Nongfu Spring to invest US$703M in mega bottling facility in China

CHINA – Chinese bottled water giant, Nongfu Spring, is embarking on a substantial investment of 5 billion yuan (approx. US$703 million) for the establishment of a new factory in Jiande City, Zhejiang Province.  

The project, slated to unfold in two phases over five years, will include production, processing, and manufacturing, aiming to create an expansive industrial base for the production of drinking water and various beverage products. 

The factory, strategically located in Jiande City’s Chengnan New District, spans an impressive total land area of approximately 666,667 square meters.  

The successful realization of this facility is contingent upon Nongfu Spring’s acquisition of state-owned land, adhering to legal provisions. 

Nongfu Spring is renowned for manufacturing a diverse range of packaged beverage products in China, including drinking water, tea, juices, and functional beverages.  

The company’s board of directors formalized an investment agreement on December 31, 2023, with the People’s Government of Jiande City.  

This collaborative effort aims to leverage the region’s high-quality natural water resources, specifically Thousand Island Lake, fostering an expansion in production capacity and enhancing the company’s ability to cater to consumer demands. 

Founded in 1996, Nongfu Spring is China’s largest packaging water supplier, holding the number one spot for market share and is one of the top 20 beverage companies in China. 

In terms of retail sales in 2019, Nongfu Spring ranks among the top three in the Chinese market for tea beverages, functional beverages and juice beverages. 

Nongfu Spring is constantly innovating and diversifying its product offerings. In addition to drinking water, it has launched ready-to-drink tea, functional drinks, fruit juice, plant protein, coffee and other categories. 

According to the company’s website, it has established a comprehensive national sales channel, using big data systems to continuously improve its distribution efficiency.  

As of 2019, it managed more than 4,000 dealers and more than 10,000 front-line sales personnel and sales management personnel across the country through its mobile phone terminal system.  

Nongfu Spring manages the distributor’s inventory through a big data analysis system and strictly controls the age of product terminals to improve operational efficiency. 

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