---
title: "Suntory and Nissin Launch New Products; 2017 Beverage Trends; Rise of Meal Kit Delivery; Qiaobi Acquired by Nestlé; Ele.me Enters Unmanned Shelf Market; Xuejin Beer Suspected Contamination"
description: "Suntory introduces a transparent milk tea beverage, while Google releases its first beverage trend report for 2017. Nissin launches new cup noodles, and meal kit delivery service Sun Basket secures funding. Nestlé absorbs Qiaobi, Ele.me enters the unmanned shelf market, and Xuejin Beer faces a contamination complaint."
author: "New Distribution"
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published: "2017-09-20"
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# Suntory and Nissin Launch New Products; 2017 Beverage Trends; Rise of Meal Kit Delivery; Qiaobi Acquired by Nestlé; Ele.me Enters Unmanned Shelf Market; Xuejin Beer Suspected Contamination

> Suntory introduces a transparent milk tea beverage, while Google releases its first beverage trend report for 2017. Nissin launches new cup noodles, and meal kit delivery service Sun Basket secures funding. Nestlé absorbs Qiaobi, Ele.me enters the unmanned shelf market, and Xuejin Beer faces a contamination complaint.

1
**Suntory Launches Transparent Milk Tea Beverage**
Japan's Suntory will release a transparent milk tea drink called "Suntory Natural Water PREMIUM MORNING TEA" starting September 26. Suntory previously launched a "transparent lemon tea" and has now added milk components. The beverage uses Assam tea leaves and milk as ingredients, and despite being a clear liquid, it is full of milk tea aroma. The expected price is 131 yen (excluding tax, about 7.7 RMB) for a 550ml bottle, and 115 yen (excluding tax, about 6.7 RMB) for a 280ml bottle.
2
**Google Releases First Beverage Trends Report for 2017**
Google has released its 2017 non-alcoholic beverage trends report based on analysis of user search keywords. This is Google's first such report, and although it focuses on the US, UK, Spain, and Mexico, we can still glean some interesting insights.
### Trend 1: Increasing Interest in Beverage Production Processes
Google's report shows that people have maintained high enthusiasm for cold brew coffee over the past four quarters, indicating a growing interest in how beverages are made. This interest may stem from a pursuit of better taste, health, or craftsmanship. Many people enjoy watching instructional videos from experts on video platforms. Americans have shown the strongest response to cold brew coffee, with other markets beginning to follow. Cold brew coffee, made by steeping coffee grounds in room temperature or cold water, has become increasingly popular in recent years due to its lower bitterness and acidity, and its sweeter, more cocoa-like flavor.
Blue Bottle also launched canned cold brew coffee this year.
Search growth for cold brew coffee, April 2011 - March 2017.
### Trend 2: Broadening Palates, More Preference for "Earthy" Flavors
With the deepening trend of health and functional foods, consumers (especially Americans) are broadening their sweet tooth preferences, showing more interest in plant and herbal flavors. Among these, matcha flavor is the strongest, with consumers associating it with antioxidants and fat reduction, but many simply love its creamy, rich taste. What might be the next matcha? Possibly turmeric, chamomile, or parsley. Turmeric lattes have already been popular among health-conscious young people on the East and West Coasts.
### Trend 3: Drinking More and More Expensive Water
Consumers want water to be more convenient, accessible, and trendy. Increasing alkalinity, adding carbonation, and upgrading packaging are all ways to attract consumer attention. Sparkling water, in particular, has maintained high search interest since its growth began in the UK and US markets around 2012.
3
**Nissin Launches New Products: "Salt-Reduced" and "Low-Calorie"**
Recently, the 17th China Instant Food Conference, hosted by the Chinese Institute of Food Science and Technology, was held in Beijing. The conference highlighted new products launched by Nissin Foods (China) Investment Co., Ltd. in July this year: Nissin Raoh Cup Noodles - Tonkotsu Ramen.
This product uses a non-fried process to maximize the flavor of traditional ramen. The packaging design is bolder, featuring Japanese ukiyo-e imagery, reflecting traditional Japanese culture while incorporating modern pop elements, giving it a distinctly Japanese style.
The main flavor of Raoh Cup Noodles is Kyushu Black Garlic Oil Tonkotsu, a classic Japanese ramen flavor. It features a rich pork bone broth topped with Japanese roasted black garlic oil. In addition to this main flavor, Raoh Cup Noodles also offers two other varieties: Tokyo Seafood Tonkotsu and Fukuoka Spicy Tonkotsu. All three products have shown strong sales since their launch.
Furthermore, Yoshihide Semimaru, Vice President of Nissin Foods (China) Investment Co., Ltd., gave a speech at the conference, stating that Japanese consumers' focus on health is driving the instant noodle industry towards health and wellness transformation. The growth of the elderly population and the prevention of hypertension and other conditions are pushing instant noodles towards sugar and salt reduction, with a promising market for health and wellness instant noodles.
4
# **Meal Kit Delivery Services Are Gradually Rising**
With consumers' pursuit of convenient and healthy lifestyles, meal kit delivery services are gradually emerging. These services meet the demand for convenient, restaurant-quality meals by providing fresh ingredients and personalized recipes and cooking methods. Recently, meal kit delivery company Sun Basket secured $9 million in Series C funding, led by Unilever, bringing the startup's total capital to $52 million.
Founded in 2014 and headquartered in San Francisco, Sun Basket is a DIY meal subscription service focused on organic food and "clean" eating. The company provides professional recipes and pre-portioned organic ingredients, including vegetables, grains, and proteins, with home delivery. Sales grew 1300% last year.
What is meal kit delivery?
Meal kit delivery involves pre-portioned ingredients for a dish delivered to your home. More advanced services may even wash and chop the ingredients. This is perfect for cooking novices and busy office workers who lack time to select ingredients individually—simplifying meal prep cuts cooking time in half. There are also many customers who lack time but want to cook a healthy, delicious home meal.
So, why is it favored, and how does it attract consumers? The following three key points are worth considering:
1. How to intelligently recommend products based on user preferences;
2. Big data personalized marketing;
3. Focus on specific dietary plans (e.g., diabetes-specific diets).
5
**China's Largest Bulk Chocolate Brand Qiaobi Absorbed by Nestlé**
Nestlé China's chocolate brand lineup has expanded—Xu Fuji's cocoa butter substitute chocolate Qiaobi will now become "Nestlé Qiaobi."
Nestlé acquired a 60% stake in Xu Fuji in 2011, but Qiaobi has continued to carry the Xu Fuji name and has been independently managed by the Xu Fuji team. This sudden absorption by Nestlé, according to Xu Fuji's Chief Marketing Officer Alex Villela, has actually been in the works for a long time.
According to Xu Fuji, Qiaobi has been favored by consumers, with a compound annual growth rate exceeding 7% over the past five years. Currently, Qiaobi is China's largest bulk chocolate brand, with a market share in that segment even surpassing Dove.
Market research firm AC Nielsen data shows that in the 12 months ending July 2017, by retail sales, Qiaobi held approximately 35% of China's bulk chocolate market, ranking first, while second-place Dove held about 28%.
Combining data from AC Nielsen, Kantar Worldpanel, and Euromonitor International, China's bulk chocolate market size is approximately 1.5-2 billion RMB. Alex Villela believes that compared to packaged chocolate, bulk chocolate offers more flexible and personalized selection, easier consumption, and sharing, so this segment still has significant development potential.
"Our main competitor in the coming period remains Dove," Alex said. Entering the Nestlé system will help raise Qiaobi's profile and increase its competitive edge.
This adjustment is expected to maximize the strengths of both parties—Nestlé has stronger brand power and R&D resources, while Xu Fuji has advantages in local distribution channels, especially in the bulk candy and chocolate market.
"The company hopes to present a more international and professional chocolate brand image to consumers," he stated at the press conference.
6
**From Table to Sofa: The Trend of Cheese Snacking Has Arrived**
Luoyi Sea Fish Cheese Snack
**Cheese**, also known as dried cheese or cheese. In 2016, the global cheese market was approximately $95 billion. Euromonitor data shows that China's cheese consumption reached 4.152 billion RMB in 2016, with a compound annual growth rate of 24% from 2010 to 2016. Meanwhile, cheese imports also grew rapidly, reaching 97,200 tons in 2016, with a compound annual growth rate of 27% from 2010 to 2016. **Against the backdrop of consumption upgrading, consumers are gradually shifting towards high-end dairy products such as cheese and butter.**
However, for products, most consumers' awareness still remains on Inner Mongolia's milk beans, milk strips, and traditional sliced or spreadable products. Although demand for these two categories remains mainstream, **the growth in cheese demand, coupled with the ease of breaking into a homogeneous market, we have seen many dairy companies begin to innovate the "cheese consumption experience" and promote the upgrade of "cheese snacking"** . Yili's "Luoyi," Breguet's "Children's Cheese Sticks," and La Vache Qui Rit's "Cheese Bites" are representative products leading the way.
Domestic cheese industry share and scale
Image source: Euromonitor, Essence Securities Research Center
Currently, "cheese snacking" is still in its infancy. Unlike cheese-flavored snacks made with whey powder and cheese flavoring, **the ultimate goal of cheese snacking is to process pure cheese or combine it with different ingredients to create high-nutrition, natural, healthy, and convenient snacks** .
7
**Ele.me Officially Enters Unmanned Shelf Market**
Riding the wave of unmanned retail, unmanned shelves targeting office scenarios have quickly gained capital favor, with more players entering the fray. Before Ele.me launched its unmanned shelf project, several founders or executives of unmanned shelf companies had previously worked at Alibaba. Among them, Guo Xiaomei founder Yan Limin served as General Manager of Juhuasuan; Xingbianli founder Lü Guangyu served as Vice President of Alibaba Group; Lingwa COO Gui Qiangjun served as General Manager of Alibaba's Alibaba.com Direct Sales in China. Additionally, Tmall-invested Yiguo Fresh also announced cooperation with Hami Technology last month.
According to an Ele.me breakfast regional manager, Ele.me's unmanned shelves offer several services, including installation of small shelves and refrigerators, supply and restocking of various food and beverages (15%-20% below market price), regular maintenance, after-sales service, and personalized product supply. Additionally, corporate applicants (contacts) receive extra rewards. Partner companies must provide space for refrigerators and shelves and have at least 30 employees.
8
**Budweiser APAC's Xuejin Beer Suspected of Contamination**
Food is the first necessity of the people, and safety is paramount. However, food safety issues have been frequently surfacing recently. Following the discovery of insect remains in an unopened Beibingyang bottle, an unopened product from Budweiser APAC's Xuejin Beer Co., Ltd. also appeared to contain a suspected cockroach.
**Long Road to Rights Protection**
Recently, a consumer surnamed Sun in Shangrao, Jiangxi Province, reported to the media that a bottle of Budweiser APAC Xuejin Beer he purchased was unopened but contained a suspected cockroach. Sun first contacted the distributor, who offered a case of beer as compensation. Sun then called the manufacturer regarding compensation standards, and the manufacturer suspected he had "put it in himself." After media intervention, the manufacturer, Budweiser APAC Xuejin Beer Co., Ltd., said Sun needed to return the beer to the factory or send it to local quality inspection for testing before further action. By then, over a month had passed since Sun discovered the "cockroach" in the beer.
How much longer will the consumer's rights protection journey take? The reporter interviewed Budweiser APAC Beer Group about the progress of this incident. A public relations staff member said they needed to confirm with superiors before responding, and as of the reporter's deadline, the staff member said they were "still learning about the situation." The reporter also made multiple calls to Xuejin Beer Co., Ltd., but no one answered.
The reporter also called Budweiser APAC's customer service center as a consumer to inquire about handling quality issues. Customer service said that if consumers find quality problems with Budweiser APAC beer products, they should first retain the problematic product and take photos. The customer service center would record the issue and forward it to the specific manufacturer, who would have dedicated personnel contact them.
**Difficulty Tracing Problem Products?**
The consumer's rights protection journey deserves attention, but the source of the problem product is even more worth investigating.
In the aforementioned report, Sun said that during negotiations with the manufacturer, the manufacturer suggested the insect might have been "put in by Sun himself." Similarly, according to a September 6 report by The Beijing News, an unopened bottle of Beibingyang soda also contained an unidentified insect. The report stated that Beijing Yiqing Food Group had sent personnel to inspect the beverage but remained skeptical about its authenticity and whether it had been opened.
Li, head of the quality control department at Beijing Yiqing Food Group, also stated in media reports that from a production process perspective, authentic Beibingyang soda could not contain insects. The bottles are inspected by electronic bottle inspection machines, which automatically detect damaged bottles or those with foreign objects; the beverage is transported through pipes with at least two filters with apertures smaller than 1 millimeter; and filling is done in a sealed environment.
The problem product could be counterfeit, or there is a possibility of consumers maliciously seeking compensation. Besides looking for other sources of the problem, should companies also self-inspect their production and management systems, rather than blindly insisting that their production processes "cannot" produce insect-containing soda, or hoping to simply compensate and brush off consumers?
9
**20,000-Square-Meter Lianhua Jingxuan Announces 24-Hour Operation**
Last weekend, the 20,000-square-meter new retail supermarket Lianhua Jingxuan Future Store in Hangzhou, which had just opened a month ago, suddenly switched to 24-hour operation.
Moreover, not only the self-operated supermarket section, but also the dine-in seafood and Japanese food, as well as partner merchants like NetEase Weiyang, all switched to 24-hour operation.
24-hour convenience stores are not unusual, but a 20,000-square-meter supermarket operating 24 hours is the first in the country.
Especially, Jingxuan's extensive food and beverage operations require significant manpower, and its underground location means air conditioning and ventilation must run continuously. Switching to 24-hour operation will inevitably double labor and electricity costs.
Why this decision?
**According to an insider who revealed to Tiaoxi E-commerce, poor performance at the new store is the direct reason for Jingxuan's switch to 24-hour operation. Currently, its overall revenue is less than half that of a traditional supermarket of similar size.** Internally, they hope to increase per-store output by extending operating hours.
Lianhua Jingxuan opened on August 15 this year, with considerable promotional efforts: including renting an entire subway train on Hangzhou Line 1, promoting through local new media influencers, and leveraging Lianhua Supermarket's influence in Hangzhou, making the new store's opening known throughout the city.
After Jingxuan opened, several store visit articles noted strong foot traffic, not inferior to Hema's new store openings.
Jingxuan rented an entire subway train in Hangzhou, where citizens could take photos with the whale logo for a chance to win a free opening meal.
But from the results, Jingxuan has been more praised than profitable.
**Consumers came for the food, the 20,000-square-meter one-stop shopping, and the "future supermarket" gimmick, but there isn't much that truly drives them to order or entices them to return:**
Although Hema has not yet entered Hangzhou, seafood being freshly prepared in supermarkets is not new to Hangzhou residents. Green&Health (another premium supermarket brand under Lianhua), which opened in May this year, focuses on a "restaurant model" and has already given Hangzhou residents a taste.
Jingxuan's dining experience, aside from being larger and more varied, has no breakthrough—ultimately, taste is the core competitiveness of dining.
A 20,000-square-meter supermarket with everything (dining, bar, beauty, home, entertainment) sounds novel at first, but shoppers quickly realize it's a "fake supermarket, real mall."
Jingxuan breaks the traditional supermarket system and framework, bringing customers a long-lost freshness. Whether once or several times, at least people are willing to come and browse, which is a good start.
But under such an eclectic organizational form, how to profit is a brand-new question.
**The 3rd (CFIC) China FMCG + Internet Conference** will be held in Chongqing in November 2017. The conference will closely focus on the theme "New Forces, New Ecosystem," inviting **1000+ distributors, 500+ brand owners, 200+ B2B platform founders, and 100+ investment and financing institutions** to explore a new chapter of cross-industry integration!
**Core Topics of This Conference:**
>   * **How can the FMCG industry leverage B2B to achieve new growth opportunities**
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>   * **How to build the new supply chain behind new retail**
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>   * **How can intra-city logistics help B2B achieve leapfrog development**
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**Highlights of This Conference:**
>   * **The industry's first "2017 China FMCG B2B Industry Competitiveness White Paper"**
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>   * **Case sharing of excellent transforming and upgrading distributors**
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>   * **Conference + Exhibition upgrade: Hall 6 Internet Technology Exhibition strengthens networking**
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>   * **Alibaba Retail Link, Global Logistics Properties Finance, Eternal Asia Supply Chain, Best Store Plus, Yijiupi, Hdware: leaders from various fields will deliver speeches and share pioneering views.**
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**Registration is now open. Long press the QR code below or click "Read Original" to register.**
Add friend with note "Conference Registration"
Click the links below to review the highlights of the 1st and 2nd FMCG + Internet Conferences:
[2016 "FMCG + Internet" Summit Forum](<https://mp.weixin.qq.com/s?__biz=MzA5MzU0MTAzMw==&mid=2651492812&idx=1&sn=fcccdf73cb4b966404380318a23f74f5&chksm=8ba2760abcd5ff1c025d07f41cf116c61b23be674a6664030aa23ee90ec429e9390c3c27909d&mpshare=1&scene=1&srcid=020881NSpEgpuJyOWSgv55sX&key=3d4806ec6bb3b1964253f17b3861dd564762f71dbc4f8c894685242e2ab3d505142ac8bcee653dca29c660bd7172021f74a5edb43b7ffe40aba60fa537ab3b6b13cf459455b38917b800ef19880dbbad&ascene=0&uin=NzMwNzY1MjU%3D&devicetype=iMac+MacBookPro13%2C1+OSX+OSX+10.12.2+build\(16C67\)&version=12010310&nettype=WIFI&fontScale=100&pass_ticket=KQOs74H6xtGL0xNZBKRgPszxAT3j4ffcJGgEYDkf2AI%3D>)
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