What is Nongfu Spring?
Spring (农夫山泉) is a
Chinese bottled water and beverage company headquartered in Zhejiang province. It
is owned and chaired by founder Zhong Shanshan.
1996, Nongfu had the biggest market share in China’s packaged drinking water
market from 2012 to 2019, according to its prospectus, citing research by
consulting firm Frost & Sullivan. It also makes tea and juice beverages.
recorded revenue of 24 billion yuan (US$3.4 billion) in 2019, up from 20.47
billion yuan a year earlier. Nongfu Spring recorded profit of 4.95 billion yuan
in 2019, a 20.6% increase on its 3.61 billion yuan profit the previous year.
Nongfu Spring made an initial public offering on the Hong Kong Stock Exchange.
The company raised approximately US $ 1 billion by valuing its IPO at HKD 21.50
/ share, at the top of its IPO range.
Nongfu Spring is China's leading bottled water brand
no fixed best-bottled water brands in China as they change from year to year
based on consumer preferences. In China, mineral water represents 91% of the
bottled water market, while sparkling water has a share of 7% and flavored
there are no fixed brands, the local Nongfu Spring appears to continue to lead
China’s bottled water through product innovation and channel optimization.
Nongfu currently has access to China’s top 10 fresh water spots and supplies 29% of the market.
China’s bottled water market is growing rapidly
to The Economist, China has seen average annual consumption of bottled water
increase from 41 liters in 2014 to 59 liters in 2019. Revenue in the Bottled
Water segment amounts to US$53,337m in 2020. Market insiders indicate that
bottled drinking water businesses will continue to grow in China in the future.
awareness of health problems and the prevention of waterborne diseases among
Chinese consumers has led to the continued growth of the sale of bottled
drinking water in China. As Chinese consumers are more sensitive to food and
beverages, bottled water is now a common daily drink for seniors and young
people in China.
more Chinese consumers are adopting a more active and healthier lifestyle.
Nowadays, most Chinese consumers consider bottled water the best health drink
among other alternatives.
Nongfu Spring has a stock market debut
bottled water giant Nongfu Spring Co. is looking to
raise up to HK $ 8.35 billion ($ 1.1 billion) in what may be the world's
second largest initial public offering by a food and beverage company this
Hangzhou-based firm is offering 388.2 million shares of HK $ 19.5 to HK $ 21.5
each in its Hong Kong stock sale, according to a prospectus on the Hong Kong
Stock Exchange website.
offering has attracted five key investors who will purchase a total of $ 320
million for the offering, based on the high end of the range.
At $ 1.1
billion, the first sale of shares in Nongfu Spring is set to become the second
largest F&B IPO in the world following the $ 2.8 billion offering from
coffee giant JDE Peet's BV in Amsterdam to May, according to data compiled by
Nongfu Springs went public in Hong Kong and, after a strong IPO, its founder
was momentarily China’s richest person.
Zhong Shanshan owns more than 80% of Nongfu Springs and was worth $52B
(No. 2 in China, No. 21 in the world).
To know how
can brands in the bottled water industry increase sales in China: