---
title: "Functional Beverage Market Faces New Rival: Nestlé Enters with New Light Replenishment Drinks!"
description: "After raking in 47 billion yuan in China, Nestlé's appetite remains unsated. In 2018, Nestlé reported revenues of CHF 91.4 billion (approximately RMB 618.57 billion, equivalent to two and a half Alibabas) and earned CHF 7 billion (about RMB 47 billion) in China, a 6.5% year-on-year increase. As a hidden giant, Nestlé owns brands like Totole, Haoji Chicken Essence, Hsu Fu Chi, Yinlu, and Pure Life in the Chinese market. In 2019, optimistic about the bottled water market, Nestlé's bottled water brand 'Pure Life' recently launched two products: an upgraded 'trophy bottle' purified water and a new sports drink 'Nestlé Pure Life Hydrate+', officially entering the functional beverage market."
author: "New Distribution"
publisher: "New Distribution"
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published: "2019-04-21"
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# Functional Beverage Market Faces New Rival: Nestlé Enters with New Light Replenishment Drinks!

> After raking in 47 billion yuan in China, Nestlé's appetite remains unsated. In 2018, Nestlé reported revenues of CHF 91.4 billion (approximately RMB 618.57 billion, equivalent to two and a half Alibabas) and earned CHF 7 billion (about RMB 47 billion) in China, a 6.5% year-on-year increase. As a hidden giant, Nestlé owns brands like Totole, Haoji Chicken Essence, Hsu Fu Chi, Yinlu, and Pure Life in the Chinese market. In 2019, optimistic about the bottled water market, Nestlé's bottled water brand 'Pure Life' recently launched two products: an upgraded 'trophy bottle' purified water and a new sports drink 'Nestlé Pure Life Hydrate+', officially entering the functional beverage market.

**After raking in 47 billion yuan in China, Nestlé's appetite remains unsated!**
In 2018, Nestlé reported revenues of CHF 91.4 billion (approximately RMB 618.57 billion, equivalent to two and a half Alibabas) and earned CHF 7 billion (about RMB 47 billion) in China, a 6.5% year-on-year increase. As a hidden giant, Nestlé owns brands like Totole, Haoji Chicken Essence, Hsu Fu Chi, Yinlu, and Pure Life in the Chinese market.
In 2019, optimistic about the bottled water market, **Nestlé's bottled water brand 'Pure Life' recently launched two products: an upgraded 'trophy bottle' purified water and a new sports drink 'Nestlé Pure Life Hydrate+', officially entering the functional beverage market.**
**01 Deepening the 2-yuan price band, Nestlé Pure Life gets a new look**
Nestlé Pure Life is the core brand of Nestlé Waters, holding a significant position in the global bottled water market.
Recently, Nestlé Pure Life quietly refreshed its image, introducing a more fashionable packaging. The new packaging is called the 'trophy bottle' due to its resemblance to a trophy. It has been rolled out in regions such as Fujian and Shanghai, and the new packaging is also available on Nestlé Water's Tmall flagship store.
Compared to the 2016 redesign, this change is more substantial. The new bottle is slimmer and taller, with a larger opening; the bottle weight has increased, and the spiral-shaped body offers a better grip and a more modern feel. The increased weight and packaging changes have led to higher costs. However, despite the product upgrade, the new product retains a price of 2 yuan.
In 2018, Master Kong abandoned its 1-yuan water era after 13 years. By upgrading packaging and engaging in public welfare marketing, it raised its price to 2 yuan. Nongfu Spring and C'estbon also primarily sell 2-yuan bottled water. With Master Kong's 1-yuan water stepping aside and Hengda Ice Spring dropping from 5 yuan to 2 yuan, the 2-yuan price band has become mainstream. Nielsen data shows that bottled water priced around 2 yuan accounts for about 60% of total sales and is the fastest-growing price segment. It is foreseeable that competition in the 2-yuan bottled water market will intensify.
**02 First foray into the functional beverage market**
Due to optimism about China's functional beverage market, **Nestlé will also launch a functional sports drink 'Nestlé Pure Life Hydrate+' in China. This is a fruit-flavored 'Hydrate+' electrolyte water, featuring 'rich in dietary fiber' and 'low sugar, low calories', available in two flavors: clear peach and refreshing lime.**
Nestlé suggests a retail price of around 5 yuan for this 450ml new product, expected to launch in first-tier cities and existing Pure Life channels in May.
Euromonitor data shows that from 2013 to 2017, the functional beverage market grew at a compound annual growth rate of 12.9%, far exceeding the beverage industry's 3.7%.
In addition to established players like Red Bull, Dongpeng Te, and Lehu, hundreds of new functional beverage products have entered the same track in recent years, even dairy giant Yili has crossed over to 'rob' the market. Newcomers want to grab territory; incumbents want to hold onto their interests. A battle for the functional beverage market is heating up...
As a light post-workout replenishment drink, 2019 has also been lively. In 2019, Nongfu Spring's sports drink brand Scream launched new products and plans to introduce a strong replenishment product within the year, building a diversified sports product matrix. Foreign giant Mizone introduced new flavors and created a new series 'Mizone+', and Jianlibao also launched a new sports drink 'Love Sports' recently... A race for market position is about to begin.
**03 Nestlé's Ambition**
As the world's largest bottled water producer, Nestlé's global water business generated CHF 7.9 billion (about RMB 53 billion) in 2018. Nestlé owns well-known brands such as San Pellegrino and Perrier.
According to data, Nestlé currently has three factories in China, located in Shanghai, Tianjin, and Kunming, with three brands: 'Pure Life', 'Huo Te Man', and 'Yunnan Spring'. Nestlé revealed that in the Chinese market, the bottled water division's sales volume is 45% from Pure Life, 40% from Yunnan Spring, and 15% from Perrier and San Pellegrino.
China has become Nestlé's second-largest market globally. Earlier this year, Nestlé's 'Yunnan Spring' launched four new natural spring water products, targeting the 3-yuan price band. With 2-yuan Pure Life, 3-yuan Yunnan Spring, and 10-yuan Perrier and San Pellegrino, Nestlé's product line in China is becoming increasingly complete.
In China's beverage market, bottled water and functional beverages are growing in tandem. All signs indicate that Nestlé is full of expectations for the development of China's beverage market.
Source: Food Industry Expert (shiyehome)
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