KKR set to acquire 85% stake in Chinese beverage firm Dayao 

CHINA – Global private equity firm KKR is nearing a deal to acquire an 85% controlling stake in Chinese beverage producer Dayao, according to sources cited by Bloomberg.  

The transaction remains subject to regulatory approval in China and has not yet been finalised. 

Under the proposed agreement, Dayao’s founding team will retain a minority interest, while KKR takes majority ownership. The move underscores rising private equity interest in Asia’s consumer market, especially in fast-scaling regional brands with export capabilities. 

Headquartered in Inner Mongolia, Dayao has developed a diverse beverage portfolio that includes carbonated drinks, fruit juices, and protein-enriched beverages. The company exports to Southeast Asia and Russia and has built a strong domestic distribution network in China. 

Dayao operates with more than 1,000 distributors and maintains a presence in over one million retail locations across all 31 of China’s provinces, autonomous regions, and municipalities.  

A key turning point came in 2014, when the company began targeting foodservice channels—a segment that had been largely overlooked by traditional cola brands in the country. 

Earlier this year, Dayao was reportedly exploring a Hong Kong IPO to raise as much as $500 million. The current shift to a strategic buyout aligns with broader investment trends favouring high-growth consumer goods firms across Asia. 

KKR has a long-established global presence and a reputation for disciplined investment. In the first quarter of 2025, the firm raised US$30.54 billion in new capital, increasing total assets under management to US$664 billion, up 15% year-on-year. 

Co-CEO Scott Nuttall noted during the Q1 earnings call that periods of market disruption often present prime investment opportunities for the firm. 

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.