The bottled water brand that once boasted "every drop goes through 27 layers of purification" is making a comeback. Three years after being divested by Danone and exiting the bottled water market, Robust is restarting its bottled water business on the occasion of its 30th anniversary.

On April 3, a Robust representative confirmed to Beijing Business Today that the company has resumed its bottled water business and will initially sell in South China and Southwest China. Industry insiders believe that Robust's launch of bottled water is less about optimism for China's bottled water market prospects and more about leveraging the nostalgia that remains in consumers' minds to stage a comeback. However, with the industry's current stable landscape, for Robust, which has missed its optimal opportunity window, meeting new consumer demands for diversified and high-end drinking water remains a challenge.

A Robust representative told Beijing Business Today that, on its 30th anniversary, the company is launching a new line of bottled water, including purified water and mineral water, maintaining consistent quality and taste. The bottle design incorporates auspicious cloud elements and features the "30 years" label, with initial sales in regions such as South China and Southwest China. It is expected to be available in Beijing by June.

Regarding Robust's re-entry into bottled drinking water, Zhu Danpeng, a Chinese food industry analyst, believes that although Robust never fully exited the drinking water industry—continuing to produce and sell桶装水 (barreled water)—its influence has waned since Danone acquired its equity. The restart of bottled water indicates that Robust still sees potential in China's bottled water market and hopes to make a comeback through this segment.

According to data from China Commercial Industry Research Institute, national packaged drinking water production reached 95.357 million tons in 2017, a significant increase from 55.628 million tons in 2012. In the first half of 2018, production was 45.225 million tons, up 8.56% year-on-year.

Currently, Robust's drinking water business primarily consists of桶装水 (barreled water) products, including Robust purified water, packaged drinking water, and natural mineral water. According to Robust's official website, the water sources for桶装水 are located in Maofeng Mountain (Guangzhou), Huairou (Beijing), and Longquanyi District (Chengdu). The company operates five self-owned factories in Beijing, Tianjin, Guangzhou, Chongqing, and Chengdu, with distribution centered around these factories, mainly serving cities such as Beijing, Tianjin, Chongqing, Chengdu, and Guangdong.

This year marks Robust's 30th anniversary. Founded in Guangdong in 1989, it achieved an output value of 80 million yuan by around 1992 and built a diverse product portfolio including health products, dairy products, beverages, and mineral water.

In 1997, Robust's advertising slogan "Every drop of Robust water goes through 27 layers of purification; it is truly pure water" helped the brand stand out among numerous drinking water brands. In reality, most purified water products undergo dozens of processes to ensure quality and safety, and purification standards may not be lower than Robust's. However, this slogan quantified the purification and filtration process, giving consumers a concrete impression and fostering trust in the brand, making it a household name.

Robust's growth trajectory changed in 2000 when French conglomerate Danone acquired 92% of its equity, bringing the company under its umbrella. Shortly after the acquisition, Robust experienced management turmoil, with the founding team led by He Baiquan being ousted. In 2005, the company suffered huge losses, and from 2006, it began large-scale layoffs.

Ten years later, in 2016, Danone sold Robust, transferring all assets including the brand, factories, and employees to Yingtou Holdings Co., Ltd. According to information from Qichacha, Robust (Guangdong) Drinking Water Co., Ltd. currently has three major shareholders: Yingtou Holdings Co., Ltd. (51%), Shenzhen Jianian Industrial Co., Ltd. (39%), and Shenzhen Qianhai Furong Asset Management Co., Ltd. (10%).

Since then, although Danone continued the production and sale of桶装水 for nearly three years, it disappeared from the bottled water sector. Now, on the occasion of its 30th anniversary, the bottled water business is making a comeback.

Xu Xiongjun, a strategic positioning expert, believes that Robust has a certain level of recognition among consumers born in the 1970s, 1980s, and 1990s. The restart of bottled water is an attempt to return to the "water business." "Robust's restart of bottled water has potential. In the southern market, consumer awareness of Robust is even higher than that of Nongfu Spring. Promoting Robust from the south to the north aligns with the brand's current development status," Xu said.

However, in Zhu Danpeng's view, the drinking water industry is in a stage of multi-brand competition, but the overall industry structure is stable, making it difficult for other companies to gain more share.

Nielsen data shows that as of June 2018, China's bottled water market was led by Nongfu Spring with a 26.4% market share, while the top six brands accounted for 81.6% of the bottled water market, nearly monopolizing it.

Industry insiders say that during the 16 years under Danone, Robust missed its best opportunity for growth in the bottled water market. Now, as old brands like Beibingyang have gradually revived, Robust's bottled water is also returning. Although the prospects are viewed positively, as a once-defunct brand, Robust still has a long way to go to regain its former glory.

This article is compiled from Beijing Business Today and Jiemian News.

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