China’s beverage industry. The factory will be integrated with surrounding communities and open to all consumers.

“After the new plant is put into operation, the total capacity of Yuanqi forest will reach 110 million boxes this year.” The company said today that at that time, Yuanqi forest will realize the base layout of “north, middle and South” covering Beijing Tianjin Hebei, Yangtze River Delta, Pearl River Delta and Guangdong, Hong Kong and Macao. While improving the delivery efficiency, it will also greatly shorten the time for users to obtain drinks and enterprises to obtain market feedback, “so as to continuously expand the market share.”

It is reported that Yuanqi forest will also start the construction of production bases in southwest and central China this year, and the production capacity is expected to exceed 10 billion after all the plants are put into operation.

Finally, in terms of accelerating internationalization, according to the relevant person in charge of Yuanqi forest, the company’s brand positioning is to “serve the world globally”. On the one hand, it should “bring in” and on the other hand, it should “go out”.

For overseas M & A to “bring in”, the relevant person in charge of Yuanqi forest said that its approach is to explore the possibility of “forming consumption upgrade or making up for the blank of consumer demand” for the existing products in the Chinese market from the aspects of raw materials, origin and technology, and the specific direction is determined by the consumer and market demand. Previously, Yuanqi forest introduced the taste of “Matai tea” from South America and launched new energy drinks.

In addition, Yuanqi forest said that in the next 2-3 years, it plans to further acquire its own factories overseas by means of investment or self construction, and promote the research and development of more global products.

As for “going out”, according to Yuanqi forest, it has entered more than 40 countries in the world, including the United States, Canada, the United Kingdom, France, Germany, Australia, Singapore, Japan, South Korea, etc.

Yuanqi forest said today that it has regarded the United States, Europe and Southeast Asia as “the current important development markets”, focusing on existing products going out to sea and catching new market opportunities from 0 to 1 overseas. In terms of channel expansion, it will focus on emerging channels and DTC channels directly facing consumers.

Valued at $6 billion

In the fierce competition of China’s beverage market, why do investors bet on this new local beverage brand?

Guo Zhenwei, managing director of Sequoia China and director of Yuanqi forest, said today that food and beverage are the key areas of Sequoia China. “We know that the beverage industry is high and strong. But the young vitality forest has brought changes to this big industry, not only the product innovation and marketing methods that can be seen from the outside, but also the Organization Ecology and operation process inside the company that can not be seen from the outside. “

“The real reason for us to take the lead for two consecutive rounds is that we think Yuanqi forest is a team with dreams, courage, ability to constantly challenge ourselves and break through boundaries. We continue to be optimistic about the fast iteration ability and execution ability of Yuanqi forest team, and we are optimistic that Yuanqi forest will grow into a comprehensive group around healthy life of young consumers.” He continued.

As a new shareholder of Yuanqi forest, Wei Zhen, CO president of Huaping investment group in China, said today that he is optimistic about Yuanqi forest as a “national brand”. “With the rapid rise of China’s middle class in the past 10 years, as well as the demand, scene and link reconstruction brought about by the awakening of self-consciousness of generation Z, we judge that the next decade will be the golden decade for the rise of Chinese brands.” He said.

“We are very optimistic about the possibility of Yuanqi forest reaching the top of the track, so we choose to bet and accompany continuously.” Han Rui, partner of Gaorong capital, an old shareholder, told xiaoshidai today that first of all, Yuanqi forest has a “very visionary team with great determination” and has a profound insight into consumer demand.

Secondly, he said, Yuanqi forest has been highly digitalized throughout the product development process from the first day of its establishment, and product testing and iteration are fast, which is also the key to creating a series of flagship products in the fierce competition.

 

Han Rui told xiaoshidai that today’s Yuanqi forest is going through the process of “from quantitative change to qualitative change”. From now on, it has broken through the “super long board” by virtue of its significant product advantages, and today it is marching forward to a leading company with “no short board”.

According to the data, among the other two new shareholders in this round of financing, l catterton is the largest consumer goods investment company in the world. Its investment scope covers many fields of fashion consumer goods, focusing on medium-sized growth companies in Asia. Temasek is an international investment company set up by Singapore. It makes long-term investment around four investment themes: economies in transition, growing middle class, significant comparative advantage and emerging leading enterprises.

At present, China is one of the largest soft drink markets in the world, and still has a good growth rate. According to the data of the National Bureau of statistics, the total retail sales of social consumer goods in 2020 will be 391981 billion yuan, of which beverages will increase by 14%.

At present, the growth rate of Yuanqi forest makes many traditional beverage giants cannot be underestimated. It is reported that during the “618” period in 2019 and 2020, Yuanqi forest won the first place in the sales volume of tmall drinks in a row; during the “double 11” period in 2020, Yuanqi forest ranked first in the sales volume of tmall drinks and Jingdong drinks on the double platforms.

Pay attention to “xiaoshidai” (wechat: foodinc) “and reply to” Yuanqi forest “to see the wonderful news.

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