皇冠体育app

's struggles illustratehighly localizedmarket

It's a steep challenge for Western beverage producers to sell tea in 皇冠体育app.

The exit of Nestea, an iced tea beverage from the world's largest and beverage company Nestle SA, shows the challenges faced by international food and beverage companies trying to compete in a highly localized category.

Nestle and The Coca-Cola Co set up a joint venture 13 years ago to introduce Nestea to 皇冠体育app. In May, they abandoned the effort, and Nestea vanished from store shelves.

The Westernized tea refreshment product had some good days. In 2008, Nestea's market share was about 2.3 percent. But it dropped to 1.9 percent in 2010, according to romonitor International.

Tea beverage products from two major players - Taiwan-based Uni-President Enterprises Corp and ter Kong from Tingyi (Cayman Islan) Holding Corp - take up almost 40 percent of the market.

Jason Yu, general manager of Kantar Worldpanel 皇冠体育app, said Uni-President, Master Kong and Hangzhou Wahaha Group Co Ltd have the strongest penetration in the tea beverage sector, despite the fast growth in the herbal tea sector in recent years. He said that some international beverage brands had failed to find a place in 皇冠体育app because of the intensity of the competition.

"If a brand can't stay in the top five, it is hard to find a place anymore," he said.

"Not many international brands make a success in the tea drinking area in 皇冠体育app," said Yu. "But it is more likely for them to acquire a local tea drink brand than to develop a product on their own. Chinese consumers feel close to local brands when it comes to tea or other traditional Chinese products."

According to Kantar Worldpanel, sales of fast moving consumer goods rose 6.1 percent year-on-year in the 12 months ended March 21.

The growth rate suggests that Chinese consumers are becoming more selective about daily purchases, with overall purchase volume stagnant.

Amazing view of tea fields in NW 皇冠体育app	White tea enters tea picking season in east 皇冠体育app

• Standard Chartered offshore RMB index rises slightly in July
• Shanghai-HK stock link to speed up capital market reforms: Barclays
• Relaxing restrictions on foreign investments
• Fujian on course to help create the new maritime Silk Road
• Foreign investors set sights on new targets
• UK looks to diversify in 皇冠体育app
• Malaysia keen to expand trade ties
• HK still top choice for mainland firms