Viee receives private equity funding from L Catterton

CHINA – Sichuan Viee Beverage Food Co., a leading plant-based beverage company in western China, has secured an undisclosed amount of private equity funding from L Catterton. 

Known for producing plant-based dairy drinks from nuts and oats, Viee aims to solidify its foothold in Sichuan and Chongqing while expanding its reach across China.

Viee, established in 1992, has built a reputation as a staple brand in Western China with its portfolio of alt-milk beverages and drinkable yoghurts made primarily from peanuts and walnuts. 

These products, free from additives and preservatives, have garnered popularity due to their health benefits and ability to complement the spicy cuisine typical to the region. 

Viee’s offerings include oat and soy milk in flavors such as ginger, jasmine, osmanthus, pine nut, and sesame, marketed as neutralizers for the region’s spicy dishes.

L Catterton, the world’s largest consumer-focused private equity group, sees this investment as a strategic move to help Viee grow its presence in adjacent provinces and eventually expand nationwide. 

Scott Chen, managing partner at L Catterton’s Asia fund, praised Viee’s vertically integrated supply chain and extensive distributor network, noting the company’s record-high earnings in 2023 as evidence of enduring consumer demand.

Yawen Guo, a representative of Viee’s founder, expressed optimism about the partnership with L Catterton, emphasizing the potential to enrich customers’ lives with nutritious and enjoyable beverages. 

The investment aligns with China’s post-COVID-19 shift towards health-focused consumption, supported by the government’s Healthy China policy, which prioritizes nutritious food products.

GlobalData’s recent report highlighted a nearly 40% growth in low-calorie soft drinks from 2022 to 2023, driven by increased health awareness among Chinese consumers. 

The poll revealed that health is the main driver of plant-based food consumption in China, with 46% of consumers prioritizing health and 39% focusing on nutrition.

Furthermore, 98% of respondents indicated they would consume more vegan food if informed of its benefits.

L Catterton referenced data projecting China’s market for beverages consumed with food to reach $60 billion by 2028, fueled by a rise in dining out and meal delivery services. 

Non-alcoholic drinks are increasingly encroaching on alcohol’s share in foodservice due to the growing demand for healthier options and natural ingredients, especially among Gen Z consumers.

Nestlé’s recent introduction of six new coffee lines in China, including two vegan ready-to-drink beverages, underscores the industry’s response to these trends, featuring attributes like low sugar, low fat, and high fiber.

Guo expressed confidence in L Catterton’s comprehensive value creation plan for Viee and looks forward to executing it in partnership to unlock further value and growth opportunities. 

This comes at a time when China’s dairy industry is undergoing a strategic shift as companies pivot from focusing on infant products to catering to the growing adult and aging population. 

This change comes in response to declining birth rates and increased competition in one of the world’s largest milk markets.

New Zealand’s A2 Milk Company recently introduced milk powder products designed for the “adult and aging population” in China. 

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