Genki Forest has invested in a Chinese liquor brand and is ready to enter the liquor market.
Chinese sugar-free beverage giant Genki Forest has just invested in a new liquor brand, Guanyun Liquor, according to Chinese media reports. With an investment of hundreds of millions of yuan, Genki Forest acquired a 15 per cent stake in Guanyun Liquor.
In the past 10 years, young people in China are giving up drinking baijiu, because drinking baijiu to some extent represents a culture that is not liked by young people. But some new liquor brands, such as Jiang Xiaobai and Guanyun Liquor, are trying to change that and re-attract young people to taste baijiu.
Guanyun Liquor(观云白酒, Watching Cloud Liquor）, founded in 2015, is a new Chinese liquor brand, focusing on traditional Chinese spirits for young consumers. Prior to this financing, Guanyun Liquor has received a cumulative investment of 32 million yuan. In 2018, it achieved sales of more than 3000 million yuan, and in 2019, Guanyun Liquor achieved its sales target of 100 million yuan.
Also See: What is Genki Forest ?
Founded in 2016, Genki Forest is popular in China because of its introduction of sugar-free sparkling water and burning tea. At an internal meeting last year, its founder, Tang Binsen, revealed that the company has an annual sales target of 7.5 billion yuan in 2021.
The company started as sugar-free sparkling water, but in the past two years it has launched product lines such as milk tea, yogurt and functional drinks. At the same time, the company also invested in a coffee company and a light food company. At internal meetings, the company generated that 95% of its new products were not yet on the market.
Although the company is seen as a new competitor to Coca-Cola in the Chinese market, it is reported that the company’s founder, Tang Binsen, aims to turn the company into the Maotai of the beverage industry.