Stork Nutrition delivers a system of nourishment and personal care for mothers and their babies. It offers Infant Formula alongside vitamins and dietary supplements. Brand development involved extensive consumer research in China to build the brand on strong insight into the Chinese consumer’s issues and concerns. Chinese mothers desire the security and safety of a brand they can trust.
Go to www.storknutrition.eu
The Chinese Infant Formula market will grow in value to an estimated US$22billion by 2020*. Different factors are driving this growth. Short maternity leave and more working mums means the breast-feeding rate continues to decline (currently at 28%). The new second child policy is accelerating new birth numbers. As parents seek to ensure the safest and best infant milk product for their infant, a strong trend for more ‘premium’ products has emerged.
*Source: Euromonitor (Estimate market value at 150,465.48 RMB by 2020)
Regulatory changes have led to supply restrictions, particularly for foreign brands. Some of the disruptive changes:
High prices for Chinese consumers
Currently, 70% of the imported infant formula market is controlled by foreign brands. Retail price-mark-ups of over 100% on retail prices in Hong Kong and Europe are the norm for Chinese consumers.
The ‘4-2-1’ make up of four grand-parents and two parents doting on one child means that family resources are pooled and leads to increased purchasing powers.
Logico markets it’s range of coconut waters under the brand name Cocolex. Manufactured in Vietnam in a state-of-the-art facility, its distinctive products offer health refreshment and natural hydration combined with ‘superfood’ flavours and carbonation.
Go to www.cocolex.com
Globally the coconut water is predicted to grow at 26% p.a. until 2020*. Global sales were estimated to be US$2.73 billion in 2018, growing to US$4.25billion in 2020 and US$8.3 billion by 2023**. Factors driving this are consumers’ increasing health and wellness focus combined with aggressive marketing.
In China, imported, packaged coconut water is a fresh concept. It represents a small share of the juice market in China (less than 1%). It is attractive because it is the fastest growing sector of the vast juice market which was valued at CNY 77,531 million in 2017* (US$11.5 billion). The health and wellness trend has caught on in China, not only in 1st Tier cities but also in the more affluent 2nd an 3rd Tier cities, driving interest and adoption of the category.
* Source: Euromonitor ** Source: Statista
The new frontier for processing, packaging and export. Coconut capacity worldwide is becoming increasingly constrained as global demand rises. Availability in established coconut water sources such as Thailand and the Philippines is non-existent. Vietnam is the one country that combines coconut capacity, expanding processing activity and openness to foreign investment
NSGT is backed by a team of China-based professionals with experience of and links to key State Owned and private commodity trading houses. These relationships have been garnered through years of professional and personal relationships or ‘guanxi’. NSGT intends to monetise these existing relationships on the buy side whilst seeking new supply chain arrangements abroad in alternate jurisdictions than the US/those controlled indirectly by the US.
Natural Source Group Trading (NSGT) is a vertically integrated trader and interdealer broker focussed primarily on opportunistic arbitrage existing in global agribusiness supply chains.
Global reconstitution of the agri-food supply chain is occurring due to increasing strategic competition between China and the USA. With recent trade tariff policy implemented on both sides of the Pacific, many Chinese institutional commodity buyers are having to reassess their business’s long-term viability. This has led and is leading to a decoupling of Chinese state and non-state agri-food businesses and their US counterparts – Cargill being one such entity particularly affected. This presents many opportunistic arbitrage trades as Chinese firms seek out ways to actively manage their value chains. Furthermore, due to lack of soft and hard power in these new regions, Chinese buyers are obliged to pay a premium to market prices to secure long-term access. Accordingly, NSGT has positioned itself as a conduit for this seismic shift of demand that could prove to be more and more destabilising as the years progress.
NSGT seeks to act as a broker initially but is currently seeking funding in order to implement a full trading model based out of our offices in Singapore. We are seeking sell side connections to producers in agri-foods in order to execute trades from Chinese buyers. Ideally a partnership would feature funding and linkages to a company who could supply both of the aforementioned items.
CGA is utilising its management team's sales and marketing experience in consumer products in Asia in order to grow and expand within the Asian CBD sector. CGA will also actively participate as an investor and partner through our incubator program with other CBD Companies within the region by establishing a strong presence as a source of capital and technology/product expertise.
With the worldwide market for CBD products projected to experience dramatic growth as legislative restrictions ease, China and Asia in general represents a significant opportunity, particularly for the importation of high quality American products. CBD Group Asia is currently creating a footprint within Asia to open up avenues of growth in embryonic Asian markets. Partnering with existing companies and brands in North America and Asia, as well as developing new ones, CGA intends to harness this significant growth opportunity.