What the HEYTEA Fine Means for the China Coffee Market

HEYTEA's affiliated company, Shanghai Xichuang Yucha Catering Management Co., Ltd., was fined 450,000 yuan by the Shanghai Baoshan District Market Supervision Administration for advertising that did not match reality. The case followed a report filed in June 2021 and concerned bayberry products, including one that sold over 3.5 million cups in 72 days.

Regulators found false claims about ingredient origins and composition, in violation of Article 37 of China's Advertising Law. The penalty trended on Weibo and prompted discussion about advertising practices in the beverage business. For the china coffee market, the case signals closer scrutiny of product claims and a push to protect consumer trust.

HEYTEA's succulent bayberry series has made a high-profile return recently, yet its affiliated company was fined 450,000 yuan by the Shanghai Baoshan District Market Supervision Administration for advertising content that did not match reality. The incident stemmed from a report filed half a year ago; upon investigation, the products involved were found to have false advertising regarding ingredient origins, composition, and promised information. The penalty quickly trended on Weibo, sparking widespread discussion among netizens about the chaos in beverage industry advertising. This article will recount the events and explore the balance between corporate integrity and consumer trust in the new catering era.

Recently, HEYTEA's affiliated company Shanghai Xichuang Yucha Catering Management Co., Ltd. was fined 450,000 yuan by the Shanghai Baoshan District Market Supervision Administration for "using advertising to make false representations about goods or services, deceiving and misleading consumers," in violation of Article 37 of the Advertising Law of the People's Republic of China.

The Weibo topic #HEYTEAFined450KForFalseAdvertising#, hosted by Western Decision, quickly surged to trending status, becoming a focal point of heated discussion among netizens.

Behind this fine lies a six-month in-depth investigation by the Shanghai Baoshan Market Supervision Administration. How exactly did the events unfold?

According to Document No. Hu Shi Jian Bao Chu [2021] 132021001052, on June 2, 2021, the Baoshan Market Supervision Bureau received a report alleging that advertising content for bayberry and other fresh fruit products posted in the Luxiang Road store of Shanghai Xichuang Yucha Catering Management Co., Ltd. was suspected of false advertising. After preliminary verification, the report was largely found to be true.

It is reported that the "products involved" were precisely the succulent bayberry, which set a sales record of over 3.5 million cups in 72 days, and the iceberg bayberry crunch cone, HEYTEA's first fruit sorbet cone—both products using bayberry as the main ingredient. HEYTEA officially introduced that the bayberry varieties had been upgraded across the board to "in-season Dongkui bayberry, bigger and juicier," and "selected Dongkui bayberry from Shiping, Yunnan, and Xianju, Zhejiang, with large fruit, small pits, tightly packed and plump flesh, and rich flavor."

On June 4, 2021, the Baoshan Market Supervision Bureau formally filed a case to investigate its suspected publication of false advertising. Through on-site evidence collection, questioning of key personnel, and gathering of relevant evidence, it was determined that the ingredient origins, composition, and product-related promises published by Shanghai Xichuang Yucha Catering Management Co., Ltd. did not match reality, constituting the publication of false advertising.

After comprehensive consideration, the Baoshan Market Supervision Bureau imposed a moderate penalty on the company, issuing the penalty decision on December 16, with the penalty publication date set as December 7, 2021.

Regarding this trending topic, netizens discussed it with unusual intensity. Some thought the fine was too low: "Only 450,000? Is that looking down on HEYTEA?"

Some held a negative attitude toward the current beverage market, believing that "this isn't the only company like this; basically, if you investigate one, you'll find them guilty."

Some netizens even said bluntly: "450,000 is a joke; it's just someone above going through the motions, it won't serve as a deterrent, and a comeback is inevitable."

According to public information, HEYTEA's succulent bayberry returned in May this year and achieved nearly 120,000 cups on its first day. HEYTEA officially even previewed the return of succulent bayberry in April, sincerely sharing the hardships and difficulties of producing it. One wonders how the true fans of succulent bayberry feel now?

The production processes of new catering are becoming increasingly refined. Evaluating a company's comprehensive strength requires looking at multiple aspects such as supply chain, human resource optimization, and the speed of product innovation and iteration. But in doing catering, one must still stay true to the original aspiration, use genuine ingredients, and consumers can actually see that.

Image source: Weibo

The above content is compiled by CoffeeHunters, a coffee news website.