Core Viewpoint - The rumors regarding the sale of Dayao Beverage appear to be confirmed, with KKR set to acquire a stake in Yuanjing International, which is linked to Dayao Beverage [1][2]. Group 1: Acquisition Details - KKR is acquiring 85% of Yuanjing International through a newly established special purpose company, Dynamo Asia Holdings II Private Limited [3]. - Yuanjing International, established in the Cayman Islands in 2024, primarily operates in the beverage sector within China [3]. - The ultimate controller of Yuanjing International is a natural person, with the name "WANG, QINGDONG," closely resembling that of Dayao Beverage's chairman, Wang Qingdong [3]. Group 2: Market Position - Yuanjing International holds a market share of 5% to 10% in the carbonated beverage market in China as of 2024 [3]. - In the carbonated beverage market, Coca-Cola leads with a 60.28% share, followed by Pepsi at 29.37%, while Dayao ranks third with a 2.42% market share [3]. - Dayao's market share has shown a gradual increase from 2.28% in 2023 to 2.64% in the first half of 2024 [5]. Group 3: Industry Context - The carbonated beverage market is experiencing a contraction, as indicated by Nielsen IQ data showing a decline in offline market sales [4]. - Coca-Cola's two major bottling partners in China have also reported a decrease in product sales in 2024 [4]. - Despite the market challenges, Dayao's increasing market share suggests potential value in the brand [5].

Group 1 - The yogurt market is experiencing a contraction, with a projected decline of 10.68% in market size for 2024 according to Euromonitor data [2] - Major players like Yili and New Hope are still achieving growth in this shrinking market, with Yili's low-temperature yogurt business significantly increasing its market share by 1.3 percentage points [2][4] - Junlebao's "Jianchun" brand leads the low-temperature yogurt market, holding the top market share in both zero-sugar and low-temperature yogurt categories [2][3] Group 2 - The yogurt market is facing intensified price competition, with mainstream prices dropping from 8-10 yuan to around 5 yuan over the past five years [3] - There is a clear polarization in the yogurt market, where low-end products are struggling to sell despite price cuts, while distinctive mid-to-high-end products are seeing relative growth [3] - Companies are increasingly focusing on innovation and new product launches to drive growth in a challenging market environment [3]