Introduction: "The product itself is the only killer weapon that determines the market." — Zhong Shanshan This year, Nongfu Spring has launched many new products, each with a novel style: first plant-based yogurt, then birch sap facial masks, and now carbonated coffee. Just by looking at the names, you can feel the cross-industry thinking.

Nongfu Spring's New Carbonated Coffee Product

  • Product Name: "Temporarily Unknown"
  • Product Selling Point: Rich coffee + light bubbles
  • Product Specification: 360ml
  • Product Price: RMB 6 yuan
  • First Launch Markets: Hangzhou, Zhengzhou
  • Product Equipment: German Probat roaster
  • Raw Material Sources: Ethiopia, Brazil
  • Production Process: Green beans undergo 5 screenings, extraction follows the professional Golden Cup standard, coffee liquid is filtered again, filling is done on a fully sterile production line, and during mixing, oxygen in the container is replaced with nitrogen to prevent oxidation.

According to related media reports, this new product will continue Nongfu Spring's high standards: strictly selecting high-quality coffee beans from Ethiopia and Brazil, using German Probat top equipment for self-roasting and self-extraction, and uniquely adopting Italian cold brew technology to preserve the aroma, richness, and mellow taste of coffee in the extract. In other words, Nongfu Spring's first beverage of 2019 is about to make a grand debut.

However, it is well known that the carbonated beverage market has been declining for 18 consecutive years. Coca-Cola and Pepsi are both struggling and busy reshaping the perception of carbonated drinks.

Moreover, in the bottled coffee beverage sector, early entrants seem to have no impressive results: Coca-Cola's "Georgia Coffee" sells well in Japan and South Korea but performs mediocrely in China; Master Kong's "Bernachon" launched in 2017 has been lukewarm; Uni-President's "Manya Coffee" is offering a second bottle for 0.1 yuan in Shanghai convenience stores... Why does Nongfu Spring choose this moment to push carbonated coffee? What is its confidence?

First, although Nongfu Spring currently covers most beverage categories such as water, tea drinks, juices, and functional drinks, it still lacks plant protein, coffee, and other categories to form a comprehensive product matrix.

Especially in the carbonated beverage category, according to data from China Research and Intelligence, annual consumption is still around 1,800 tons. Many carbonated beverage enthusiasts are obsessed with the stimulating sensation of bubbles bursting on the tongue and the coolness when carbon dioxide removes heat from the body. Nongfu Spring launched a sparkling beverage called "Nongfu Qi Cha" in 2005, then "Soda Black Tea" in 2010, and "Bubble Tea" (tea + carbonation + juice) in 2018. It has been paying attention to carbonated drinks for over a decade.

Additionally, according to public information, Nongfu Spring had all preparations for coffee production in 2010 but delayed launching a coffee product. In the past two years, the coffee industry has attracted nearly 2 billion yuan in venture capital, and even Luckin Coffee, which continues to lose money and burn cash, is clamoring for an IPO. This hot market atmosphere has made Nongfu Spring sense the perfect timing to launch a new coffee product.

Second, when selling coffee, Nongfu Spring chooses the most fashionable type. Sparkling coffee is popular on the West Coast of the United States and is now the most popular internet-famous drink among young people. Whether it's KFC's new hit drink or Genki Forest's simple DIY tutorial, both attract the attention of many young people.

Nongfu Spring has always been "heavily investing" in young people. Its brand rejuvenation strategy has also created its fastest 1 billion yuan single product—Tea Π. The recently launched Bubble Tea and plant-based yogurt also continue the fashion style, closely following trends. Carbonated coffee is no exception, and with a retail price of only 6 yuan, compared to Uni-President's Manya Coffee at 19.8 yuan per bottle, this new product is more likely to attract more consumers.

Third, Nongfu Spring has significant advantages in traditional channels and vending machine channels. Nongfu has been steadily advancing in traditional channels. After completing the "key account system" distributor reform in 2017, it also stimulated the self-development potential of distributor partners. In the vending machine channel, Nongfu Spring has always been a leader. As of December 30, 2018, Nongfu Spring had deployed 21,000 vending machines nationwide, with each machine averaging monthly sales of over 3,500 yuan. This strong channel advantage is a great boost for any new product.

What do you think about Nongfu Spring's layout in the carbonated coffee beverage market? Is it a ripple or a tsunami? Feel free to leave us a message and discuss Nongfu Spring's first beverage of 2019.

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