Proterra Investment Partners Asia has completed three new investments, indicative of the high growth potential within the Asian food sector. These include nutrition and supplements business Zhong Hong, premium soy sauce brand Wuan Chuang and healthy beverage solutions company No Ordinary Drinks (NOD).
Proterra Asia is the Asian arm of global food and agribusiness private equity fund manager Proterra Investment Partners. It has most recently closed new investments in Chinese yogurt brand Simple Love and “Asia’s first” line of oat milks for baristas.
“The recent transactions made in Zhong Hong, NOD and Wuan Chuan joint ventures are fully aligned with our strategy of focusing on the fastest-growing sub-sectors within the food sector in Asia,” says Tai Lin, managing partner at Proterra Asia.
“Our sector specialism and on-the-ground networks enable us to seek out and build successful partnerships with exciting businesses with significant growth potential.”
“The attitudes of Asian consumers are developing rapidly,” he continues. “As part of our investment approach, we are actively pursuing megatrends such as the growing consumer focus on nutrition and healthy lifestyles as well as the high demand for premium, high-quality food and drink products.”
“We look forward to helping to support and grow these businesses as we continue our approach of investing in the future of the Asian food sector.”
Profitable sector of the future
The Proterra Asia Food Strategy is accessible to European investors via Proterra Asia’s distribution partnership with global investment management business Fidante Partners.
Proterra Asia’s Food Strategy is to capitalize on the emergence of a new generation of consumers looking for safe, high-quality food products with a focus on health, nutrition, convenience, social impact and sustainability.
The firm previously announced partnership with a leading alternative protein company to build a large-scale plant protein extraction facility in Singapore to meet the growing demand across Asia for the plant-based egg product Just Egg.
This latest round of investment includes:
Zhong Hong
Zhong Hong is a branded health and nutritional supplements company based in China.
Proterra Asia acquired a majority stake in Zhong Hong from China Tuhsu, a COFCO group company, which following the transaction, retains a minority stake.
Zhong Hong was the first company to launch propolis (highly sought-after natural bee by-product) capsules in China.
The company has competitive positioning in several subsectors, including propolis, protein powder and herbal health, under its Zhong Hong, Ke Yi Kang, Fu Yuan and Xian Wan brands.
The company has grown its revenues at over 20% CAGR since 2013. Zhong Hong holds plans to scale the company through bolt-on acquisitions.
No Ordinary Drinks
Two months ago, Proterra Asia led a nine-figure Pre-Series A funding round for NOD – a healthy beverage solutions company based in Shanghai, China.
NOD’s existing products include all-natural, stevia-sweetened flavored waters and all-natural sparkling juices.
The new capital will be used to ramp up production, fulfill channel expansion and accelerate go-to-market activities for its two new product lines.
In addition to the domestic market, NOD is simultaneously launching its products overseas, starting with Singapore and Germany.
Wuan Chuang
Proterra Asia recently extended financing to the Chuang family, which owns Taiwan’s oldest premium soy sauce brand, Wuan Chuang.
As part of this financing, Proterra Asia will gain an equity interest in a Chinese soy sauce JV owned by the Chuang family and Yihai-Kerry Arawana, China’s largest edible oils brand.
This JV was formed in 2015 and is already producing and marketing its premium soy sauce products in China. Over the coming years, its ambition is to scale capacity significantly.
China is notably the world’s largest market for soy sauce. Over the next decade, Proterra Asia forecasts that premium soy sauces will gain a significant market share.
