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Private equity firm invests in Chinese plant-based drinks maker Viee

Viee, a plant-based beverage company based in Sichuan, China, recently received a strategic investment from private-equity firm L Catterton. While financial details were not disclosed, L Catterton plans to partner with Viee to strengthen the brand’s presence in Sichuan and Chongqing, as well as expand its reach to adjacent provinces and across the country.

Viee’s range of beverages, primarily made from peanuts and walnuts, are designed to complement the spicy cuisine typical of the Sichuan and Chongqing regions. The company’s products are sold both on- and off-trade, with a fairly even split between the two channels.

Founded in 1992, Viee claims to be the largest plant-based beverage company in western China. In addition to their peanut and walnut-based drinks, Viee also offers a variety of oat and soy milk products in flavors such as ginger, jasmine, osmanthus, pine nut, and sesame.

Scott Chen, managing partner at L Catterton’s Asia fund, praised Viee for its vertically integrated supply chain and wide network of distributors. He noted that the company’s earnings have been on an upward trend, reaching a record high in 2023, indicating strong consumer demand for Viee’s products.

L Catterton, a consumer-focused investment firm managing approximately $35 billion of equity capital, has made over 275 investments in consumer brands globally. The firm’s partnership with Viee aims to unlock further value for the company and capitalize on the growing trend of healthier beverage options in China.

According to a recent GlobalData report, Chinese consumers are increasingly opting for healthier beverage choices, driving growth in categories such as low-calorie soft drinks, fruit-based drinks, and juices. In 2023, low-calorie soft drinks saw a 39.6% annual growth in volumes, while fruit-based categories experienced growth rates of 9.6% for juice and 11.8% for nectars, outpacing carbonates at 1.5%.

Overall, Viee’s partnership with L Catterton and the growing demand for healthier beverages in China position the company well for continued success and expansion in the plant-based beverage market. With a focus on quality, innovation, and consumer satisfaction, Viee is poised to make a significant impact in the industry.

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