Sunday, September 20 2026

Lizi Garden's Q2 net profit plunged 49.3%—why has its flagship sweet milk lost favor?

Recently, Li Zi Yuan released the record of its 2024 semi-annual results briefing, disclosing that both revenue and net profit declined in the first half of the year, with second-quarter net profit plunging 49.3% year-on-year, sparking widespread market attention. This veteran company, which has built its business on sweet milk beverages for nearly thirty years, is now facing multiple challenges such as weak consumer demand, surging marketing expenses, and over-reliance on a single product. Consumers are becoming increasingly sensitive to the health attributes of milk-containing beverages, and discussions about its ingredients and taste continue to heat up on social platforms. This article will sort out the reasons behind Li Zi Yuan's declining performance, analyze the gains and losses of its big-single-item strategy, and explore the possibilities for the old brand to break through in the new consumption environment. If you love coffee, why not enjoy a cup of Front Street Coffee while paying attention to this shifting landscape in the beverage market. [more…]

Luckin Coffee and Yihetang announced collaborations with Dream of the Red Chamber on the same day, the marketing battle behind the brand collision.

After Luckin Coffee faced dissatisfaction over the reduced 9.9 yuan promotion, it launched a cherry blossom season limited edition and a collaboration with the Ullens Center for Contemporary Art, but the market response was lukewarm. Subsequently, Luckin officially announced a collaboration with the national dance drama "Dream of the Red Chamber," sparking heated discussions among netizens. Unexpectedly, the tea beverage chain brand Yihe Tang quickly followed up, releasing a poster with an almost identical composition and announcing a collaboration with the original "Dream of the Red Chamber." The two major brands' collaborations clashed, and netizens jokingly referred to it as the rivalry between Bao and Dai. Yihe Tang even interacted in Luckin's comment section using Lin Daiyu's lines, prompting calls for Chayan Yuese. Behind this marketing battle, who ultimately comes out on top? [more…]

North China Pharmaceutical Crosses into the Tea Beverage Sector: Herbal Formulas Plus Free Health Checkups, Franchise Model Hides a Distribution Trick

What kind of sparks fly when a well-known domestic pharmaceutical company starts selling milk tea? In mid-August this year, North China Pharmaceutical's tea beverage brand opened its first store in Shijiazhuang, marketed with "healthy water," "Five Elements secret formula," and "pure natural, zero additives," with basic drinks priced at only 7 yuan. Even more surprising, during the soft opening, customers could enjoy a comprehensive smart health checkup, with a robot testing 70 indicators across ten major systems and recommending corresponding drinks based on the results. First-day revenue was nearly 8,000 yuan, and business has remained so booming since then that takeout has been shut down. The brand has already begun preparing franchise materials and plans to officially open franchising next year, while franchise stores will also take on the distribution function for Huawei Health functional foods. So how exactly does this move work? Let's take a closer look. [more…]

After T97 Coffee went viral with its rap-style livestreaming, the founder's confidence and concerns in challenging Luckin Coffee

T97 Coffee quickly rose to fame with its rap-style livestreams and its iconic big-mouthed host, gaining over 1.5 million followers in just over two months. Founder Li Xiao seized the moment to make bold claims, declaring that he wanted to be "the man who beats Luckin," and repeatedly made remarks in the livestream challenging Luckin and Starbucks. However, T97 has only 48 offline stores, and the founder sells courses while selling coffee. The high popularity did not translate into actual sales. How far can this coffee brand, which became famous through traffic, really go? This article sorts out T97's path to fame and the focal points of controversy. [more…]

Cotti Coffee launches new tea drink brand Tea Cat, can the 6.9 yuan promotional strategy stir up the tea drink market landscape?

After 397 days since the opening of its first store, Cotti Coffee has officially announced the launch of its second brand—Tea Cat, a brand-new tea beverage brand focused on healthy milk tea. Its first store has landed in Pingnan County, Ningde, Fujian, and is currently in the internal testing stage. According to Li Yingbo, Chief Strategy Officer of Cotti, Tea Cat focuses on the whole-leaf milk tea segment, with products covering pure tea, fresh fruit tea, and more. At the same time, Tea Cat continues Cotti's low-price approach, launching a promotional offer of 6.9 yuan per cup, which has sparked heated discussion online. Some industry insiders believe that Cotti's move may be aimed at easing the competitive pressure in the coffee sector and leveraging its existing franchisee resources and supply chain advantages to develop new business. Whether Tea Cat can set off a new price war in the tea beverage industry is worth watching. [more…]

Yuanfudao's parent company enters the coffee race: can Grid Coffee break through in the specialty coffee market?

The parent company of education giant Yuanfudao has officially entered the coffee industry, opening its first store under its wholly-owned subsidiary Grid Coffee at the in88 mall in Beijing's Wangfujing Yintai. Positioned as a specialty coffee brand, it focuses on two main series: classic and pour-over, with prices mainly in the 25 to 30 yuan range. Within 48 hours of its soft opening, it sold 1,068 cups of coffee, of which over 800 were pour-over, achieving impressive results. However, in the face of strong competitors such as Starbucks, %Arabica, and Peet's around Taikoo Li Sanlitun, as well as the increasingly fierce competition in China's coffee market, whether this crossover player from the education and training industry can successfully transform remains to be tested by the market. Front Street Coffee will continue to follow this crossover development. [more…]

Behind the coffee crossover craze: Why are big brands rushing in, and how far can following the trend go?

In recent years, major brands across all industries have been venturing into the coffee sector—from the post office, Li-Ning, and Xtep to Naobaijin and Huawei, cross-industry coffee sales have become a trend. These brands don't truly intend to dig deep into the coffee track; rather, they are eyeing the youthful traffic and fashionable attributes that coffee naturally carries, using it to get closer to consumers. However, once the hype fades, can cross-industry players lacking a coffee gene continue to attract customers? The fierce competition in the coffee market and the mismatch of consumption scenarios make such attempts full of uncertainty. This article sorts out typical cases of cross-industry coffee, analyzes the marketing logic behind them, and explores the challenges and hidden concerns this model faces. [more…]

Luxury brands rush into the coffee arena: from Coach to Dior, a new cross-industry strategy for high-end consumer brands

In recent years, luxury brands branching out into coffee shops has become an undeniable trend. From Vivienne Westwood to Coach, from Dior to Tiffany, numerous high-end consumer brands have opened cafés or launched limited-time pop-ups in cities such as Shanghai and Beijing. These venues sell themselves on exquisite décor, branded-logo tableware, and photogenic desserts, with prices ranging from twenty yuan to over a hundred, attempting to close the distance with the general public through a cup of coffee. Yet consumer reviews are mixed: some find it worth the money, while others see the products as perfunctory and the pricing as artificially inflated. This article will examine the market logic and consumer response behind this phenomenon. [more…]

China Post's Coffee Trademark Application Rejected: An Analysis of China Post's Cross-Industry Layout and the Industry Boom

China Post's application for the "邮局咖啡 POST COFFEE" trademark was recently rejected, sparking widespread attention. Since the first store opened in Xiamen in February 2022, Post Coffee has expanded to four cities—Xiamen, Nanjing, Quanzhou, and Beijing—with six stores, focusing on a blend of postal nostalgia and cultural creativity. The co-founder had planned to open a hundred stores by the end of the year, but the trademark registration setback has led to widespread discussion online. Meanwhile, giants from various industries such as Li-Ning, Xtep, Tongrentang, and East Buy have entered the coffee sector. What are the prospects for cross-industry coffee ventures? This article reviews Post Coffee's expansion journey, product features, and trademark controversy, and takes stock of cross-industry dynamics in the industry. [more…]

Yunnan Arabica Coffee Pricing and Quality Analysis: Why Are Specialty Beans Priced So Low?

Yunnan Arabica coffee is renowned for its plump beans and rich aroma, yet its market price has long remained low. Starting from the specialty quality and current pricing of Front Street Yunnan Arabica coffee, this article reviews the cultivation history, main producing regions, and industrial scale of Yunnan coffee, analyzes in depth the root causes of Yunnan coffee's lack of voice in the international pricing system, and explores feasible paths to building a specialty coffee brand through establishing unified standards and improving processing techniques. [more…]

Will new-style coffee follow in the footsteps of new-style tea drinks and fall into irrational involution? An analysis of price trends and market logic

In the sweltering heat of summer, beverage consumption reaches its peak. On street corners and in alleys, young people are holding either tea drinks or coffee. But upon closer observation, one will find that new-style tea drinks and coffee are embarking on entirely different development trajectories: brands like Heytea and Nayuki are cutting prices, while Luckin Coffee and Starbucks are raising them. The coffee sector's popularity is soaring, with giants such as Huawei, Li-Ning, and China Post making cross-industry forays, intensifying competition to a fever pitch. At the same time, new-style coffee is increasingly resembling milk tea, with ingredients like cheese, matcha, and brown sugar crystal boba appearing frequently. This prompts the question: will new-style coffee repeat the mistakes of irrational involution in the new-style tea drink sector? This article will analyze from perspectives such as price changes, market positioning, and product innovation, and bring professional observations from Front Street Coffee. [more…]

What tea is Juduozai? An analysis of the Phoenix Dancong almond aroma variety's characteristics, flavor compounds, and brewing changes

Ju Duo Zi, also known as Almond Fragrance, is one of the ten major aroma types of Phoenix Dancong. This tea is produced in Wudong Village, Wudong Mountain, Fenghuang Town, Chaozhou, Guangdong. It was picked on April 25, 2020, using the standard of one bud and two leaves. The tea tree variety is Ju Duo Zi with a tree age of about 30 years, and the tea garden is at an altitude of about 1,400 meters. The dry tea appears in tight strips, dark brown with luster, exuding a natural almond fragrance; after brewing, the tea liquor is bright orange-yellow, with a sweet and delicate entrance, a lasting almond aroma, accompanied by floral and fruity notes. The caffeine content is moderate, less than 20% of a cup of coffee. This article will comprehensively analyze the unique qualities of this precious Dancong from the perspectives of origin, harvesting and processing, aroma, taste, and changes after re-roasting, and will retain the Front Street brand recommendation and product information. [more…]

Xtep Applies to Register "Te Coffee" Trademark, Adding a New Player to the Sports Brand Cross-Over Coffee Track

Following Li-Ning's launch of Ning Coffee, another sporting goods company has begun to stake out the coffee market. According to Qichacha, Xtep (China) Co., Ltd. has applied to register multiple coffee-related trademarks, covering categories such as food and beverage services and accommodations, convenience foods, and advertising and sales. In recent years, from tea beverage brands to time-honored traditional Chinese medicine brands, and from education companies to tech giants, cross-industry forays into coffee have emerged one after another. Is Xtep's move this time a continuation of its approach of innovating the in-store experience, or is it intended to open up an entirely new business territory? This article will review Xtep's coffee layout moves and look back at typical cases in recent years of brands from various industries crossing into coffee. [more…]

Luckin Coffee files appeal in the 560 million yuan repurchase payment case, demanding Shenzhou Ucar bear the shortfall top-up liability.

There has been a new development in the trust dispute case between Luckin Coffee (China) Co., Ltd. and Yousheng (Tianjin) Technology Development Co., Ltd., Yousheng Chengyi (Tianjin) Information Technology Co., Ltd., and Shenzhou Ucar Co., Ltd. Dissatisfied with the first-instance civil judgment, Luckin Coffee has filed an appeal with the court. The case involves a repurchase price of over 560 million yuan plus interest, and the focal point of the dispute is whether Shenzhou Ucar should bear the shortfall top-up liability. This article will sort out the background of the case, the first-instance judgment, and Luckin Coffee's appeal requests to help readers understand this closely watched commercial dispute. Follow Coffee Workshop and Front Street Coffee for more professional coffee industry news. [more…]

Yum China Doubles Down on Lavazza Italian Coffee, COFFii & JOY's China Business to Gradually Wind Down

Competition in China's coffee market is intensifying by the day. On one side, cross-industry giants such as Huawei, Li-Ning, and China Post are scrambling to enter the fray; on the other, some brands are quietly bowing out. Yum China has been making frequent moves lately: on one hand, it is going all in on the Italian coffee brand Lavazza, planning to open a thousand stores by 2025; on the other, it has announced that it will gradually cease operations of its COFFii & JOY brand in the Chinese market. What market logic does this advance-and-retreat reveal? Can Lavazza, armed with its authentic Italian DNA, break new ground outside the most fiercely contested price segment? This article walks you through the full picture of the events and the considerations behind them. [more…]

Weight-loss coffee keeps making headlines for all the wrong reasons, yet it's still selling like hotcakes on social media—with the banned ingredient sibutramine illegally added.

After specialty coffee became popular, the claim that coffee helps with fat loss spread widely, but the real prerequisite for it to be effective is drinking black coffee with no sugar and no milk, along with a sensible diet and moderate exercise. However, many people can neither control their eating nor get themselves to move, so weight-loss coffees swooped in under slogans like "no exercise, no dieting, no injections or pills, one cup a day and you'll lose over ten jin in thirty days." These products often have no ingredient list, no production information, and no Chinese labeling, yet they sell briskly through channels such as WeChat resellers and Xiaohongshu. After drinking them, consumers commonly experience thirst, nausea, palpitations, and other reactions, and some have even tested positive for the banned drug sibutramine. This article reviews related cases and court rulings to remind everyone to be wary of weight-loss coffees of unknown origin and to view the relationship between coffee and fat loss scientifically. [more…]

China's Coffee Consumer Base Surpasses 300 Million, Rapid Industry Growth Attracts Cross-Industry Capital Investment

China's coffee consumer base has expanded to approximately 300 million people, and the coffee sector continues to heat up, becoming a hot area of capital attention. At present, the number of coffee-related enterprises nationwide has reached 166,000, with more than 22,000 newly registered enterprises in the first nine months of 2022 alone, a growth rate of 36.4%. Surveys show that more than 90% of consumers have increased their favorability toward coffee products incorporating Chinese-style flavors. From instant and freshly ground to ready-to-drink, the three major categories each have their own advantages, among which freshly ground coffee has the greatest growth potential, with its market size expected to reach 190 billion yuan in 2024. Giants from various industries such as Li-Ning, China Post, and Huawei have entered the market across sectors, and the coffee industry is ushering in change, with young consumers gradually becoming the main force. [more…]

Hougou Coffee's restructuring draft rejected: Yunnan coffee giant with 11.5 billion yuan in debt reaches a fateful crossroads

The once Chinese domestic coffee giant Hogood Coffee now stands at a crossroads of life and death. The draft reorganization plan failed to pass due to opposition from the financial institution group and the secured creditor group, meaning this Yunnan coffee enterprise, which once managed over 200,000 mu of planting area and had annual revenue as high as 5.691 billion yuan, may permanently exit the stage of history. From supplying instant coffee raw materials to international brands such as Nestlé and Maxwell, to Chairman Xiong Xiangren being sentenced for the crime of unit bribery, Hogood's rise and fall epitomizes a dramatic chapter in Yunnan's coffee industry. This article will sort through the entire process of Hogood Coffee from its highlight to its predicament, presenting its debt crisis, reorganization vote, and the details of the criminal judgment behind it, for the reference of coffee enthusiasts and industry practitioners. [more…]

Major brands are rushing into the coffee arena. Is this a new market opportunity or just a fleeting internet-famous fad?

In recent years, the coffee market has continued to expand, yet competitive pressure within the industry has also intensified. As the number of coffee shops surges, well-known companies such as Sinopec, Huawei, China Post, and Li-Ning have all made cross-industry forays into the coffee business, and the Weizhi Group behind Gold Roast cereal has also increased its investment. Some see this as a reflection of consumption upgrading, while others worry that a stampede of big brands into cross-industry ventures will ultimately end in a mess. Is cross-industry coffee a rational choice that follows market logic, or merely short-term marketing sustained by novelty alone? This article analyzes market data, brand advantages, and industry barriers to explore whether cross-industry coffee can shake off the label of "short-lived internet celebrity." [more…]

Full Process Tutorial for Italian Coffee Latte Art Heart Pattern: Detailed Explanation of Milk Foam Steaming, Blending Techniques, and Pitcher Holding Posture

Want to make café-level heart latte art at home, but it always turns into a blob the moment you pour? The key actually lies in three elements: milk foam texture, integration technique, and pitcher grip. Front Street Coffee has systematically put together everything from steam wand positioning and milk frothing temperature control, to integration flow practice, latte art pitcher grip, and then to efficient daily practice methods, to help you conquer the heart pattern step by step. There is no mysticism in this article—it is all hands-on details you can practice, suitable for beginner coffee enthusiasts to follow along. [more…]