The trend of new tea drinks continues, and suppliers are riding the wind

With the arrival of midsummer and the market entering the peak tea season, major tea brands have launched new products one after another, attracting many young people

Play cross-border IP

The trend of new tea drinking continues

According to the data from Tianyancha, there are currently about 377,000 tea-related enterprises in China whose name or business scope contains "milk tea and tea" and the status is "in business, existing, moving in and moving out"

In 2010, a new "branch road" appeared in China's tea consumption market - new-style tea

Different from traditional tea and bottled tea, new products emerge with the advantages of fashionable appearance and catering to the preferences of young consumers

With the change of the times and the change of consumption concept, the industrial innovation and iterative update of the consumer market have been continuously promoted, and the market scale is gradually expanding

According to public data, in 2021, the scale of China's new tea beverage market will be about 97.

The "2021 New Tea Drinks Research Report" proposes that in the next 2-3 years, the growth rate of new tea drinks will gradually slow down and be adjusted to 10%-15%

Regarding the reasons behind the slowdown in growth, the China Chain Store & Franchise Association stated that from the perspective of enterprises, in the face of intensified competition, higher rents, limited talent pools, food safety management needs to be further strengthened, and takeaways account for a high proportion of low profits and other factors.

However, the slowdown in growth rate is phased, and moderate adjustments will achieve accumulation

Food safety is the lifeblood of catering companies.

According to data from the State Administration for Market Regulation, in 2021, market supervision departments across the country will accept a total of 9.

However, under the influence of various factors such as the epidemic, food safety, and the same category, the competition in the new tea drinking track has never stopped

　　In addition, brands also promote their own development through IP co-branding

　　In this regard, Zhu Danpeng, an analyst of China's food industry, said that the IP co-branding under the promotion of tea culture involves the innovation of products and formulas, which reflects the innovation and upgrading of the brand

　　However, similar to other tracks, many old and new brands choose to cross the border and invest in new tea drinks.

　　In this regard, Suo Shan, director of RET Ruiyide, believes that innovation must be a must for these brands.

　　In the face of the hot new tea drinking track, the capital market has also been infected
.

　　According to data from Tianyancha, there are more than 100 brands in China's new tea drinking track that have generated more than 200 financing events
.
In January this year, Changsha’s local brand “Ningji” completed a series A+ financing of several hundred million yuan.
In July last year, the brand also announced the completion of a series A financing of tens of millions of yuan from ByteDance
.

　　Not only is the capital market moving frequently, but the development of new tea drinks has also changed the development process of suppliers
.

New tea drink brings fire to another track

IPO of some brand suppliers

　　On June 15, Tianye shares, which had been listed on the New Third Board for 7 years, formally submitted a declaration to the Beijing Stock Exchange and planned to be listed again
.

　　According to the prospectus, from 2019 to 2021, Tianye shares achieved operating income of 290 million yuan, 266 million yuan, and 459 million yuan; net profit of 24.
3209 million yuan, 21.
0017 million yuan, and 65.
1776 million yuan
.
According to calculations, Tianye's net profit in 2021 will increase by 210.
34%
.

　　It is worth noting that in Tianye's 2021 annual report, Nai Xue's tea revenue accounted for 20.
04% of its total revenue
.
However, just in 2019, the top five customers of Tianye shares were Guangdong Nanfenghang Agricultural Investment Co.
, Ltd.
, Nongfu Spring, Fresh Juice, Coca-Cola and Coco Milk Tea
.

　　In 2021, in addition to Nongfu Spring, the remaining top four customers are all new tea brands, namely Nai Xue's Tea, Tea Baidao, Yidian and Shanghai Auntie, accounting for more than half of the revenue
.

　　However, the relationship between Tianye shares and customers is not just a simple supply and demand relationship
.
At the end of 2021, Nai Xue's Tea subscribed for 12 million shares for 38.
64 million yuan, while Auntie Shanghai subscribed for 1 million shares for 3.
22 million yuan
.
This action undoubtedly strengthens the relationship between the brand and the supplier's equity
.

　　It is also in the terms of this private placement that Tianye shares promise to complete the qualified listing on the Shanghai Stock Exchange or Shenzhen Stock Exchange before December 31, 2024.
If the listing is not completed within the specified time, it needs to repurchase the privately issued shares
.

　　In addition, the 475 million yuan raised by Tianye's listing plan will be mainly used for the construction project of Hainan Free Trade Port Smart Factory (Phase I) and the expansion project of tropical characteristic industries in Dachuan, Hainan
.
As for the further expansion of production capacity, some industry experts believe that this is the strengthening of the competitive advantage for Tianye, and the optimization of the supply chain behind it for the new tea brand
.

　　Before this, many new tea suppliers have embarked on the road of IPO
.

　　At the beginning of this year, Baoli Foods, which provides "small ingredients" for Heytea, Starbucks, McDonald's, etc.
, plans to be listed on the Shanghai Stock Exchange
.
In this listing, Baoli Foods plans to raise 460 million yuan for the company's Jiaxing production base (Phase II) construction project and information center construction project
.

　　In May of this year, "Hengxin Life", a packaging material supplier of Heytea and Ruixing, also disclosed its prospectus for listing on the Growth Enterprise Market
.
It is reported that the company plans to raise 828 million yuan, which will be used for the annual production of 30,000 tons of PLA compostable green biological products, intelligent upgrading and transformation projects, research and development technology center projects and supplementary working capital
.

　　It is understood that in 2020, Hengxin Life cooperated with Ruixing Coffee, and Ruixing contributed sales of 26.
5039 million yuan to it in that year.
In 2021, the sales contributed by Ruixing will quadruple to 83.
193 million yuan
.
In addition, Starbucks, McDonald's, etc.
are also the main customers of Hengxin Life
.

　　Lai Yang, Dean of Beijing Jingshang Circulation Strategy Research Institute, said that these suppliers selected by brands will gradually improve the standards of quality control, management, and operation level, and at the same time, they will also drive the improvement of the level of the entire industry
.

　　However, most of these providers have the same drawbacks
.
Lai Yang believes that suppliers are limited by the new tea market and the status of major customers.
If the market and customers are severely impacted, the suppliers will also be greatly affected, and their ability to respond to challenges in the consumer market is poor
.
Choosing a single or less investment brand is equivalent to risk concentration, so a strong enterprise must be diversified
.
The selection of partners also requires strategic evaluation of suppliers, and reducing their own operational risks must be the primary consideration
.

　　Regarding the trend of the new tea market in the future, Zhu Danpeng believes that the future new tea brands will inevitably develop in the direction of standardization, specialization, branding, capitalization and scale, and there will be a trend of "the strong are stronger and the weak are weaker".

.

　　Lai Yang also believes that in the future, due to the changes in consumption habits of a generation, the market share of new tea drinks will become larger and larger.
Under this trend, the new tea drink market is still in rapid development, rapid update, and unstable elimination.
stages of the business
.
Only in the principle of "survival of the fittest" can a healthy and stable development of tea companies survive
.

　　(Source: Dagong FMCG)

　　"China Food News" (July 25, 2022 Edition 07)

　　(Editor-in-charge: Luo Chen)