Drinks in tune with the times - SIG filling and packaging production equipment have helped the Chinese beverage company Huiyuan to grow

Marketing concepts anticipating future trends and SIG production equipment have helped the Chinese beverage company Huiyuan to grow significantly over the past twelve years and become a premier player on the Chinese market.

The Chinese soft drinks market has been booming in recent years and is expected to continue its growth at an annual rate of about 10%. Apart from this general rise in consumption, the range of available products has also increased and now includes a large variety of juices, tea drinks, bottled water, health drinks, and sports drinks. The international brands (Coca-Cola, Pepsi, and Nestlé) feature on the market as well as domestic productssupplied by small regional producers and several large companies.

One of the biggest players in this market - and according to company information the largest producer of fruit juice in China - is Huiyuan Beverage & Food Group Co Ltd., a private company established in 1992 with several production sites, mainly in eastern China. For 2003 alone, Huiyuan announced the launch of seven new projects in different regions to meet the rising demand. In addition to beverages, the company also processes fruit and vegetables. Huiyuan offers a total of about 270 different products. The production of concentrated apple juice alone amounts to approximately 50,000 tons per year. Huiyuan not only supplies the Chinese market but has also become an exporter of fruit juice concentrates.

The business relationship with the SIG group dates back to 1996 when SIG Combibloc installed the first filling line for carton packs. And as the first customer in Asia, Huiyuan launched the new Combifit premium format for 500 ml packs in 2002. Today, the company is one of SIG Combibloc's most important customers in Asia. After the successful installation of three SIG Simonazzi aseptic filling lines, Huiyuan bought an array of SIG equipment for its Laiwu plant in the northern Chinese province of Shandong. The investment comprised two PREMAX 48 injection molding machines for 500ml preforms and a BLOMAX 16 D stretch blow molder. They are used to produce 500 ml and 330 ml bottles with 38 mm neck for aseptic filling, again performed by a SIG Simonazzi line.

The importance of a single interface

Xinli Zhu, president of the Huiyuan Group, said they were very happy with the quality of the SIG line which produces 36,000 to 40,000 bph. A key factor contributing to the decision in favor of SIG was the opportunity to obtain the full line from a single source right through to the start-up. Zhu added that this successful cooperation would certainly also be an influential factor in future investment projects.

The Huiyuan facility in Laiwu

With a total of fourteen aseptic lines, Huiyuan has become the most important Chinese filler in this segment. In addition to fruit juices, the company's ice tea products, based on green and black tea, are an important pillar of the range, tea being the traditional drink in Asia. Sales of carbonated drinks, on the other hand, are currently growing at a lower rate.

At the same time a new beverage segment is developing in the market. With the gradual opening up to Western industrialized countries, the "functional drinks" concept has also arrived in China and is particularly appreciated by younger consumers. According to the statistics, it is mainly people in the upper income brackets with a higher educational background that are interested in keeping fit and healthy. They are thus specifically targeted for sports drinks, that help replenish the vitamins, electrolytes and minerals lost during sports activities, and nutrient drinks containing caffeine and other stimulating ingredients.

The potential of this market is tremendous. According to the China Soft Drink Industry Association, sales are expected to double from 1.5 billion yuan to 3 billion yuan this year. While the global average per capita consumption of these drinks is about 7 liters, the average in China is only 0.5 liters - but is rising. This trend relies heavily on advertising, and Huiyuan mainly focuses on the popular time following the seven-o'clock news and the weather forecast to place its commercials.

For this segment Huiyuan has come up with an unusual concept. Under the name "He+&She-" two gender-specific drinks are offered, distinguished in the classic fashion by blue or pink packaging. The advertising photo shows corresponding PET bottles protruding from the pockets of two fashionably designed jeans. For the promotional campaign, Huiyuan also produced three special "He+&She-" pop songs so that the targeted consumers directly link the trendy drink with a tune. This could make the "He+&She-" concept a big hit in more than one way.

Geoffrey Chan, Sales Director SIG Corpoplast China
Xinli Zhu, President of the Huiyuan Group

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