It’s fewer sugary sodas, as health conscious Chinese consumers opt for energy drinks, premium waters
Chinese consumers are gradually turning away from traditional soft drinks, as health awareness guides beverage choices
Chinese consumers are increasingly opting for healthier drink options, including premium packaged waters and energy drinks, forgoing classic soft drinks such as Coca-Cola and Fanta, according to Patrick Healy, managing director of Swire Beverages.
“This trend has become very evident in the past three to four years,” said Healy. “The traditional categories will be seeing single-digit growth, while those newly emerged ones will see double-digit growth rates.”
A division of Hong Kong conglomerate Swire Group, whose businesses span across sectors including aviation, property, and trading, Swire Beverages has been a major business partner with Coca-Cola since 1965, when the unit acquired Coca-Cola’s bottling factory in Hong Kong. The company is one of two major bottling partners of Coca-Cola on the mainland, along with Chinese state-owned giant COFCO’s listed subsidiary China Foods.
After a recent realignment of Coca-Cola’s China business, China Foods now mainly operates in northern Chinese cities including Heilongjiang, Jilin and Liaoning province, while Swire Beverages runs the bottling business of Coca-Cola products in southern areas such as Yunnan province, Guangzhou and Shanghai.
While Coca-Cola is in charge of marketing and advertising activities of the Coca-Cola brand and its products, Swire Beverages focuses on delivery and distribution, according to Healy.
He said there is no major difference in consumption patterns between northern and southern China, as both regions are showing a preference for healthier drinks.