L Catterton, a global consumer-focused investment firm backed by LVMH, has announced a strategic investment in Viee, a beverage company with a popular brand of plant-based drinks consumed alongside spicy cuisines in southwestern China.
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L Catterton has previously invested in other beverage brands including Glaceau Vitamin Water, Remedy, Heytea, and Sweet Leaf Tea.
L Catterton’s stake aims to solidify Viee’s position as the top-selling non-carbonated, non-alcoholic beverage brand in Sichuan and Chongqing, and facilitate its expansion into nearby provinces.
Viee’s range of beverages, made predominantly from peanuts and walnuts, are considered “must-have drinks” when eating the signature spicy dishes that characterise the cuisine of southwestern China.
The investment comes as China’s market for beverages consumed alongside food is expected to reach around USD60 billion by 2028, driven by the growing popularity of dining out and meal delivery services.
Non-alcoholic drinks have also been gaining ground in the food service industry, as health-conscious consumers, especially younger generations, demand more natural and nutritious options.
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“Viee has a large and growing base of loyal customers in a sizable and resilient category in southwestern China,” commented Scott Chen, a managing partner in the Asia fund of L Catterton.
“The company has not only developed drinks which have become fairly ubiquitous in the region, but also established a vertically-integrated supply chain and wide network of distributors with whom it has longstanding relationships. Earnings have been on a clear uptrend and hit a record high in 2023, attesting to consumers’ enduring demand for Viee through market cycles. The company has a proven management team and we look forward to working closely with it to unlock further value.”