In October 2007, CVC Asia Pacific invested in Zhuhai Zhongfu, the leading beverage packaging company in China. Established in 1982, Zhongfu was as the first PET bottle supplier to Coca-Cola in China. Today, Zhongfu is the largest PET beverage packaging manufacturer in China with combined revenues of US$494 million. It is the number one supplier to Coca Cola and number two supplier to Pepsi and Uni-President in China.
Zhongfu offers a wide range of beverage packaging solutions to its customers, including: CSD bottles, supplied to Coca-Cola and Pepsi; ‘hot-fill bottles’ and ‘OEM’ filling for prepared teas and juices; water bottle/jug for bottled water products; PET bottles for other specialised applications; other related beverage packaging products such as closures, labels and shrink wrap film. These products are supplied through Zhongfu’s national network of 85 factories located in over 30 cities across China.
The Chinese non-alcoholic beverage market is the second largest and one of the fastest growing in the world today, largely driven by increasing disposable income and a modernising lifestyle among Chinese consumers. Equally, China’s per capita beverage consumption in 2008 was only 32 litres, about one-tenth that of the US market, leaving ample room for further growth. In addition, Coca-Cola and Pepsi have committed to invest a combined US$3 billion in China over the next three to four years.
The founders of Zhuhai Zhongfu created an extremely successful enterprise centred on PET packaging which, over 25 years, has grown to hold a unique position in terms of market share, profitability and customer respect in the burgeoning Chinese market.