How the Coffee Bean Process Chain Reaches the Stock Market
Behind the co-branded drinks and price wars of Heytea, Nayuki, Starbucks and Luckin, ingredient and packaging suppliers are quietly going public. Jiahe Foods, Sanyuan Biology, Tianye Shares, Hengxin Life and Dexin Foods have all started IPO processes, supplying non-dairy creamer, sugar substitutes, juice concentrates, flavored syrup, paper cups and plastic cups.
The coffee production process downstream depends on these inputs. Jiahe Foods, founded in 2001, supplies Uni-President, Xiangpiaopiao, CoCo and Mixue Bingcheng. Sanyuan Biology has made erythritol since 2007, naming Genki Forest as its top client and also supplying Heytea. Juice and packaging suppliers profited from the same boom, so the upstream layer grows while terminal brands absorb the competition.
While Heytea, Nayuki, Starbucks, and Luckin are battling it out on the front lines with co-branded collaborations, new product launches, and price wars, few have noticed that a group of suppliers behind them is quietly rising. From Jiahe Foods to Sanyuan Biology, from Tianye Shares to Hengxin Life and Dexin Foods, more and more raw material and packaging companies behind new-style beverages are starting to sprint toward the capital market. Some of these companies provide non-dairy creamer and sugar substitutes, some supply fruit juice concentrates and flavored syrups, and others specialize in producing paper cups and plastic cups. While terminal brands fight in a red ocean, upstream suppliers have seized the momentum to grow bigger, raking in profits, and collectively embarking on the path to going public.
As ordinary consumers, we have long been accustomed to the lively scenes of coffee and milk tea brands constantly "bickering" with each other—co-branded collaborations, constant innovation, discount promotions, and an endless stream of news, which also adds plenty of conversation topics to daily life. Names like Heytea, Nayuki, Starbucks, and Luckin are almost universally known, yet the suppliers behind them are often overlooked by the public.
Since last year, multiple suppliers serving the new-style tea beverage and coffee sectors have successively launched their IPO processes, including Hengxin Life, Tianye Shares, Jiahe Foods, Baoli Foods, and Sanyuan Biology, all queuing up to land in the capital market.
Jiahe Foods was founded in 2001 and is one of the earliest listed consumer suppliers. Its major clients include well-known beverage companies like Uni-President and Xiangpiaopiao, as well as new-style tea brands such as CoCo都可, Shanghai Auntie, Guming, and Mixue Bingcheng.
Following closely is Sanyuan Biology. To ordinary consumers, this name may be relatively unfamiliar, but the company has focused on the industrial production of erythritol since 2007. Erythritol is a type of sugar substitute, mainly used as a bulking sweetener in food and beverages. According to Sanyuan Biology's prospectus, Genki Forest is its number one client, and it also supplies erythritol to the leading new tea brand Heytea.
In addition to sugar substitute companies, fruit juice raw material suppliers have also profited greatly from the explosive growth of new-style tea beverages.
Tianye Shares was founded in 2007, with a product line covering raw fruit juices, quick-frozen fruit pieces, and fresh fruits. The company was listed on the New Third Board in 2015, but at that time the wave of new consumption had not yet fully surged. By 2020, more and more new-style tea brands appeared on Tianye Shares' client list, with Nayuki even becoming its second-largest client. In 2021, just four brands—Nayuki, Chabaidao, Yidiandian, and Shanghai Auntie—contributed 56.49% of Tianye Shares' operating revenue.
In May of this year, Hengxin Life submitted its prospectus, applying for listing on the ChiNext board, planning to raise 828 million yuan. Many consumers may be unfamiliar with this company, but brands familiar to everyone—Luckin Coffee, Staples, Amazon, Heytea, Starbucks, Yihetang, McDonald's, Dicos, Mixue Bingcheng, Manner Coffee, Burger King, CoCo都可 Tea, Guming, DQ—all use paper and plastic dining utensils provided by Hengxin Life. In 2021 alone, Hengxin Life's revenue reached 719 million yuan, selling as many as 2.1 billion paper cups and plastic cups.
On July 6, Dexin Foods disclosed its prospectus, planning to list on the main board of the Shenzhen Stock Exchange. Dexin Foods' main products include beverage concentrates and flavored syrups, and it is one of the raw material suppliers for coffee and tea brands such as Luckin Coffee, Starbucks, and Nayuki.
The rapid expansion of the new-style tea beverage industry has strongly driven the growth of upstream suppliers. With soaring performance, these companies are accelerating toward the capital market. Nayuki is still clamoring to break even, Heytea is hovering at the threshold of going public, and new consumer brands face fierce red ocean competition in the terminal market, while the suppliers behind them have already raked in substantial profits and embarked on the path of collective listing.
Image source: Internet
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The above content is compiled by CoffeeHunters, a coffee news website.
