Yellow Swan (黄天鹅), a leading premium egg brand under Fengji Food Group Co., Ltd. (凤集食品集团), announced on January 26 that it has successfully completed a ¥600 million Series C funding round, marking the largest-ever investment in China’s branded egg industry, according to 36Kr.

Investors and Participants in the Series C Round

• C1 Round: Led by strategic investors, including People’s Daily Capital Fund and Kunyan Capital.
• C2 Round: Led by Fengshang Capital, with participation from Huaying Capital, Yinggang Capital, and existing investors Jianda Emerging Investment and EverYi Capital.
• Taihe Capital served as the exclusive financial advisor for this transaction.

Yellow Swan: A Market Leader in China’s High-End Egg Industry

Fengji Food Group is a fully integrated food enterprise specializing in high-quality egg production and deep-processing.

• According to Frost & Sullivan’s market research, in 2021, Yellow Swan ranked No.1 in national sales within China’s mid-to-high-end egg market.
• Kantar Consumer Index data shows that Yellow Swan’s edible raw eggs have a 70% user penetration rate in China.

Yellow Swan Product Image | Source: Official Website

China’s Egg Industry: A Market Primed for Branding and Innovation

As the world’s largest producer and consumer of eggs, China produces over 31 million tons annually, with an estimated market value of ¥300 billion. However, the industry remains highly fragmented, with low brand awareness—branded eggs account for less than 5% of the market.

In contrast, developed markets such as the U.S., Europe, and Japan have high industry concentration, strong brand presence, and significant deep-processing penetration.

According to The White Paper on Edible Raw Eggs in China, the mid-to-high-end egg market is expanding rapidly. In 2020, 80% of consumers purchased eggs priced at ¥1.5 or more per egg, with edible raw eggs accounting for nearly 50% of this segment. Today’s younger consumers demand safer, tastier, and more nutritious eggs, signaling a structural shift in China’s egg industry.

Yellow Swan’s Competitive Edge: A Fully Integrated Supply Chain

Yellow Swan has built an extensive presence across the entire egg supply chain, thanks to the leadership of Founder & CEO Feng Bin, who has over 20 years of experience in the egg industry.

The company controls every step of production, from:
✅ Breeding and hatchery operations
✅ Feed formulation and R&D
✅ Production and processing
✅ Brand building and omnichannel distribution

Additionally, Yellow Swan has established China’s first edible raw egg safety standards, setting a new benchmark for the industry.

Expanding Market Presence & Retail Channels

Yellow Swan has successfully expanded into over 10 major cities, including Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu, Hangzhou, and Nanjing.

The brand is now a top-selling egg product across multiple retail platforms, including:

• Hema (Freshippo)
• JD.com, Tmall, and Dingdong Maicai
• Premium supermarkets, KA retailers, and community grocery stores

Investors’ Perspectives on Yellow Swan’s Growth Potential

🔹 Du Zonglin, Partner at Fengshang Capital (C2 Round Lead Investor):

“China’s agricultural sector faces challenges similar to those of the semiconductor industry. Eggs are a key source of protein in every household, yet the industry has lacked product innovation, branding, and efficiency improvements for decades. Yellow Swan’s edible raw egg standards are reshaping China’s egg market, leading a critical industry upgrade.”

🔹 People’s Daily Capital Fund:

“Yellow Swan has established a new industry benchmark, integrating full-chain operations and omnichannel sales. This sets the foundation for the long-term premiumization of China’s egg industry.”

🔹 Yu Ting, Managing Partner at Kunyan Capital:

“Yellow Swan has built an industry-leading supply chain model, leveraging technology and branding to transform modern agriculture.”

🔹 Wang Weiwei, Managing Partner at Huaying Capital:

“Yellow Swan’s deep category expertise, combined with its execution capabilities, gives it the potential to become a leading national food brand.”

🔹 Liu Zidi, Founding Partner at Yinggang Capital:

“A strong brand starts with an outstanding product. Yellow Swan has built a best-in-class scientific, fully integrated, and highly controlled egg production system, setting the stage for industry leadership.”

🔹 Wang Yuliang, Deputy General Manager at Jianda Emerging Investment:

“Fengji Food Group operates across brand development, egg production, and deep processing, creating a vertically integrated model. The Yellow Swan team consistently outperforms expectations, and we look forward to their continued leadership in China’s egg industry.”

🔹 Leo Fang, Founding Partner at EverYi Capital:

“As a firm specializing in consumer and brand investments, we deeply appreciate Yellow Swan’s unwavering dedication over the past 20 years. Their full-spectrum supply chain capabilities are unmatched, and we will continue to support their growth.”

🔹 Jiang Kaiyang, Director at Taihe Capital:

“Essential consumer goods have a natural ability to withstand economic cycles. With online traffic growth slowing, categories like premium fresh foods are growing rapidly through new retail channels. Yellow Swan has successfully built a category-defining brand with a complete supply chain and omnichannel sales strategy. Their ability to exceed fundraising expectations demonstrates the strength of their business.”

Future Outlook: Deep Processing and Category Expansion

In developed markets like the U.S., Europe, and Japan, 30-50% of egg products are processed into value-added food items. In contrast, China’s egg processing rate remains below 5%, presenting a major growth opportunity.

Building on its leadership in premium eggs, Yellow Swan has begun expanding into deep-processed egg products.

• In 2021, the company launched China’s first additive-free egg tart, branded as “Master’s Petit Pastry” (大师小点).
• This marks the beginning of Yellow Swan’s expansion into high-value, processed egg products, further strengthening its competitive edge.

Conclusion

Yellow Swan’s record-breaking Series C funding highlights a growing shift toward premium, branded eggs in China. With a fully integrated supply chain, strong brand positioning, and deep market penetration, the company is well-positioned to lead the industry’s transformation.

As China’s egg industry moves toward higher quality, safety, and branding, Yellow Swan is emerging as a category-defining leader, reshaping consumer expectations and industry standards. 🚀

Original: https://mp.weixin.qq.com/s/lpHEiGScRvZXAht6TfDkMg?poc_token=HLpkoGejxoZQas3bYhonFZ9s-c4NlOOQARNBuxT1 (translated by ChatGPT)

By Yang Yafei | 36Kr Pro | January 26, 2022