Our Markets & Products


Infant Nutrition
& Stork Nutrition

Our Brand

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

Dynamic market

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)

Supply constraints

Regulatory changes have led to supply restrictions, particularly for foreign brands. Some of the disruptive changes: 

  • Domestic Infant Formula OEM manufacture being illegal
  • Reduction in the number of manufacturers and brands allowed as China seeks to eliminate smaller players and support domestic brands. 
  • No manufacturer is allowed to market more than 3 brands and 9SKUs in China.    

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.

Coconut Water
& Logico Bioproducts

Our Brand

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

Dynamic Market

Globally the coconut water market is predicted to grow at 26% p.a. until 2020*. US sales were estimated to be $986million in 2016, growing to $1,978 million by 2019**. 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 US$12 billion* in 2016.    The health and wellness trend has caught on in China, not only in 1st Tier cities but also in the more affluent 2nd and 3rd Tier cities driving interest and adoption of the category.

* Source: Euromonitor  ** Source: Statista

Vietnam

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

Natural Source
Group Trading

Activities

NSG Trading has two core elements to its business model.  It encompasses new, patented technology that reduces pathogen risk in blending processes for infant formula and an innovative model for trading in agricultural products.

1. The building and operating of a powder blending facility based in Frankfurt, German.  This facility will employ patented Molecular Dispersion Technology (MDT).  The benefit of this technology is the elimination of harmful pathogens within the blending process, an increasingly common and critical issue for the infant milk formula (IMF) category.  Three further blending units are planned.  These plants will be capable of blending differing types of powders not just IMF e.g. for the powdered components of 3D printing.

 2. Opportunistic commodity trading.  NSG offers a service to act as an intermediary for the trade of demineralised whey and other products between Chinese customers and international ingredient producers.  Our intention is to introduce ‘streaming’ as a trading strategy in the dairy sector to address the funding gap for the many European producers who do not possess the working capital required to meet growing demand in Asia.   

 

Natural Source Group © 2017