(Yicai Global) Feb. 21 -- Dongpeng Beverages intends to increase investment in its coffee product line, online news outlet Jiemian reported, citing the vice president of the Chinese energy drink company after the firm logged a significant slowdown in profit growth last year.

Dongpeng will spend more on marketing its coffee products this year, Liu Lihua said. The beverage retailer started to sell coffee in the first half of 2021, but failed to gain a foothold in the market.

Dongpeng posted a 21 percent jump in net profit in 2022 from the year before, significantly lower than the 40 percent annual growth it achieved in the previous two years, the Guangdong-based company said in its performance forecast released yesterday.

The firm, which gets about 96 percent of its revenue from its version of ‘Red Bull’ called Dongpeng Special Drink, achieved net profit of CNY1.4 billion (USD210 million) last year and revenue exceeded CNY10 billion (USD1.5 billion) for the first time, it said. No reason was given for the slump in profit growth.

“Coffee will serve as our second growth curve,” Liu said. “The company will consider stocking coffee with different flavors. Then, according to market feedback, the sales strategy will be formulated.”

Cash-rich Dongpeng is also exploring going down the investment route. The firm is planning to invest up to CNY2.1 billion (USD305.5 million), equivalent to no more than 50 percent of its net assets in 2021, in Chinese and foreign companies’ securities, it said on Feb. 17.

Editor: Kim Taylor