The beverage brand with the fastest growth in China is Genki Forest. Chinese Generation Z and Millennials aiming for healthier consumer goods have been won over by the low-calorie, low-sugar products they produce. Currently, 40 nations throughout the world, including the United States, Japan, Australia, and the United Kingdom, have Genki Forest products available. The corporation raised USD $6 billion at the beginning of 2021.
Binsen Tang, a seasoned investor and digital entrepreneur, launched Genki Forest in 2016. Prior to that, he founded ELEX Technology, China’s third-largest gaming company, which he later sold for $400 million to the public in 2013. Tang, who was dissatisfied with Tencent and NetEase’s domination in the gaming industry, thought that consumer products, particularly the beverage industry, which had not yet been altered by technology, would be where the future lay.
Tang and his group of internet entrepreneurs originally struggled to build a product that connected with customers because none of them had any prior experience in the drinks sector. They eventually introduced their first product, the “Burning Tea,” a low-calorie, low-sugar oolong tea, through crowdfunding on the Chinese social media network Weibo. It had one of the highest prices on the beverage market at the time, at 6 yuan (USD $0.94). This high price is a result of the use of erythritol, a sugar substitute that, despite having advantages over other regularly used substitutes like xylitol, maltol, and aspartame in terms of flavor and health benefits, is 70 times more expensive (used by Cola-Cola).
No one in Tang’s group of internet entrepreneurs had any prior experience in the drinks industry, so they initially struggled to create a product that connected with customers. They eventually used crowdsourcing on the Chinese social media platform Weibo to launch their first item, the “Burning Tea,” a low-calorie, low-sugar oolong tea. At 6 yuan (USD $0.94), it had one of the highest prices on the beverage market at the time. The use of erythritol, a sugar substitute that is 70 times more expensive despite having advantages over other commonly used substitutes like xylitol, maltol, and aspartame in terms of flavor and health benefits, is the cause of this high price (used by Cola-Cola).
In the past, newcomers like Nongfu Spring and Wahaha initially had low brand recognition because the beverage market was dominated by well-known brands like Coca-Cola. How did Genki Forest become the beverage firm in China with the quickest rate of growth? Coca-Diet Cola’s Coke is an example of how beverage corporations have previously joined the sugar-free market through subsidiary brands. The sugar-free, calorie-free sector, which caters to a clientele that is becoming more health aware, is where Genki Forest found a niche market, though.
In the past, while well-known brands like Coca-Cola dominated the beverage market, entrants like Nongfu Spring and Wahaha initially had little brand recognition. How did Genki Forest become into the Chinese beverage company with the fastest rate of growth? Coke, a subsidiary brand of Coca-Diet Cola, is an illustration of how beverage companies have previously entered the sugar-free market. Genki Forest, however, discovered a niche market in the sugar- and calorie-free industry, which serves a customer base that is increasingly more health conscious.
Genki Forest, a self-described technology corporation, places a premium on its data-driven, high-tech manufacturing. It used to rely on Original Equipment Manufacturers (OEMs), but since 2020, it has built five of its own factories and gained control of its production lines. This has allowed the company to produce its sparkling water without the use of preservatives while also drastically reducing production costs and increasing capacity.
A technological company that calls itself Genki Forest prioritizes its data-driven, high-tech production. Original Equipment Manufacturers (OEMs) were once its primary source of supply, but since 2020, it has built five of its own facilities and taken control of its production lines. The company has been able to create its sparkling water without the use of preservatives thanks to this, which has also significantly increased capacity and decreased manufacturing costs.