Nongfu Spring, China’s largest player in the bottled water segment, is investing Rmb 1.1 billion (US$162 million) to build a 2nd production base in Sichuan province.
The new facility in Dujiangyan will be completed within 5 years and will have an annual output exceeding Rmb 1.5 billion (US$221 million). Its main products include natural drinking water and beverages.
Currently, its largest plant is the Emeishan plant, also located in Sichuan.
In total, Nongfu Spring has production bases near 12 high-quality water sources, including Qiandao Lake in eastern Zhejiang province, Danjiangkou in central Hubei province, and Changbai Mountain in northeastern Jilin province.
Nongfu Spring sales revenue jumped 9.4% to Rmb 16.6 billion (US$2.46 billion) while its net profit grew 15% in the first half of 2022 compared to a year ago.
Nongfu’s dominance has also led to other major players like Wahaha Group to venture into other segments like children’s wear and personal care. Established in 1987, Wahaha has lost its market leadership position in its core bottled water business to Nongfu Spring in recent years.
