EQUITY RESEARCH | September 18, 2017 From duck snacks to nuts to fresh milk tea, China’s increasingly wealthy consumers are splurging on innovative food trends, with both start-ups and large established players racing to offer up new products that feed this demand. In this report, we profile the 10 local F&B brands that have risen to the top of the pack and connect the dots between them by identifying the trends they’ve harnessed for success: health awareness, innovative packaging, brand connection and differentiated taste. We also share strategies incumbents can use to defend their share, and highlight three names we see as best-positioned: Yili, Dali Foods and Zhou Hei Ya. Lincoln Kong, CFA Yuqing Li Christine Cho Keiko Yamaguchi Xufa Liao, CFA +852-2978-6603 +65-6654-5328 +852-2978-1255 +81-3-6437-9980 +86-21-2401-8902
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