Nongfu Spring

Nearly expired bottles of Nongfu Spring’s “Scream” energy drink are being sold at surprisingly high prices (up to $12 USD) on Chinese secondhand online marketplaces. This price surge for a soon-to-expire product, despite its reputation as one of China’s “worst-tasting” beverages, sparks questions about market dynamics and consumer behavior. The red variant of “Scream” aims to replenish electrolytes lost during exercise, a function crucial for athletic performance and mitigating dehydration.

Nongfu Spring Chairman Zhong Shanshan addressed outsourcing speculations at the company’s 2024 shareholders meeting, asserting its fully integrated production model excludes third-party manufacturing. He emphasized proprietary control from water sourcing to labeling, supported by 14 protected reserves and 30 facilities enabling localized supply chains within 500 km of markets. Analysts highlight this vertically integrated strategy as a competitive differentiator despite higher costs, aligning with Nongfu’s 21% market dominance in China’s $15B bottled water sector. Zhong’s remarks reflect broader industry debates about balancing scalability with quality assurance amid rival partnerships like Wahaha-Jinmailang.