How does the milk to coffee ratio relate to Juewei tea beverage market entry?

Juewei Food, known for braised duck necks, has started selling milk tea in some stores, with banners advertising three cups for 11.9 yuan and mini-program drinks including red bean pudding and coconut burst green milk tea at 7 yuan per 473ml cup. A Changsha store reported selling tea for over a month with decent sales, and four or five area stores now offer it.

The cross-border move comes as braised food demand weakens, revenue declines, the stock price drops, and the chain closes nearly a thousand net stores, while consumers complain about price and quality. Analysts see the tea drinks as a bid for younger customers, though drink formulation details such as the milk to coffee ratio in milk coffee remain a separate question from milk tea itself.

When "the braised food king" Juewei Food quietly started selling milk tea in some stores, an unexpected cross-border experiment unfolded. For young people, milk tea is a daily necessity, but duck necks are not a daily must-choose. Against the backdrop of weak consumption in braised food, is Juewei's move a bold innovation to seek new growth points, or a risky venture with unpredictable prospects? From promotional banners offering 3 cups for 11.9 yuan to red bean pudding and coconut burst green milk tea at 7 yuan per cup on the mini-program, Juewei is trying to attract young customers with tea drinks. However, declining revenue, a sharp drop in stock price, a net decrease of nearly a thousand stores, and consumer complaints about price and quality all make this cross-border move full of suspense. This article will analyze the business logic and challenges behind Juewei's milk tea sales from multiple perspectives, including store visits, market data, and expert opinions.

For today's young consumers, milk tea has almost become a daily necessity, while duck necks are far from reaching such high frequency—ordering a cup of milk tea during afternoon tea is very common, but few people gnaw on duck necks every day. At a time when the overall braised food market is sluggish, "the braised food king" Juewei Food has surprisingly also started a milk tea business.

Recently, discussions on social media about Juewei Food selling milk tea have continued to heat up, and the topic #JueweiStartsSellingMilkTea# even rushed onto the hot search list, attracting a great deal of attention.

From photos shared by netizens, some Juewei Duck Neck stores have eye-catching banners hanging at their entrances, printed with the promotional slogan "11.9 yuan for 3 cups of original leaf milk tea vouchers."

According to a Red Star News reporter's visit, a staff member at a Juewei Duck Neck store in Changsha revealed that the store has been selling milk tea for over a month, and sales are currently decent.

It is reported that about four or five Juewei Duck Neck stores in the Changsha area are currently selling milk tea, and two tea drink products have also been launched on the Juewei mini-program: red bean pudding and coconut burst green milk tea, both in 473ml standard cups, uniformly priced at 7 yuan.

Juewei Food's cross-border move not only surprised many duck neck fans but also drew attention from the entire braised products industry. Is the combination of "duck neck + milk tea" a bold breakthrough by the braised food leader, or a cross-border gamble with unpredictable prospects?

The quiet launch of the tea drink business makes Juewei's cross-border move eye-catching, and at the same time, some market analysts pointed out that this is an attempt by Juewei to tap new growth points for the brand.

Chain operation expert Li Weihua believes that Juewei has over ten thousand stores and a huge consumer group, and these resources create a natural advantage for introducing milk tea products.

As is well known, Juewei Food's operating conditions in recent years have not been ideal, especially in the first quarter of this year, when Juewei Food's revenue was 33.40 yuan, down 9.73% year-on-year. Regarding the sharp decline in revenue, Juewei Food explained that it was mainly due to reduced sales volume.

Reflected in the capital market, as the braised food king, Juewei Food's stock price has also been declining all the way. Over the past year, its stock price fell from around 35 yuan per share to around 12 yuan per share at present, hitting a historic low. Its total market value has fallen out of the 10-billion-yuan club, leaving only 7.5 billion yuan, with nearly 90% of market value evaporated.

In terms of stores, according to the 2024 semi-annual report, as of the end of the reporting period, Juewei had a total of 14,969 stores in mainland China. In the first half of this year, the number of stores decreased by a net 981, a closure scale exceeding the combined net store closures of competitors Zhou Hei Ya and Huang Shang Huang.

Juewei's revenue decline and store closure wave actually showed signs earlier. In discussions about "why are fewer and fewer people patronizing Juewei Duck Neck," netizens have started complaining one after another.

What dissatisfies young people most is that duck necks are getting more and more expensive. It is understood that in early 2022, Juewei Duck Neck raised prices on some products by 5%, and in the middle of the year it also raised prices on products such as duck webs by 7% to 10%. Netizens exclaimed they could not afford it: "Just weighing a random amount costs 50 yuan," "I bought 15 yuan of duck necks and counted only eight and a half pieces when I got back," "It's sold for more than beef." The label of "duck neck assassin" has made consumers hesitant to enter Juewei stores.

"Juewei is getting less and less tasty; I haven't bought it in a long time." "Ever since the Juewei staff started asking for three pieces and taking eight three years ago, I turned from a fan to a hater and never buy from them again." "Their store always forcibly mixes fresh and extremely unfresh items together; the number of times I get fresh ones is especially low, and some even have an odor"—product quality and service management have also become another major factor in people's dissatisfaction.

Regarding Juewei's innovative move of selling milk tea, analysts generally hold a cautious attitude. Although Juewei Food has many stores, many stores have limited space, making it difficult to add tea bar counters and other milk tea production equipment. In addition, compared with professional milk tea brands, Juewei Food is still at a disadvantage in terms of tea drink supply chains and product categories.

Image source: Internet

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