Monday, September 21 2026

Tea brands collectively withdraw from delivery discount campaigns, the battle between cost and profit surfaces

Recently, several tea beverage brands—including Heytea, Nayuki, ChaPanda, Good Tea, Mixue Bingcheng, and Shuyi Tealicious—were reported to have jointly adjusted their full-reduction strategies on food delivery platforms. The original full-reduction discounts have been uniformly changed to 1 off 50, 1 off 70, or even canceled outright. Once the news broke, related topics quickly trended on social media, with views exceeding 180 million. Merchants say profits are thin, while netizens question why milk tea, which isn't cheap, still isn't making money. Behind this controversy lie both the pressure of platform commissions and delivery costs, and a reflection of the difficult position of the new tea beverage industry, caught between price cuts and losses. [more…]

Costa ready-to-drink coffee's sugar content quietly climbs, experts criticize it as contrary to the healthy sugar-reduction trend

Coffee is often labeled as a healthy drink, but the sugar problem in ready-to-drink coffee cannot be ignored. According to the British Mirror, Costa, a brand owned by Coca-Cola, has been quietly increasing the sugar content in its pre-packaged coffee, with some products seeing a one-third rise in sugar compared to 2019. Experts point out that this move runs counter to the sugar reduction initiative promoted by the UK government. Meanwhile, countries such as Singapore have introduced measures to restrict advertising for high-sugar drinks, and Chinese consumers have also begun to pay attention to sugar and sugar substitute options in milk tea and coffee. The health risks behind a sweet drink deserve the attention of every coffee lover. [more…]

Uni-President Assam Milk Tea prioritizes the sugar-free original flavor first—can 0 sugar and 0 sugar substitutes preserve the classic taste?

The bottled milk tea market is undergoing a health-oriented transformation. Uni-President Assam Milk Tea has launched its first sugar-free original flavor version, highlighting "true 0 sugar," meaning it contains no sucrose, sugar substitutes, or carbohydrates, and in particular explicitly avoids acesulfame potassium, sucralose, erythritol, and aspartame. The new product has the same 500ml capacity as the classic version and retails for about 3.6 yuan. Although its ingredients still include food additives, white granulated sugar and glucose syrup have been removed. Energy per 100 milliliters has dropped from 230 kilojoules in the classic version to 58 kilojoules, a significant reduction in sugar. In recent years, ready-to-drink tea and sparkling water have diverted some bottled milk tea consumption, while freshly made new-style tea drinks have also taken away younger customers. Uni-President's move is both a response to the sugar-reduction trend and a proactive innovation in the face of market competition. However, the technical difficulty of 0-sugar milk tea lies in balancing taste. Whether it can retain Assam's classic flavor after removing sugar will test the brand's research and development strength. [more…]

Nestlé and Master Kong enter the fray one after another—can label-free bottled beverages become a new trend in low-carbon packaging?

In recent years, as environmental awareness has risen, label-free bottled beverages have moved from once being considered "alternative" to becoming legalized. Brands such as Nestlé Japan Coffee, Asahi, Suntory, and Evian have successively tested the waters, and domestically, Master Kong has also launched label-free iced tea. Such products are mostly sold by the case, with only the shelf life and product name laser-printed on the bottle, while legal information is printed on the outer box. About 60% of Japanese consumers are willing to pay for them, mainly because it reduces PVC waste and the hassle of sorting. Domestic reactions are mixed: supporters believe it responds to carbon reduction, while those concerned see it as a promotional gimmick. This article sorts out the origins and development of this packaging change and explores whether it can be implemented over the long term. For friends who love drinking coffee, Front Street Coffee also continuously pays attention to such environmental trends. [more…]

HEYTEA's sub-brand Xixiaocha closes all stores: two-and-a-half-year journey ends, and the affordable tea beverage sector shifts

Heytea's sub-brand Xixiaocha recently closed its last store located in Guangzhou City Investment Building. From the opening of its first store in April 2020 to its complete withdrawal now, only two and a half years have passed. Xixiaocha once deeply cultivated six cities in the Pearl River Delta and opened 22 stores, focusing on affordable drinks priced from 8 to 16 yuan. Before closing, most stores were still profitable. At the same time, Heytea's main brand has continuously lowered prices since the beginning of this year, announcing that it will no longer launch products priced above 29 yuan, and all new products will be priced no higher than 20 yuan. The product positioning and price ranges of the two brands are increasingly overlapping. The last update on Xixiaocha's official WeChat public account remained on July 20, 2022, and its mini-program can no longer be searched. Heytea has not yet responded. This article reviews the rise and fall of Xixiaocha and analyzes its connection with the strategic adjustments of the main brand. [more…]

Heytea's Counter-Trend Price Cuts Draw Attention: Differentiated Strategies for Tea and Coffee Brands Under Cost Pressure

Starting in January 2024, Heytea quietly lowered the prices of several popular products, including Cheese Strawberry, Pure Grape, Pure Milk Tea, and Pure Green Tea, with reductions ranging from 3 to 7 yuan, and the cheese milk cap also became 1 yuan cheaper. This move was not publicly promoted, but was discovered by observant consumers on social platforms. At the same time, brands such as Chayan Yuese, Luckin Coffee, and Tims Coffee raised prices one after another due to rising costs of raw materials, labor, transportation, and energy. Why could Heytea cut prices against the trend? Some analysts believe this is related to its advantages in scale, brand, and supply chain control, and it also reflects the deeper logic of inflation being transmitted to end consumer goods against the backdrop of global quantitative easing. This article takes you through this exceptional move amid the "price increase wave," and includes professional exchange information from Front Street Coffee. [more…]

A Detailed Guide to Pour-Over Brewing for Specialty Coffee Beginners: The Complete Technique from Folding the Filter to the Blooming Pour

Pour-over coffee is often labeled as "lazy man's coffee," as if it requires no complex equipment to make easily. But truly brewing a delicious pour-over involves far more detail than one might imagine. From the way the filter paper is folded, the amount of coffee grounds and how they are tamped, to the two-stage water temperature reduction, the criteria for judging the bloom, and the stability of the water flow and circular pouring technique—every step directly affects the final flavor expression. This article systematically breaks down the seven basic steps of pour-over hand-brewed coffee and includes five practical tips to help coffee enthusiasts avoid common pitfalls and consistently brew clean, even, and fully aromatic specialty coffee at home. The article also incorporates product recommendations from Front Street Coffee as a reference for daily practice. [more…]

Nestlé Global Restriction: Ban on Marketing High-Sugar Products to Under-16s Starting July 2023

As consumer demand for coffee becomes increasingly routine and health-oriented, major brands are facing new market challenges. Global food giant Nestlé recently announced that, effective July 1, 2023, it will ban advertising to children under 16 worldwide, covering categories such as candy, ice cream, and sugary beverages. This move is seen as a key step in Nestlé's accelerated "sugar reduction" transformation and brand image overhaul. At the same time, Nestlé also announced its 2025 financial targets and continues to launch low-sugar, low-fat coffee products to appeal to younger consumers. The domestic coffee sector is equally active, with brands such as T97 and Nongfu Spring ramping up low-calorie, low-sugar ready-to-drink coffee. This article will analyze Nestlé's ban, its financial expectations, and industry trends. [more…]

Two major coffee-producing regions in Indonesia have been hit by disasters in succession; output may decline further, and prices could keep rising.

Recently, several major coffee-producing regions in Indonesia have been hit by natural disasters. A magnitude 5.0 earthquake struck near Bandung in West Java on the island of Java, causing injuries and damage to homes; the Aceh region in northern Sumatra was hit by heavy rain and strong winds, and with the coffee harvest season underway, harvesting work has been disrupted. At the same time, several provinces are also facing ongoing drought, and coffee production may decline further. This article summarizes the disaster situations in various areas and their impact on Indonesia's coffee industry. [more…]

Brazil Fires Cause 14.7 Billion Reais in Agricultural Losses; New Coffee Crop Expected to Fall 6.8%

Brazil has recently suffered severe fires and a historic drought, with agribusiness losses reaching 14.7 billion reais, and coffee-growing regions have also been affected. According to estimates by the Brazilian Confederation of Agriculture and Livestock, the fires from June to August caused enormous economic losses, with São Paulo state hit hardest. At the same time, Brazil is experiencing an extreme drought, with more than a thousand cities going months without significant rainfall, many rivers shrinking, and coffee tree growth severely affected. The official agency Conab has already lowered its forecast for 2024/25 coffee production, expecting a reduction of 4 million bags, a decline of 6.8%. If weather conditions do not improve before the end of the year, production may decline further, and coffee prices will remain high. [more…]

South America Hit by Dual Blow of Drought and Wildfires: Colombia's Coffee Production Declines, Inventories Dwindle, Exports Under Pressure as Prices Rise

A drought and forest fires lasting for months are sweeping across South America, and Colombia has not been spared. Forests in many places have been burned, water sources are running dangerously low, the water level of the Amazon River has plummeted, and Cauca Department has suffered its worst fires in nearly three decades, with large numbers of coffee crops damaged. Water rationing policies have left coffee farmers in a dilemma: insufficient irrigation affects yields, while exceeding water limits brings fines. The latest data show that Colombia's coffee production had fallen to 1.05 million bags in August, with inventories down 7.2% month on month. As the world's third-largest coffee-producing country, declining output and inventories are pushing up international coffee prices. [more…]

Adding extra toppings to meet the minimum order for milk tea delivery and then requesting a refund sparks heated debate, leaving staff baffled

During the Double Eleven shopping festival, many consumers, in order to use platform coupons, adopt a method of first adding extra items to reach the threshold and then requesting a refund, so as to buy their desired products at a lower price. This practice, known as the "big promotion add-on refund trick," was originally seen mostly on online shopping platforms, but has now quietly appeared in the tea beverage delivery industry. Recently, a milk tea shop employee posted a customer order, with notes requesting that the toppings not be packed separately and intending to request a refund afterward, which left the employee and netizens astonished. The incident sparked widespread discussion, with netizens both curious about the feasibility of the operation and expressing sympathy for the merchants and employees. This article will recount the incident and analyze the platform rules and industry dilemmas behind this phenomenon. [more…]

Heytea Denies Rumors of 30% Layoffs, Intensifying Competition and Price-Cutting Strategies in the New-Style Tea Beverage Sector Draw Attention

Recently, Sina Finance exclusively reported that Heytea had initiated internal layoffs involving about 30% of its employees, and the news quickly sparked widespread discussion. Heytea responded promptly, saying the report was untrue and that there was only normal personnel optimization based on year-end performance reviews. This incident has once again drawn public attention back to the new-style tea beverage sector: Nayuki is expecting losses, Heytea's growth is slowing, store expansion is decelerating, and homogenized competition in the industry is becoming increasingly fierce. At the same time, Heytea's countercyclical price cuts and moves to tap lower-tier markets have also sparked discussion. This article will sort out the sequence of events and present Heytea's operational changes and market challenges since 2021. [more…]

Tims China added only 1 net new store in Q2, with large-scale store closures and cost cuts driving EBITDA turnaround

Tims China's Q2 2024 financial report shows that following the closure of 15 directly operated stores in Q1, another 34 were closed in Q2, leaving a net store opening of only 1 and reducing the total number of stores to 907. The significant store closures led to an overall cost reduction, helping adjusted EBITDA turn positive for the first time at 4.1 million yuan. However, controversies over store closures continue on social media, with netizens complaining about the coffee's taste and service, though there are also loyal fans of the bagels and dark roast coffee. CEO Lu Yongchen stated that 65 million USD in financing has been secured, and future efforts will focus on core business and supply chain. Front Street Coffee is monitoring this chain brand's developments and providing in-depth analysis for enthusiasts. [more…]

Brazil Queen's Farm Yellow Bourbon Coffee Flavor Analysis and Brand Recommendation Guide

Brazil, as a major global coffee producer, has faced pressure to reduce output in recent years due to drought and climate impacts, with production in 2021 expected to drop by 20 to 30 percent. Among the many Brazilian specialty coffees, Queen Estate's Yellow Bourbon coffee is highly favored for its low acidity, rich body, and clear sugarcane sweetness. This article will guide you through the current state of Brazilian coffee regions, the historical background of Queen Estate, the characteristics of the Yellow Bourbon variety, the semi-washed processing method, and Front Street Coffee's roasting and brewing insights, offering a comprehensive analysis of the flavor code of this Brazilian Queen Estate coffee and providing a reference for coffee lovers when making purchases. [more…]