Partnership leveraging L Catterton’s operating know-how will help entrench Viee’s leading position in Sichuan and Chongqing and facilitate expansion in nearby provinces
CHENGDU, China, Aug. 6, 2024 /PRNewswire/ — L Catterton, a leading global consumer-focused investment firm, today announced that it has made a strategic investment in Viee, a beverage company with an eponymous brand of plant-based drinks most frequently consumed alongside spicy cuisines in southwestern China. Working closely with each other, L Catterton will partner with Viee to solidify the brand’s iconic profile and foothold in its home region of Sichuan and Chongqing, enlarge its presence in adjacent provinces, and expand across the rest of the country.
China’s market for beverages consumed alongside food has been growing and is expected to reach around $60 billion in 2028 as consumers increasingly dine out and patronize meal delivery services instead of cooking at home. Non-alcoholic drinks have also been winning market share from alcoholic beverages in the food service industry amid rising demand for healthier drinks that contain natural ingredients, especially among Gen Z consumers.
Made predominantly from peanuts and walnuts, Viee’s range of beverages are highly effective as spice and grease ‘neutralizers’ and considered by consumers in Sichuan and Chongqing as “must-have drinks” when eating the spicy dishes that characterize southwestern China’s cuisine. Coupled with the reputation for tasting great, being nutritious, as well as being additive- and preservative-free that they have earned over the past 30 years, their efficacy has led Viee to become the top-selling non-carbonated, non-alcoholic beverage brand in the region. With its strong brand equity and high quality, Viee has also come to enjoy best-in-class conversion, repurchase, and customer advocacy rates in its home region and is gaining traction in nearby provinces such as Shaanxi, Guizhou, and Yunnan.
“Viee has a large and growing base of loyal customers in a sizable and resilient category in southwestern China,” commented Scott Chen, a managing partner in the Asia fund of L Catterton. “The company has not only developed drinks which have become fairly ubiquitous in the region, but also established a vertically integrated supply chain and wide network of distributors with whom it has longstanding relationships. Earnings have been on a clear uptrend and hit a record high in 2023, attesting to consumers’ enduring demand for Viee through market cycles. The company has a proven management team, and we look forward to working closely with it to unlock further value.”
Viee founder representative Yawen Guo added, “L Catterton has a keen understanding of our industry and business. We are impressed by the comprehensive value creation plan that the firm has devised for Viee and are excited about executing it in partnership with them. By working together to solidify our lead in Sichuan and Chongqing and further penetrate the market in adjacent provinces as well as the rest of China, we believe that we will be better able to enrich our target customers’ lives, providing them with tasty and nutritious beverages which they enjoy.”
L Catterton has extensive experience building beverage brands across the world. Current and past investments in the space include Chi Forest, Glaceau Vitaminwater, Heytea, Innis & Gunn, Odwalla, Remedy, and Sweet Leaf Tea.
About L Catterton
L Catterton is a market-leading consumer-focused investment firm, managing approximately $35 billion of equity capital across three multi-product platforms: private equity, credit, and real estate. Leveraging deep category insight, operational excellence, and a broad network of strategic relationships, L Catterton’s team of more than 200 investment and operating professionals across 17 offices partners with management teams to drive differentiated value creation across its portfolio. Founded in 1989, the firm has made over 275 investments in some of the world’s most iconic consumer brands. For more information about L Catterton, please visit www.lcatterton.com.
About Viee
Sichuan Viee Beverage Food Co., Ltd is the largest plant-based beverage company in western China. Since its establishment in 1992, the company has been dedicated to providing healthy drinks using high-quality natural ingredients that are suitable for consumers across a wide range of ages. Its portfolio comprises its signature series of plant-based beverages with Vitamin E and Bifidus factor that are made predominantly from peanuts and walnuts, as well as a range of oat and soy milk products with a variety of flavors such as ginger, jasmine, osmanthus, pine nut, and sesame. Being tasty and highly effective as spice neutralizers, Viee’s drinks are consumed extensively across Sichuan and Chongqing, and are also gaining popularity in adjacent provinces, with products available at more than 550,000 points of sale in the region. For more information about Viee, please visit www.bsg-viee.com.
CONTACTS
L Catterton
Julie Hamilton (U.S.)
[email protected]
+1 203 742 5185
Bob Ong / Bonnie Gan (Asia)
[email protected] / [email protected]
+65 6672 7619 / +86 10 8555 1807
Viee
Yongqiong Zhu
[email protected]
+86 186 2817 6373
SOURCE L Catterton
