---
title: "Is C'estbon's Diversification Revival Too Late?"
description: "After nearly a decade, C'estbon, known for its slogan 'Your and My C'estbon', has again emphasized diversification. Recently, while upgrading its 'Magic' sports drink, C'estbon stated that this move 'strengthens its layout in the sports drink market' and 'signals that C'estbon's plan to build a diversified beverage company is gradually taking shape'. Although C'estbon was a pioneer in many fields, it has been surpassed by Nongfu Spring in its main drinking water market, with Ganten close behind. Industry insiders believe that C'estbon's past achievements stemmed from first-mover advantages, channel advantages, and a focus on drinking water, but to stand out in the increasingly competitive beverage sector, turning 'diversification' into 'multiple business successes' will take time."
author: "李振兴"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2020-05-23"
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---

# Is C'estbon's Diversification Revival Too Late?

> After nearly a decade, C'estbon, known for its slogan 'Your and My C'estbon', has again emphasized diversification. Recently, while upgrading its 'Magic' sports drink, C'estbon stated that this move 'strengthens its layout in the sports drink market' and 'signals that C'estbon's plan to build a diversified beverage company is gradually taking shape'. Although C'estbon was a pioneer in many fields, it has been surpassed by Nongfu Spring in its main drinking water market, with Ganten close behind. Industry insiders believe that C'estbon's past achievements stemmed from first-mover advantages, channel advantages, and a focus on drinking water, but to stand out in the increasingly competitive beverage sector, turning 'diversification' into 'multiple business successes' will take time.

**After nearly a decade, C'estbon, known for its slogan 'Your and My C'estbon', has again emphasized diversification.**
Recently, while upgrading its 'Magic' sports drink, C'estbon stated that this move is to 'strengthen its layout in the sports drink market' and 'signals that C'estbon's plan to build a diversified beverage company is gradually taking shape'. Although C'estbon was a pioneer in many fields, it has been surpassed by Nongfu Spring in its main drinking water market, with Ganten close behind.
Industry insiders believe that C'estbon's past achievements stemmed from first-mover advantages, channel advantages, and a focus on drinking water, but to stand out in the increasingly fierce competition in the beverage sector, turning 'diversification' into 'multiple business successes' will take time.
**-01- Re-emphasizing 'Diversification'**
**It has been three years since C'estbon last upgraded Magic, and nearly ten years since it last emphasized 'diversification'.**
C'estbon's significance for the Magic upgrade is that 'whether in terms of C'estbon's product strategy layout or market and consumer demand, it is a product worth looking forward to. It not only signals C'estbon's increased investment in the sports drink market but also that its plan to build a diversified beverage company is gradually taking shape'.
**C'estbon first proposed diversification in 2010. That year, it launched the sports drink 'Lingpa'. In 2011, C'estbon cooperated with Japan's Kirin Company, becoming responsible for the production and distribution of all Kirin's non-alcoholic beverages in China, including afternoon milk tea, sports drinks, coffee drinks, and other categories.**
Although in recent years, while strengthening packaged drinking water, it has continuously invested in beverage R&D, launching new products such as Honey Lemon Water, Zuowei Chashi, Xiaozhujun, and Grape Holiday, C'estbon's development focus remains packaged drinking water, and it quickly became popular with 'Your and My C'estbon'.
After years of development, **in 2018, C'estbon's turnover exceeded 13.7 billion yuan, a year-on-year increase of 8.8%. Nielsen data shows that by the end of 2018, C'estbon's packaged water terminal sales increased by more than 10% year-on-year, with a market share of over 22%, firmly ranking second nationwide**, covering categories such as packaged water, near-water beverages, sports drinks, milk tea, coffee, and tea drinks.
In the view of marketing expert Lu Shengzhen, C'estbon's current market position relies on channel advantages.
However, Xu Xiongjun, a strategic positioning expert and founder of Jiude Positioning Consulting, believes that in the current fiercely competitive beverage industry, C'estbon mainly focuses its resources on packaged drinking water, thus achieving overall revenue exceeding 10 billion yuan. In the future, while consolidating its position in drinking water, it needs to increase investment in diversified fields.
**-02- Surpassed by Latecomers**
C'estbon once played a pivotal role in China's beverage market, especially in the packaged drinking water sector. **C'estbon once produced China's first bottle of purified water, held the 'dominant' position in drinking water, and also trained talent for other companies. Even so, in recent years, C'estbon has been surpassed by latecomers.**
In 1984, China Longhuan Beverage Co., Ltd. (C'estbon's predecessor) was established in Shenzhen. In 1990, C'estbon produced China's first bottle of purified water, and in 1996 it was acquired by China Resources Group.
In the same year C'estbon was acquired, Nongfu Spring was officially launched. In 1997, Wahaha began producing purified water. In comparison, C'estbon was several years ahead of these two companies. However, at that time, C'estbon positioned itself as a regional drinking water brand, selling only in Guangdong. It was not until 2007 that it went national. In 2011, C'estbon became the third in the drinking water industry, and in December 2015, with a 20.4% market share, it became the 'dominant' player in drinking water.
However, **in the past two years, Nongfu Spring has long become the leader in drinking water, maintaining a market share of over 20%, with C'estbon ranking second by a narrow margin.** But at the end of April 2020, Nongfu Spring applied for listing on the Hong Kong Stock Exchange. Industry insiders predict that if Nongfu Spring successfully lists, it will widen the gap with C'estbon.
With Nongfu Spring ahead and Ganten in hot pursuit behind, Ganten's founder Zhou Jingliang came from C'estbon. In 1984, Zhou Jingliang joined C'estbon as general manager. In 1992, he left C'estbon to create Jingtian, and in 2004, he took a different path and launched Ganten mineral water. Recently, Ganten invested 500 million yuan to lay out new mineral water production capacity in Meizhou, Guangdong.
Lu Shengzhen believes that Ganten guides the market by promoting high-end products, which is different from C'estbon's positioning and has little impact. However, some industry insiders say that Ganten's impact on C'estbon is that 'Zhou Jingliang knows C'estbon inside out and is familiar with its various strategies, making him one of its most dangerous competitors'.
Regarding C'estbon being surpassed by latecomers, Lu Shengzhen said in an interview with Beijing Business Today, '**C'estbon's main problem lies in brand building and product positioning. Apart from pricing strategies, its other competitive methods are lackluster, and its marketing methods are relatively primitive.**'
**-03- Multiple Shortcomings to Address**
'**C'estbon has certain advantages in the packaged drinking water field, but in other beverage product areas, C'estbon lacks competitiveness. If it wants to continue rapid development in the future, it needs to address its shortcomings.**' said an industry insider.
In 2011, relying on cooperation with Japan's Kirin Company, C'estbon entered the coffee beverage field. After nearly a decade of development, with an annual growth rate of over 20%, C'estbon still has not entered the mainstream, with the market firmly occupied by brands such as Nestlé, Starbucks, Weiquan, and Uni-President. Later, giants like Yili and Nongfu Spring also began to lay out, and the industry generally commented: 'C'estbon got up early but arrived late for the market.'
In the milk tea field, in 2019, C'estbon launched 'Yuanshi Zhiming' milk tea, focusing on 'low fat' and afternoon consumption scenarios. However, in the bottled milk tea field, Uni-President's Assam milk tea has maintained the top market share in recent years. At the same time, the emergence of Xiangpiaopiao cup milk tea and street-side freshly made milk tea has also eroded C'estbon's market share to some extent.
In the sports drink field, 'Magic' competitors mostly have international corporate backing, making competition particularly fierce. PepsiCo's 'Gatorade' has been deeply cultivating China for over a decade, relying on Master Kong's channels and production capabilities. In 2019, Coca-Cola officially introduced 'BODYARMOR' to China. Danone's 'Mizone' has also undergone drastic reforms recently. Nongfu Spring's 'Scream' sells nearly 2.7 billion yuan annually.
Industry insiders believe that **with consumption upgrading, sports drinks, milk tea, and other fields have become trends, but C'estbon has put too much energy into the packaged drinking water field, missing opportunities, leading to its diversified products not receiving attention. Although it is not too late to re-emphasize diversification now, it is definitely not the best time.**
Regarding future development, a C'estbon spokesperson said in response to a Beijing Business Today reporter's interview that C'estbon continuously promotes new products in beverage categories, especially focusing on the development prospects of near-water beverages. In the future, C'estbon will also explore new consumer trends and needs in different beverage categories to enrich product depth.
For how to strengthen other categories in the future and cope with the 'powers' from all sides, Lu Shengzhen suggested that while ensuring relative leadership in the packaged drinking water field, C'estbon should continue to catch up with Nongfu Spring. Since Ganten only has drinking water, **C'estbon can widen the gap with it through diversified layout, while adhering to a low-price strategy, occupying more advantageous channels, achieving full exposure, and thus standing out.**
Source: Beijing Business Today, Author: Li Zhenxing
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