Nongfu Spring

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Nongfu Spring Co., Ltd.
Native name
农夫山泉股份有限公司
TypePublic
IndustryBeverages
FoundedSeptember 26, 1996 (1996-09-26)
FounderZhong Shanshan
HeadquartersHangzhou, China
Key people
Zhong Shanshan (Chairman and CEO)
ProductsBottled water, Beverages
Revenue$3.4 billion (2019)
OwnerZhong Shanshan
Websitenongfuspring.com
Nongfu Spring Co., Ltd.
Simplified Chinese农夫山泉股份有限公司
Traditional Chinese農夫山泉股份有限公司
Nongfu Spring water bottles
Shuirong C100

Nongfu Spring (simplified Chinese: 农夫山泉; traditional Chinese: 農夫山泉; pinyin: Nóngfū Shānquán; lit. 'Farmer Spring') is a Chinese bottled water and beverage company headquartered in Xihu District, Hangzhou, Zhejiang province.[1][2] It is owned and chaired by founder Zhong Shanshan[3]

As reported by Reuters, Nongfu Spring filed an initial public offering[4] with the Hong Kong Stock Exchange.[5] The company raised approximately US$1bn by pricing its IPO at the HKD21.50/share, at the top end of its IPO range.

As set out in it its prospectus,[6] the company recorded revenue of 24 billion yuan (US$3.4 billion) in revenue in 2019, up from 20.47 billion yuan a year earlier. The prospectus shows Nongfu Spring recorded profit of 4.95 billion yuan in 2019, a 20.6% increase on its 3.61 billion yuan profit the previous year.

History[edit]

The company was established on September 26, 1996.[7] It launched its first packaged drinking water product in 1997 with water sourced from Zhejiang Thousand-Island Lake and became a joint stock company Nongfu Spring Co., Ltd in 2001.[8]

It developed and launched a range of beverage products, including Farmer's Orchard, Scream and Oriental Leaf and used marketing slogans, most notably ‘a little bit sweet’ to popular effect.[9]

Through growth and acquisition Nongfu Spring has become China's largest bottled water producer and a top three producer in the bottled tea and juice market.[10]

According to Nielsen research data, Nongfu Springs natural water became in 2012 the most popular bottled water in China.[11]

On April 10, 2013, the Beijing Times accused the company of intentionally not adopting Chinese national water standards and instead adopting the lower standards of Zhejiang province. This started a dispute between the company and the newspaper.[12] In November 2013, the company accused the Beijing Times of defamation and also filed a lawsuit in the Beijing Second Intermediate People's Court against the newspaper, which demanded 60 million yuan (US$9.85 million).[citation needed]

In 2016, Chairman of the company, Zhong Shanshan, announced a new strategy to diversify the company and to globalize operations[13] Nongfu Spring is part of the Yangshengtang group of companies,[14] which also includes pharmaceutical companies Beijing Wantai[15] and Hainan Yangshengtang Pharmaceuticals.[16]

Sponsorship of major sports has become a feature of Nongfu Spring's marketing,[17] and in 2019 Nongfu Spring signed a two-year deal with the International Swimming Federation (FINA) as partner for FINA major events in 2020 and 2021.

Nongfu Spring has diversified its product base to include coffee and tea beverages, fruit products, yogurt and rice.[18] The company announced its revenue and net profit decreased in the three months ending March 31, 2020, compared to the same three-month period in 2019 due to the COVID-19 pandemic. Mainland production plants closed at Chinese New Year were returned to normal operation.[19]

In September 2020, Nongfu Spring raised approximately US$1bn by pricing its IPO at the HKD21.50/share, at the top-end of its IPO range.[20]

Products[edit]

Nongfu Spring's first packaged drinking water product was launched in 1997. The company ceased to remove natural minerals from its bottled water in 1999 and marketed its water products as natural water.[21]

Nongfu Spring now offers a full range of water products from its 10 natural water sources across China.[22] It is currently finalizing purchase of its first overseas water source and production facility, Otakiri Springs, in New Zealand.[23]

In 2003, it launched its Nongfu Orchard range of fruit drinks with fruit grains. The following year it targeted the teenage market with its range of ‘Scream’ drinks as it sought to expand its consumer base.[24]

In 2008, it launched water-soluble vitamin C drinks, Shuirong C100 (C: 水溶C100, P: Shuǐróng C100, "Soluble C100").[25]

In 2010, it launched "Victory Vitamin Water" (维他命水) beverage.[26]

In 2011, "Oriental Leaf" (东方树叶) sugar-free tea beverage.[27]

In 2012, "Whisked Milk Tea" (打奶茶) series of milk tea beverages.[28]

In 2014, the company launched its 17.5°oranges, its first entry into the fruit market and an expansion of its product offering.[29]

Fruit flavored soft drinks

In 2015, "Nongfu Spring" Natural Mineral Water (in glass bottles),"Nongfu Spring" natural drinking water (suitable for infants and young children), and "Nongfu Spring" natural mineral water with the sports cap.[30]

In 2016, "Nongfu Spring" Natural Mineral Water (Limited edition in Monkey Year), 17.5°NFC (Not From Concentrate)100% Orange Juice & Apple Juice, Tea π(fruit flavored tea), Fruit flavored soft drink (水葡萄、水荔枝、水柚子、水柠檬). Nongfu Spring 100% NFC Orange Juice, Apple Banana Juice & Mango Blended Juice.

In 2018, in response to consumer demand, the company expanded its range of natural water products to include a 12L disposable barrel.[31]

In 2019, Nongfu Spring it entered the coffee market for the first time with its TanBing range of coffee products.[32]

References[edit]

  1. ^ "Nongfu Spring Co., Ltd." Bloomberg Businessweek. Retrieved on April 10, 2014. "No. 148 Shuguang Road Hangzhou, 310007 China"
  2. ^ "联系方式." Nongfu Spring. Retrieved on April 10, 2014. "公司地址 杭州市曙光路148号 (310007)"
  3. ^ "Zhong Shanshan". Forbes. Retrieved 2020-07-01.
  4. ^ "Nongfu Spring plans $1 bln Hong Kong IPO as city's capital markets start to recover". Reuters. 2020-05-04. Retrieved 2020-07-01.
  5. ^ "New Listing Information - AP & PHIP". www1.hkexnews.hk. Retrieved 2020-07-01.
  6. ^ "Application Proof of NONGFU SPRING CO., LTD" (PDF). hkex news. 2020. Retrieved July 1, 2020.
  7. ^ "A foray into new waters|Companies|chinadaily.com.cn". usa.chinadaily.com.cn. Retrieved 2016-03-04.
  8. ^ "nongfu spring co., ltd. 農夫山泉股份有限公司 - HKEXnews" (PDF). HKEX News. 2020. Retrieved Jul 15, 2020.
  9. ^ "How sweet! Nongfu plans to diversify - China - Chinadaily.com.cn". www.chinadaily.com.cn. Retrieved 2020-07-15.
  10. ^ "Nongfu Spring plans $1 bln Hong Kong IPO as city's capital markets start to recover". Reuters. 2020-05-04. Retrieved 2020-07-15.
  11. ^ "农夫山泉|Nongfu Spring". www.nongfuspring.com. Retrieved 2020-07-15.
  12. ^ Zhao, Lei. "Nongfu Spring accuses Beijing Times of defamation." China Daily. November 5, 2013. Retrieved on April 10, 2014.
  13. ^ "Nongfu Spring carving natural path to world|Business|chinadaily.com.cn". europe.chinadaily.com.cn. Retrieved 2020-07-15.
  14. ^ "Nongfu Spring carving natural path to world - China - Chinadaily.com.cn". www.chinadaily.com.cn. Retrieved 2020-07-15.
  15. ^ "Beijing Wantai Biological Pharmacy Enterprise Co Ltd". Bloomberg News. 2020. Retrieved Jul 15, 2020.
  16. ^ "Hainan Yangshengtang Pharmaceutical Co Ltd". Bloomberg News. 2020. Retrieved Jul 15, 2020.
  17. ^ "FINA sign sponsorship deal with Nongfu Spring to cover major events". www.insidethegames.biz. Mar 8, 2019. Retrieved 2020-07-15.
  18. ^ "农夫山泉|Nongfu Spring". www.nongfuspring.com. Retrieved 2020-07-15.
  19. ^ "Nongfu Spring plans $1 bln Hong Kong IPO as city's capital markets start to recover". Reuters. 2020-05-04. Retrieved 2020-07-15.
  20. ^ "Smartkarma, the Independent Investment Research Network". www.smartkarma.com. Retrieved 2020-09-08.
  21. ^ "农夫山泉|Nongfu Spring". www.nongfuspring.com. Retrieved 2020-07-15.
  22. ^ "农夫山泉|Nongfu Spring". www.nongfuspring.com. Retrieved 2020-07-15.
  23. ^ "Decision Report Creswell NZ Limited Otakiri Springs Water" (PDF). Whakatāne District Council. 2020. Retrieved Jul 15, 2020.
  24. ^ "农夫山泉|Nongfu Spring". www.nongfuspring.com. Retrieved 2020-07-15.
  25. ^ Thallapelly, Hari (2016-11-01). "Nongfu Spring's Juices: Water Soluble C100". Nongfu Spring. Retrieved 2020-07-15.
  26. ^ Thallapelly, Hari (2016-11-01). "Nongfu Spring's Functional Beverages: Victory Vitamin Water". Nongfu Spring. Retrieved 2020-07-15.
  27. ^ Thallapelly, Hari (2016-10-30). "Nongfu Spring's Tea Beverages: Oriental Leaf". Nongfu Spring. Retrieved 2020-07-15.
  28. ^ Thallapelly, Hari (2016-10-30). "Nongfu Spring's Tea Beverages: Whisked Milk Tea". Nongfu Spring. Retrieved 2020-07-15.
  29. ^ "Nongfu Spring launched 17.5° Orange helping local agricultural industry". www.infonews.co.nz. Retrieved 2020-07-15.
  30. ^ "Nongfu Spring bottled water range".
  31. ^ "农夫山泉|Nongfu Spring". www.nongfuspring.com. Retrieved 2020-07-15.
  32. ^ "农夫山泉|Nongfu Spring". www.nongfuspring.com. Retrieved 2020-07-15.

External links[edit]