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New child policy accelerates German juice maker Capri Sun's expansion in the Chinese market
Capri Sun, a German company that makes wholesome fruit juices for kids, will speed up its expansion in the maturing China market as it sees potential for great profits.
For Capri Sun, which is sold in foil pouches, children aged between six and 14 are target consumers.
Following China's new policy that encourages married couples to have two children as against one in the past, the juice maker is bullish on the long-term growth of the China market.
"The second-child policy will not have an immediate impact on us, but in the next five years, it will definitely help drive our sales growth," said Chen Tao, managing director of Capri Sun China.
Founded in 1969, Capri Sun entered China in 2005. But it did not have widespread distribution channels until it collaborated with Reignwood Group, which distributes energy drink Red Bull in China.
Last year, Capri Sun launched its own operations and sales in supermarkets, shops and cinemas.
China has about 300 million children aged under 14, who constitute a niche multi-beverage market with significant potential for growth.
The children's milk market in China is worth more than 4 billion yuan ($613 million), according to a report by chinabgao.com, a website that specializes in market analysis.
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