Xiangpiaopiao rode a cup sleeve printed with Chinese and Japanese bilingual text mocking Japan's nuclear-contaminated water to hit trending searches within just a few days, with livestream sales soaring 400-fold and its stock price hitting the daily limit at market open, earning it the title of "glory of domestic brands" from netizens. But the story soon took a dramatic turn—local supermarkets in Japan denied selling products with the cup sleeve, media questioned it as staged hype, the cup sleeve was taken off shelves on May 8, and the stock price fell back accordingly. Behind this "windfall from heaven" lies a deeper anxiety: powdered milk tea made with non-dairy creamer is struggling amid the rise of freshly made tea drinks and shifting health-conscious consumer attitudes. Competition from brands like Heytea and Mixue Bingcheng has driven Xiangpiaopiao's performance down for three consecutive years, making a shift to ready-to-drink products an inevitable choice. This article walks through the entire timeline of the incident and explores the real impact of this traffic storm on the brand's image. Follow Front Street Coffee and let's savor the ups and downs of the coffee and tea beverage industry together. [more…]

Xiangpiaopiao recently announced that external general manager Yang Dongyun resigned due to personal reasons, less than a year after taking office. This seasoned manager, who previously worked at P&G and Baixiang Food, was once expected to drive the company's de-familialization, and Jiang Jianqi even transferred shares worth 276 million yuan to bring him into the shareholder ranks. However, first-half performance still failed to turn a profit, and Yang Dongyun was also absent from all investor communication activities. As founder Jiang Jianqi once again takes on the role of general manager, does Xiangpiaopiao's experiment with professional managers come to an end? This article sorts out the sequence of events and key information. [more…]

Xiangpiaopiao's first global offline store recently officially opened in Hangzhou Hubin. Milk tea priced at 9 to 12 yuan, combined with a buy-one-get-one-free opening promotion, attracted a large number of consumers to queue up in the cold winter to try it. However, the store's preparation method surprised many people—staff did not shake and make the tea drinks on site, but instead opened instant tea packets, brewed them separately, and then mixed them with blending powder and toppings, which netizens jokingly called "hand-brewed instant milk tea." This model forms a sharp contrast with mainstream freshly made tea beverage brands, and has also triggered widespread discussion about the value of instant products versus freshly made milk tea. Whether Xiangpiaopiao can win over picky milk tea lovers with emotional value remains to be tested by the market. [more…]

Recently, Xiangpiaopiao launched a freshly brewed light milk tea priced at 16 yuan, or 98 yuan per box, with the per-cup price nearly five times higher than its traditional products, quickly trending on social media. This new product, called "Pre-Qingming Premium Longjing Freshly Brewed Light Milk Tea," has drawn attention for using high-quality Pre-Qingming Premium Longjing tea. Some netizens argue that if the tea cost is really as high as 12 yuan as estimated, the pricing is still reasonable; but others question whether using premium Longjing for milk tea is wasteful, and worry about passing off inferior goods as superior. Official customer service responded that the tea bags carry a QR code for verification. Meanwhile, some consumers feel that at 16 yuan they still have to brew it themselves, which is not as good as buying freshly made milk tea in a store. This article will sort out the ins and outs of the incident and present the views of all parties. [more…]

The physical milk tea shop opened by Xiangpiaopiao on Chunxi Road in Chengdu has recently become a hot topic. The brand used a "tea-making boy band" as a selling point, recruiting male staff over 180 cm tall with good looks and charisma, and through social media voting selected 27 candidates, ultimately choosing 12 to work in the store. On opening day, long lines formed at the shop; the boy band members were responsible for packing orders and interacting with customers for photos, providing emotional value. However, some consumers pointed out that the drinks in the store are still mainly made by brewing tea bags and juice with hot water, which differs from mainstream freshly made tea beverages; the drink output efficiency is low, with wait times of up to half an hour, and photographers and other non-operational personnel were moving around the bar area taking photos without wearing masks or hats, raising questions about food hygiene. Xiangpiaopiao had previously used a similar strategy of highly attractive staff at a pop-up store by West Lake in Hangzhou, and this operation is seen as a continuation and upgrade of that marketing approach. [more…]

The COVID-19 pandemic has lasted for more than two years, and rising prices have spread to the beverage industry. Xiangpiaopiao announced on the evening of January 4 that it would raise prices for solid instant milk tea by 2%-8%, and Sexy Tea also raised most of its milk tea products by 1 to 2 yuan starting from January 7. This article sorts out the price increase details of the two brands, netizens' reactions, and the deeper reasons such as coffee futures doubling, shipping prices climbing, and raw material shortages. When coffee freedom was lost in 2021, will milk tea freedom also face a threat in 2022? What is left of the happiness of office workers? The article also mentions related product information from Front Street Coffee for readers' reference. [more…]

While brands like Heytea, Nayuki, Starbucks, and Luckin are fiercely battling it out in the end market—rolling out collaborations, launching new products, and cutting prices in turn—it is actually the ingredient and packaging suppliers behind them that are quietly making a fortune. From Jiahe Foods to Sanyuan Biology, from Tianye Co. to Hengxin Life, and on to Dexin Foods, a group of supply chain enterprises for the new-style beverage industry are collectively sprinting toward the capital market. They serve well-known brands such as Uni-President, Xiangpiaopiao, CoCo都可, Mixue Bingcheng, Genki Forest, Nayuki, and Luckin, and have achieved soaring performance through products such as sugar substitutes, juices, paper cups, and syrups. This article will sort through the listing landscape of these low-key suppliers and reveal the real path to riches for upstream enterprises under the wave of new consumption. [more…]

While Heytea, Nayuki, Starbucks, and Luckin are battling it out on the front lines over 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, an increasing number of raw material and packaging companies behind new-style beverages are beginning to sprint toward the capital market. Some of these companies provide non-dairy creamers 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, raked in huge profits, and collectively embarked on the path to listing. [more…]

The high-speed rail milk tea "That Girl" launched by China Railway Guangzhou Group has sparked widespread discussion since its debut, with its 26-yuan price tag, taste, and packaging design all becoming focal points of criticism among netizens. In response to the controversy, the head of Guangzhou EMU Catering Co., Ltd. responded on November 16, stating that the pricing takes into account production costs, transportation, and the special operating environment of high-speed rail, in line with relevant department standards, and promised to continuously optimize product quality based on passenger feedback. Whether this high-speed rail milk tea, which sells 3,000 cups daily and is often out of stock, can turn its reputation around is worth watching. [more…]

The winter strawberry season has arrived as promised, and Starbucks has seized the moment to launch its Red Strawberry series, featuring four drinks: Cheese Latte, Cheese Tea Latte, Mocha, and Cheese Frappuccino. With pink whipped cream topped and red sugar crystals, the visual appeal is undeniably eye-catching, and buying any of them also gets you a limited-edition sticker designed by holiday ambassador Henry Lau. Yet the first wave of consumer feedback has been sharply divided: on one side is the enthusiasm for photo ops, and on the other, complaints about it being "cloyingly sweet" and having an "artificial flavor." Some longtime customers have even noticed that the series is highly similar in recipe to the Strawberry Coconut Frappuccino that was discontinued half a year ago, questioning whether the brand is just repackaging the same old thing. Starbucks' Christmas season marketing this year doesn't seem to have won the same acclaim as last year's Red Fuji series. [more…]

The new-style tea beverage market has been stirring recently. High-end brands Heytea and Nayuki have successively announced price cuts, with the lowest dropping to 9 yuan. Nayuki launched a "Relax" series priced at 9-19 yuan, promising to launch at least one "single-digit" product every month, while Heytea announced it will not raise prices this year. Consumer reactions have been mixed, with some cheering and others questioning reduced cup sizes and lower quality. This article reviews the price-cut moves of the two major brands, netizen feedback, and industry data, analyzes the consumption trends and market logic behind the involution in new-style tea beverages, and includes related news about Front Street Coffee. [more…]

Oatly, the oat milk pioneer, recently released its full-year and fourth-quarter financial results for 2022, reporting a net loss of nearly $400 million for the year, further widening from 2021. Although sales volume in the Asian market grew 32% year-on-year, revenue in Asia fell by $800,000 in the fourth quarter due to the impact of the pandemic. China, as the core of Oatly's Asian business, accounts for as much as 93%, and fluctuations in its performance have a significant impact on the overall Asian market. Oatly quickly opened up the market with its positioning as a "new coffee companion" through partnerships with chain brands such as Starbucks, but now the plant-based milk concept has cooled, emerging brands are proliferating, consumers' acceptance of oat milk is still lower than that of dairy milk, and coupled with its relatively high price, Oatly faces the risk of being replaced. To this end, Oatly is trying to find new growth points by expanding into new products such as tea drinks and ice cream, as well as through financing. [more…]

Milk tea brands are shouting about price cuts while charging separately for toppings, delivery fees, and insulated bags—is that cup in consumers' hands really cheaper? This article starts with the ordering experience on Heytea's GO mini-program, breaking down the actual unit price of a 9-yuan Pure Green Tea after adding toppings, delivery fees, and other extra charges, and, in light of tea shop density, delivery efficiency, and the industry's cost structure, analyzes how this round of price cuts looks more like a marketing move than a genuine giveback. It also cites estimates from a researcher at the Guangdong Tea Beverage Industry Committee on the costs and gross margins of high-end milk tea, helping coffee and tea enthusiasts see the ledger behind the price. [more…]

After China Post opened a café, state-owned enterprises branching into the food and beverage industry drew attention. China Railway has also joined this trend, launching a railway cultural and creative themed restaurant at the Zhengyangmen branch of the China Railway Museum, covering healthy light meals and beverages. The beverage brand is named "Bendao Tea," featuring railway-themed decor and freshly made tea, juice, and coffee, priced at 12 to 32 yuan. However, consumers have reported that the drinks are too sweet and lack personalized customization options, and the store's location is rather remote with a hard-to-pronounce name, resulting in limited foot traffic. Previously, high-speed rail milk tea was criticized and trended on social media over price and taste issues, and high-speed rail coffee was also launched the same month. Unlike China Post's step-by-step approach with milk tea and coffee, China Railway is pursuing multiple tracks simultaneously—ambitious, but facing no small challenge. [more…]

After eight years, Nongfu Spring is once again making a push into the bottled milk tea sector. On October 12, its official WeChat account posted an article announcing a renewed layout for the "Da Milk Tea" series, launching jasmine, black tea, and oolong flavors, with a net content of 380 milliliters, highlighting selling points such as "0 added milk powder," "0 added tea powder," and "0 added flavorings." It is reported that this series uses concentrated milk and carefully selected whole-leaf extraction, with cold-chain storage and transportation throughout, and the JD.com presale price is 135 yuan for 15 bottles. Looking back to the end of 2013, Nongfu Spring had launched a matcha-flavored Da Milk Tea in a tumbler-shaped bottle, which faded out after a lukewarm market response. Now, bottled ready-to-drink milk tea is regarded as a new outlet, and in the hundred-billion milk tea market, street drinks, brewed drinks, and ready-to-drink drinks each occupy a share, with new brands such as Genki Forest and Hankou Erchang also entering the fray. Front Street Coffee believes that whether Nongfu Spring can win consumers' favor this time remains to be tested by the market. [more…]

Jiahe Foods delivered a rather unimpressive performance in the first half of 2024: revenue of 1.073 billion yuan, down 19.12% year-on-year; net profit of 69.4439 million yuan, nearly halved year-on-year. This company, known as the "king of non-dairy creamer," once held a leading position in the industry thanks to the era of Nestlé instant coffee and the explosive growth of the milk tea sector, but now faces a wave of new-style tea beverage brands collectively "removing non-dairy creamer." Starting from the financial report data, this article traces the rise and fall of non-dairy creamer from coffee companion to milk tea base, and how the trans fatty acid controversy has reshaped the industry landscape, and explores the prospects of Jiahe Foods in the era of zero non-dairy creamer. [more…]