Sichuan Zhiqiang sells specialized beverage products under the brand name Joysun. The Company is best known as the “King of Walnuts” for its powdered walnut beverages, which are seen as an important healthy part of the Chinese diet due to their high DHA content, and therefore the belief that they make you and your children smarter. Lunar Capital has seconded in one of its operating partners as CEO to launch new products and increase the Company's market share by leveraging its well-known brand.

News & Commentary

News

The Case for Buyout Private Equity in China

For the past 35 years, Chinese private businesses have been growing at full tilt, and now account for more than 75% of total gross industrial output. Many of these private companies originated from OEM manufacturing, and thrived in the export-driven economy of yesterday. Cheap labor, low entry costs, and a supportive currency allowed homogeneous competition to grow without check, and the pace of growth often raised environmental, social and governance issues, such as pollution and product quality...

Read more 2015-06-29 | Lunar Capital
News

Chinese Consumer Story Remains Strong

Analysts and party leaders are calling for a need to rebalance China’s development toward a consumption-driven economy, and move away from investment-led growth, which has slowed. Despite the gradual increase in number of China skeptics, we are confident that China remains the fastest growing consumer market in the world. A recent McKinsey report argues that consumption in China has grown faster than almost any other country on an absolute basis, growing from approximately $0.9 billion in 20...

Read more 2015-05-28 | Lunar Capital
News

Lunar Capital Update: Achievements in 2014

Our achievements in 2014 continue to serve as a validation of our thesis, strategy and commitment to consumer-focused, operationally-intensive, control-oriented investments in China. Our most recent fund, Lunar Capital Partners-III, is now fully invested with strong prospects for further valuation gains and distributions. Our apparel investment, Yeehoo, ended 2014 with revenue and earnings up significantly, positive margin improvement and e-commerce growth driven by channel expansion, product...

Read more 2015-01-29 | Lunar Capital
News

Joysun Signs “Champion·Family Life" Proposal

 “Champion·Family Life"  is China's first reality TV Show about the family life of Olympic champions. The show will be broadcasted on 50 local TV channels, including CCTV and Beijing TV. In total, there will be 52 episodes, released every Saturday night in 2015.   On January 12, 2015, the launching ceremony of "Champion · Family Life"  was held in Beijing. During the event, "Champion·Family Life" program launched the proposal "the Brand is Full of Champions Spirit". The proposal aims to spread...

Read more 2015-01-11 | Sina
News

Consumer Trends in China’s Beverage Industry and Opportunities to Invest

Recently we wrote about our industry-insider approach to sourcing, which we believe provides a unique and growing pipeline of consumer opportunities by narrowing our focus on subsectors where we see strong brands, low penetration buyout rates and healthy margins. Within these subsectors we map out leading companies and approach businesses that score well on key success factors that we have determined from our operational insight. In China’s beverage industry, health-functional drinks are an attractive...

Read more 2014-08-29 | Lunar Capital
News

Sourcing Chinese Consumer Transactions

Our investment management process begins with our unique approach to sourcing transactions in our focus industries. The key component to our sourcing methodology is an industry insider approach: our management expertise and operational involvement in fast moving consumer goods (FMCG), apparel, accessories, specialty-retailing and related sectors provides us with the ability to identify and capitalize on  opportunities sourced from multiple channels. We focus on Chinese consumer businesses, and...

Read more 2014-07-27 | Lunar Capital
News

Delivering Value Creation

Much of the discussion of our operational involvement in our portfolio revolves around growing top line revenues, controlling costs and streamlining decision making. These are goals that we must drive through deeper, more granular involvement in our companies.  This month we highlight some of the areas for improvement within our businesses that have been particularly low hanging fruits.Product R&D We see improvements through research and development and distribution channel...

Read more 2014-06-29 | Lunar Capital
News

A Solution to Stress and Succession

Stressed out sextuginarian and septuginarian entrepreneurs are saddled with succession issues, as are their quadregenriarian and quinquagenerian brethren. A 2013 survey of privately-held small- and medium-sized private enterprises conducted by Shanghai Jiaotong University found that 70% will face succession issues within the next five to ten years, and less than 20% of next-generation heirs and heiresses are willing to take on the responsibility for running their companies. Stress is compounded...

Read more 2014-03-19 | Lunar Capital
News

Investment Snapshot: China’s Dairy Industry

Given the increase in food safety awareness, China’s dairy sector has attracted renewed interest as the reality takes hold that scandals will push consumers toward buying products from larger, branded players. In seeking out attractive consumer businesses, we have looked at a number of dairy companies. Many have had challenging histories. Consumer spending patterns for milk products have historically favored cheap products, making it uneconomical to implement the necessary quality control process...

Read more 2013-02-14 | Lunar Capital
News

Lunar Capital revives King of Walnuts

Shanghai-based private equity fund Lunar Capital Management has acquired a majority stake in Sichuan Zhiqiang Group, the once-prominent walnut producer that later emerged from bankruptcy. Lunar Capital paid US$50 million, including the buyout fee and capital injection, and the firm will be renamed Sichuan Zhiqiang Food. Derek Sulger, a partner at Lunar Capital, said it took 18 months to seal the deal, from initial market research, due diligence to signing the papers. Sulger said he and his...

Read more 2012-03-20 | SCMP
News

Lunar Capital gets 60% stake in Chinese beverage brand

By Alvina Yuen Lunar Capital Management has acquired a majority interest in Sichuan Zhiqiang Group, an integrated food manufacturer located in western China, in a deal worth up to $50 million. Through the purchase of a 60% stake in the 15-year-old Sichuan-based beverage brand, Lunar Capital has formed a new Chinese-foreign joint venture corporation to hold the company's business and assets, hiring Simon Liu, ex-head of Vitasoy China, as CEO, and adding Derek Sulger, founding partner of Lunar...

Read more 2012-03-20 | AVCJ