The beverage industry is one that never goes out of style. Perhaps because of this, competition in the beverage industry has always been fierce, with players coming and going. Here, the author takes stock of the growth rates of beverage giants over the past year, based on Nielsen's Q4 2019 rolling annual total growth rate data compared to the same period last year. MAT2019Q4 vs MAT2018Q4, MAT2018Q4 vs MAT2017Q4. According to the data in the table, Jinmailang leads by a wide margin with a 42% growth rate, ranking first. Besides Jinmailang, the top three companies also include Nongfu Spring and Ganten. These three beverage giants maintained their position as the locomotive of the industry in terms of overall growth in 2019. However, not all of the top 15 beverage companies have maintained stable and rapid growth. Some companies have fallen off the list this year, and with the decline of some companies, new dark horses are bound to emerge. A review of the Q4 2018 rolling annual total data shows that Huiyuan's name has disappeared from the 2019 table, while Nestlé, which had not appeared before, jumped to fourth place. Interpretation: 1. Jinmailang: Jinmailang Beverage's 42% growth rate far exceeds the second place. It is understood that this is the ninth consecutive quarter that Jinmailang has led the beverage industry in growth. When it comes to Jinmailang, the first thing that comes to mind is its noodle products, but beverages are actually another major category among Jinmailang's five business divisions, besides noodles. In 2018, Jinmailang launched Boiled Water, which still maintains a high level of popularity in beverages today. In January of last year, Jinmailang launched new functional beverages, and in September, it launched new sparkling water products. Currently, Jinmailang Beverage has completed the layout of multiple categories including bottled water, fruit juice, ready-to-drink tea, light beverages, sparkling water, and functional beverages. In the past, Jinmailang focused mostly on noodle products, but as it gradually increased production capacity in beverages and accelerated the construction of its beverage category matrix, its beverage growth rate has been significant. In addition, according to internal sources at Jinmailang, last summer, Jinmailang promoted the "Four Grabs Spirit" internally—grab shelf space, grab refrigerators, grab displays, and grab inventory—which greatly promoted the rapid sell-through of terminal beverage business. From the performance of beverages, it is not unreasonable that its growth rate has consistently ranked first. 2. Nongfu Spring: As the leader in bottled water, Nongfu Spring maintained a steady double-digit growth rate of 15%. What actions did Nongfu Spring take last year? In 2019, Nongfu Spring launched 11 new products in a row, many of which were disruptive, and it was the first in the industry to lay out lithium-containing water. In January 2019, it launched two new sports drinks under the Scream brand; in February, it strengthened its plant-based protein category by launching a fermented plant-based yogurt; in March, it fully launched the new packaging of its star product Tea π, with a new celebrity spokesperson; in May, Nongfu Spring disruptively launched a ready-to-drink carbonated coffee beverage called Carbon; In June, to further improve its NFC juice product line, Nongfu Spring launched a new low-temperature NFC juice product; then it launched a lithium-containing natural mineral water, filling the gap in the lithium-containing water category and the middle-aged and elderly market segment; in September, Nongfu Spring refreshed its mid-concentration juice representative brand, Nongfu Orchard, upgrading the concentration to 50%, distinguishing it from traditional juice flavors; in October, following the carbonated coffee Carbon, it launched premium coffee. In December, Nongfu Spring launched a new sparkling mineral water based on natural mineral water. Moreover, Nongfu Spring currently has eight major water source sites. In addition to the classic red bottle water, it also has products in segmented fields such as premium water, baby water, student water, and lithium water. 3. Ganten: As one of the three giants in bottled water, Ganten's growth rate declined compared to its previous double-digit growth, but it still ranked third with 7%. Ganten has always been called the "aristocrat among waters." It is basically impossible to win on price. Besides product strength, Ganten relies more on its marketing methods. In March 2019, Jingtian Ganten officially announced Jing Tian as its brand spokesperson and launched 14.8L one-time-use barreled water, targeting corporate and household water use scenarios. In addition, as a representative of natural mineral water, Ganten dominated 2019 sports events, making frequent appearances in a series of competitions, and in this big sports year, it deservedly captured all the attention. 4. Nestlé: Nestlé has always been the world's largest food company, but its water business has been growing slowly. Therefore, Nestlé is rarely seen on the beverage growth rate list. However, as of Q4 2019, Nestlé's beverage growth rate was 7%, directly jumping to fourth place, closely following the bottled water giant Ganten. The main reason is that in August 2018, Nestlé officially announced the acquisition of Starbucks' retail and foodservice business for 7.15 billion yuan, and it will permanently have the right to sell related Starbucks products outside of Starbucks coffee shops worldwide. The two companies also explicitly stated that they would launch a series of new products in 2019. In addition, although its overall drinking water business remained flat last year, in premium water, especially San Pellegrino, Perrier, and Acqua Panna, it achieved 8%-9% growth globally last year. According to Nestlé, due to relatively stable pricing in the past few years, most of Nestlé's growth was based on portfolio strategy, and most of it came from premiumization of the product portfolio. 5. Huiyuan: Huiyuan Juice, as the only company that disappeared from the list, has reasons far beyond declining performance. According to public information, Huiyuan Juice was suspended in April 2018 due to a 4.275 billion yuan illegal loan. After that, various revelations emerged—Huiyuan Juice was already insolvent. As of the end of 2017, Huiyuan Juice's total liabilities had reached 11.402 billion yuan. Huiyuan Juice's net profit in 2017 was 135 million yuan, which could not offset its interest expense of 546 million yuan. In April 2019, Huiyuan Juice planned to sell itself to Tiandi No.1 for 3.6 billion yuan to seek help. Once the transaction was completed, Huiyuan Juice would belong to Tiandi No.1, and it would obtain funds to alleviate its debt crisis. But in the end, the two parties called it off, citing that the conditions were not yet mature. At the end of 2019, Zhu Xinli's assets of 4.1 billion yuan were frozen due to the court's seizure of Deyuan Capital. In February 2020, Huiyuan Juice received a delisting letter. 6. Red Bull: Red Bull had a 4% growth rate in 2018, but by 2019, although it did not show negative growth, it directly dropped to 0.1%. According to incomplete statistics, there are more than 20 lawsuits between Huabin Group and Thailand's TCP Group, and the trademark dispute between the two has lasted for three years. This trademark case made substantial progress in 2019. The Beijing Higher People's Court made a first-instance judgment on the "Red Bull trademark ownership dispute," rejecting all of China Red Bull's claims and ordering it to bear 18.8 million yuan in litigation costs. Although Red Bull did not accept the judgment and chose to appeal, Huabin also realized that "raising someone else's child" is not a solution. Red Bull has gradually stopped investing in the Red Bull brand. Not only did it launch its own child, "War Horse," but related promotional materials and market expenses have also been reduced compared to the past. On the contrary, according to information from Angejay's distributors, Angejay's purchase price is on average 3-4 yuan cheaper than old Red Bull. The rebate policy is similar, but market expenses are higher than what old Red Bull currently gives, and may increase in tandem with old Red Bull's market expenses. With this shift, it is natural that Red Bull's growth rate has declined. Summary: This is an overall overview of the beverage growth rates of various companies last year. This year, affected by the epidemic, the water war that used to start before and after the Chinese New Year, with early layout after the New Year, has now reached mid-March, and these leading beverage companies are still watching each other. That is to say, this year's business has only just begun. As for how severe the overall impact on the beverage industry will be this year, it may depend on the first-quarter financial reports of each company. But based on the author's understanding from industry insiders, the impact is significant, and the pressure is immense!