---
title: "How Will China Resources C'estbon Expand Its Beverage Territory?"
description: "China Resources C'estbon, a co-initiator and drafter of China's national standard for bottled purified water, became the leader in China's bottled water industry with a 20.4% market share in December 2015 (according to Nielsen public data). Currently, C'estbon's ambitions extend beyond bottled water leadership. In 2015, China's functional beverage market reached 60.6 billion yuan, a year-on-year increase of 15.16%. According to authoritative data, by 2020, retail sales of functional beverages in China are projected to reach 163.528 billion yuan, indicating significant room for growth."
author: "New Distribution"
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published: "2017-07-15"
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# How Will China Resources C'estbon Expand Its Beverage Territory?

> China Resources C'estbon, a co-initiator and drafter of China's national standard for bottled purified water, became the leader in China's bottled water industry with a 20.4% market share in December 2015 (according to Nielsen public data). Currently, C'estbon's ambitions extend beyond bottled water leadership. In 2015, China's functional beverage market reached 60.6 billion yuan, a year-on-year increase of 15.16%. According to authoritative data, by 2020, retail sales of functional beverages in China are projected to reach 163.528 billion yuan, indicating significant room for growth.

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China Resources C'estbon, as one of the initiators and drafters of China's national standard for bottled purified drinking water, became the leader in China's bottled water industry with a 20.4% market share in December 2015 (according to Nielsen public data). Currently, C'estbon's goals are far more ambitious than just being the bottled water leader. In 2015, China's functional beverage market reached 60.6 billion yuan, a year-on-year increase of 15.16%. According to authoritative data, by 2020, retail sales of functional beverages in China are projected to reach 163.528 billion yuan. There is still significant room for growth in the functional beverage market.
C'estbon's launch of the new Magic product at this time is the perfect opportunity to capture the sports beverage market and expand its territory. Zhu Danpeng, a commentator on China's food industry, said: "After completing its nationwide layout in bottled water, entering the sports beverage market now can be described as acting in accordance with the trend. At the same time, the launch of Magic also enriches C'estbon's product line."
**After becoming the leading brand in China's bottled water market, beverages become the next target**
"With the continuous consolidation of C'estbon water's leading position nationwide, expanding the beverage line and developing multiple categories together has become an important development goal for our next stage." In a recent internal public speech, Hou Xuhua, deputy general manager of China Resources C'estbon, revealed the company's ambitions.
In the past two years, C'estbon has rapidly captured about 20% of China's bottled water market, becoming the industry's leading brand. According to Nielsen data from March this year, the top five in China's bottled water market share were Nongfu Spring, China Resources C'estbon, Master Kong, Ganten, and Wahaha. Nongfu Spring's market share only leads C'estbon by two percentage points. In fact, since November 2015, C'estbon has been on par with Nongfu Spring in the bottled water business.
But you may not have heard much about C'estbon's other beverage brands, such as Afternoon Milk Tea, Magic, FIRE Coffee, and Jialinshan.
"Magic" is a functional beverage brand under C'estbon, and marathon enthusiasts might have some impression of it. In fact, starting with the Hainan (Sanya) International Marathon in February this year, as a sponsor, Magic functional beverage appeared alongside the main product C'estbon purified water at nearly nine marathon events across China.
Since the start of summer this year, C'estbon has increased its investment in "Magic." On May 25, the new packaging of Magic began pre-sale exclusively on JD.com. On JD Super, the price for a 15-bottle case of Magic in salted lychee and lemon flavors ranges from 45 to 57 yuan. On Taobao, distributors are also selling the previous generation packaging of Magic.
From the first launch of the sports beverage "Zero Pressure" in 2010 to the current "Magic" amino acid sports beverage, C'estbon has gradually compensated for its channel disadvantages outside the South China market, with penetration rates in the West, East, and North reaching 36.9%, 24.2%, and 19.2%, respectively. However, the biggest problem for "Magic" is that not many people know the brand yet.
**Magic Amino Acids Directly Targets "Sweating" Scenarios, Following Mainstream Consumption Trends**
Magic Amino Acids has three main drinking scenarios: sports sweat, busy sweat, and fun sweat. The Magic series creates the product value of "accompanying sweat points, replenishing vitality" based on these scenarios. The product focuses on young consumers, offering a new sports beverage choice tailored to China's new generation of young people who are active and advocate a healthy lifestyle. The new "Magic" product has undergone significant upgrades in flavor and packaging. Unlike common sports beverages on the market that use taurine and peptide cellulose as main ingredients, Magic Amino Acids specially adds multiple amino acid components to replenish amino acids lost through sweat, helping with physical recovery and sustained energy.
According to the "2016 Annual Report on the Overall Operation of the Beverage Industry" released by the China Food Industry Association: With the increasing consumer demand for health, China's mainstream consumer groups have transitioned from carbonated beverages to tea beverages, and then to packaged water and healthy sports beverages. Consumers' preference for refreshing fruit juice beverages is growing. Magic Amino Acids aligns with current taste trends, with two new flavors: lemon and salted lychee. In consumer research, both products outperformed similar flavors of comparable products. In terms of packaging design, Magic Amino Acids has a fashionable overall shape and cool color scheme, using a dumbbell-shaped bottle that combines the brand attributes of a sports beverage with ergonomic easy-grip design. The good anti-slip grip, the front figure, and the raised MULENE design on the back are visible brand vitality, allowing consumers to feel the brand's magic. The packaging design emphasizes the product's sports attributes while conveying the brand spirit of youthful vitality and self-breakthrough.
**C'estbon Has Completed Its Nationwide Layout; Magic Amino Acids Aims to Redraw the Market Landscape**
A C'estbon beverage planning executive said: "C'estbon has always provided consumers with healthy and satisfactory high-quality products with production standards superior to national standards. At the same time, by gaining insights into consumer needs, we hold ourselves to high standards with an innovative and breakthrough corporate spirit, continuously upgrading and improving products to give consumers more surprises and experiences. The new launch of the Magic Amino Acids series brings high-quality, consumer-oriented products to the public while conveying C'estbon's brand spirit of always providing consumers with a healthy and fashionable lifestyle experience."
In Kantar Worldpanel's "2016 Global Brand Footprint Report," C'estbon became the fastest-growing brand in consumer reach points in China with a growth rate of 27.0%. Consumer recognition of the C'estbon brand is an important guarantee for the market success of Magic Amino Acids sports beverage.
However, whether it is the former, which focuses on the light exercise concept and fruit-flavored functional beverages, or the latter, which emphasizes active cellulose and vitamin nutrient beverages, they are similar to similar products from other brands in the market. The homogenized selling points have not left much impression on consumers.
**Facing the Beverage Market, C'estbon Still Needs to Continue Efforts**
Another product that C'estbon once tried hard to promote, FIRE Coffee, encountered the same problem. As early as 2011, C'estbon's parent company, China Resources Enterprise, established a joint venture with Japan's Kirin Company to operate Kirin's ready-to-drink coffee in China. In 2013, "Kirin Direct Fire Roasted Coffee" was localized to "Fire Coffee," but Fire Coffee has never become popular in China.
In 2015, Master Kong partnered with Starbucks to sell high-end bottled ready-to-drink coffee; and Uni-President's Yaha, launched in 2003, sold well on e-commerce channels and by that year had become the second-best-selling product in that channel, second only to Nestlé.
However, whether it is Fire Coffee or Magic, C'estbon is entering a fiercely competitive red ocean. In the functional beverage market, Red Bull's share is as high as 80%; in some parts of China, Nestlé also occupies 80% of the ready-to-drink coffee market. However, as the carbonated beverage market continues to shrink, these categories may continue to expand.
In the channels opened by bottled water, how to achieve the visibility and influence of other beverage categories remains a question for C'estbon to answer with new results.
**Source: Jiemian, Southern Metropolis Daily**
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