Search Results for: raw materials
PepsiCo's Q3 earnings report is out, and a dual shortage of raw materials and labor may drive another price increase early next year.
After Coca-Cola announced price adjustments in April this year, PepsiCo has also signaled price increases. Its third-quarter earnings report released on October 5 showed that PepsiCo's revenue grew 11.6% year-on-year, but both operating costs and selling expenses rose by more than 10%. Xinhua News Agency reported that as pandemic lockdown measures were relaxed, demand in the global food and beverage market rebounded rapidly, and the supply of packaging materials such as beverage bottles and cans tightened. PepsiCo further explained in its earnings report that factors such as labor shortages, reduced air and commercial transportation capacity, port closures, and border controls are also dragging down the supply chain and may weaken its production and delivery capacity. Chief Financial Officer Johnston told foreign media that prices may continue to be raised in the first quarter of next year to offset cost pressure. Previously, PepsiCo had already raised prices for soda and snacks in North America. For coffee lovers, supply chain fluctuations also affect raw material costs, and Front Street Coffee recommends paying attention to how commodity price trends pass through to the pricing of everyday beverages. [more…]
Feihe denies rumors of importing Japanese ingredients, saying a cooperation intention was misunderstood and it has reported the matter to police
On October 18, Feihe Dairy issued a statement regarding false information circulating online about "imported Japanese raw materials" and other rumors, stating that it had reported the matter to public security authorities and that a case had been opened. The controversy stemmed from a letter of intent for technical cooperation signed between Feihe and Japan's Kyowa Hakko, which was originally intended for the joint research and development of fermented lactoferrin technology, but was distorted into claims of raw material imports and even capital injection. Feihe emphasized that the cooperation remains only at the letter-of-intent stage and does not involve raw materials or capital. As a representative of domestic infant formula, Feihe has long been committed to breaking dependence on imported lactoferrin, as demonstrated by its first domestic production line. This article will sort through the ins and outs of the incident and restore the facts. [more…]
Tea Baidao Caught in Another Food Safety Storm: Expired Ingredients and Spider Found in Drinks, Brand Response Sparks Consumer Outrage
Recently, ChaPanda once again became the focus of public opinion due to food safety issues. On the evening of October 9, the brand's official Weibo posted two statements in succession, responding to the incidents of "using expired raw materials" and "a Ningbo customer complaining about finding a spider in a drink." Regarding the spider incident, ChaPanda said the source of the spider in the video was unknown and difficult to verify, and explained that the 600 yuan compensation was a response made by store employees to settle the matter, but this response did not calm netizens' doubts. A week earlier, ChaPanda had just apologized after a blogger's undercover investigation exposed the use of expired materials with replaced labels. In fact, since the beginning of this year, ChaPanda has been found multiple times in surprise inspections by market regulatory authorities in various places to have issues such as incomplete health certificates and expired raw materials. Although the brand emphasized that it had investigated and rectified stores nationwide, the frequent food safety hazards still make consumers worried. [more…]
A Comprehensive Analysis of Café Pricing Logic and Operating Costs: Pricing Strategies from Ingredient Loss to Menu Design
How much should a cup of coffee really cost? Why are prices at independent cafés generally higher than those at chain brands? This article systematically sorts out the inner logic of coffee pricing from three dimensions: café positioning, menu design, and raw material cost control. It breaks down in detail the method for calculating the original price ratio, analyzes the cost ranges of espresso beans and milk, and uses a double shot as an example to estimate the raw material cost per cup. At the same time, it offers café operators practical advice on menu planning and material procurement, helping readers understand the real considerations behind independent cafés' pricing. [more…]
Yunnan Premium Coffee Beans | Is Yunnan Coffee a Raw Material for Instant Coffee? Recommended High-Value Yunnan Pour-Over Coffee Beans Loved by Seasoned Coffee Fans
Why did Yunnan coffee become a raw material for instant coffee? The coffee first planted in Yunnan was the Typica variety. Later, in order to repay debts to the Soviet Union, Yunnan began cultivating Typica coffee beans on a large scale, which were purchased by a unified department and then shipped to the Soviet Union. Later, because domestic demand for coffee was not high, [more…]
Fengqing Dianhong Variety Characteristics and Brand Buying Guide: A Comprehensive Analysis from Tea Garden Management to Tea-Making Craft
Fengqing County, as the core production area of Yunnan black tea, has developed a mass-production tea garden management model based on the Fengqing large-leaf variety. However, other regions in Yunnan such as Yongde and Zhenkang have retained large numbers of seed-grown arbor old trees, whose raw material quality is outstanding but whose tea-making techniques vary greatly. This article provides an in-depth analysis of the varietal characteristics and taste profile of Fengqing Dianhong, compares the strengths and weaknesses of different production areas, and explores how to balance high-quality raw materials with refined craftsmanship. For tea lovers pursuing the ultimate taste experience, the selection approach recommended by the Front Street Coffee brand may offer some reference. Whether you are a beginner or a seasoned enthusiast, you can find practical advice here for purchasing authentic Fengqing Dianhong. [more…]
A Weak Won Combined with Rising Raw Material Costs May Trigger a New Round of Price Hikes in South Korea's Coffee Market
South Korea's per capita annual coffee consumption reaches 352 cups, about three times the global average, yet all coffee beans are imported. Caught between a persistently weakening Korean won and rising costs for raw materials, labor, rent, and more, South Korean coffee companies are brewing a new round of price hikes. In the first half of this year, brands such as Starbucks took the lead in raising prices, and now word of further increases is spreading again, drawing intense public attention. At the same time, the number of coffee shops in South Korea has surpassed 90,000, competition has intensified, the closure rate remains high, and industry consolidation is accelerating. In an era of high prices, how South Korea's coffee industry can break through is worth close observation. [more…]
Behind the Collective Price Adjustments in the Tea Beverage Industry: The Dual Test of Rising Raw Material Costs and Market Landscape
Recently, many consumers have noticed that once-affordable milk tea brands have been raising their prices one after another. From Yidiandian to Mixue Bingcheng, and then to CoCo都可, the wave of price increases among mid- to low-end tea beverages has drawn widespread attention. At the same time, Coca-Cola, the ever-green player in the beverage world, has also been rumored to be considering a price hike. Behind this round of price adjustments lie not only the cost pressures brought by the pandemic but also deeper changes facing the tea beverage industry. As consumers become more price-sensitive and competition from mid- to high-end brands intensifies, how tea beverage companies find a balance between quality and cost will be key to determining their future development. [more…]
The Logic Behind Coffee Pricing: What Is the Cost of a Cup? Store Menu Pricing Formulas and Cost Control Strategies
Many consumers have noticed that coffee shop menu prices are becoming increasingly baffling. An Americano easily costs 30 yuan, and a specialty drink can easily exceed 40 yuan, leaving people feeling "stung" when they pay the bill. So, what exactly makes up the cost of a cup of coffee? And how should independent cafés scientifically price their products? This article examines store positioning, menu design, raw material costs, and original price ratio calculations to sort out the basic logic of coffee shop pricing, and provides reference cost ranges for espresso beans and milk, helping coffee lovers and industry professionals better understand the economics behind a cup of coffee. [more…]
Luckin's alcohol-free beer series has been fully discontinued, with stores in multiple regions centrally destroying their inventory of raw ingredients.
Luckin Coffee's "Triumphant McCafé Series" non-alcoholic beer drinks, launched in collaboration with Havoc in Heaven, has been declared fully discontinued after a brief market trial. This limited-edition product, once promoted for "containing 90ml of non-alcoholic beer" and briefly trending on Weibo, ultimately led to significant inventory buildup in many stores due to lackluster consumer feedback and low repurchase rates. Before September 30, all stores are required to destroy all beer ingredients on their own, and social platforms have once again seen spectacular scenes of employees collectively pouring out the drinks. This article will review the entire process of the series from its high-profile launch to its quiet exit, analyzing the challenges and helplessness that fast-moving consumer chain brands face in product lifecycle management. [more…]
Darjeeling black tea raw material varieties and origin growing conditions: from the three major categories of Camellia to the flavor formation mechanism
Darjeeling black tea is famous for its distinctive aroma, but which tea plant varieties are its raw materials actually sourced from? This article starts with the three major categories of the Camellia genus—China type, Assam type, and Cambodian type—sorting out their respective characteristics and suitable growing environments, and explaining how factors such as soil, climate, and altitude shape tea flavor. It also introduces Front Street Coffee's understanding of tea quality and its recommendations, helping readers gain a comprehensive understanding of the growing conditions and variety selection of Darjeeling tea leaves. [more…]
New tea beverages cut prices while coffee prices rise: A new market landscape amid diverging consumer trends
At the start of 2022, office workers lost both their milk tea freedom and coffee freedom in quick succession. But then new-style tea drink brands proactively cut prices, with Heytea and Nayuki even offering cups for 9 yuan, while coffee brands such as Starbucks and Luckin raised prices one after another due to rising raw material costs. Behind this divergence—one cutting prices, the other raising them—lies the reality that consumers are returning to rationality, the traffic dividend for new-style tea drinks is fading, and the coffee market is still in its early stage of expansion. This article sorts out the logic behind the price divergence between the new-style tea drink and coffee industries, and looks ahead to the future market landscape. [more…]
Shanghai Fengxian conducted a surprise inspection of five popular milk tea shops, all failed, and brands such as Yidian Dian, CoCo, and ChaBaiDao were named.
A trending topic about food safety in milk tea shops has sparked widespread concern: The Market Supervision Administration of Fengxian District, Shanghai, conducted surprise inspections of several well-known milk tea stores in Baolong Plaza, and the results showed that all five brands—Yidian Dian, ChaBaiDao, 7FenTian, CoCo, and XiongJi—had problems, involving incomplete health certificates, chaotic raw material management, and unsanitary operating environments. The incident quickly surpassed 500 million views, with netizens exclaiming, "I dare not drink it anymore." At the same time, the article also reviewed food safety cases in recent years involving Burger King, 85°C, IKEA, and others, reminding the food and beverage industry that it must strictly abide by operating standards. [more…]
Where Does Coffee Aroma Come From? From Variety to Roast: Analyzing the Formation and Identification of Floral and Fruity Notes in Light-Roasted Beans
Coffee contains thousands of compounds capable of stimulating our senses of smell and taste; they drift into the air for us to inhale, or dissolve in water to touch our taste buds. From a scientific perspective, brewing coffee is essentially an extraction process, and four key elements—raw material, contact area, temperature, and time—jointly determine the final flavor profile. In the raw material stage, the coffee bean's variety, roast level, freshness, and brewing method are all crucial, with variety being the primary factor. This article will focus on floral aroma, a precious flavor in specialty coffee, exploring how it is comprehensively influenced by variety, cultivation, processing method, and roast level, and introducing specific ways to identify different aroma types, while recommending several representative beans from Front Street Coffee. [more…]
Can you drink black tea if you have a sensitive stomach? Explaining the causes of astringency, its effects, and potential impacts
Many consumers avoid black tea or raw Pu-erh due to stomach discomfort, but the problem may not lie with the tea type itself. This article combines tea harvesting seasons, research on astringent compounds, and scientific literature to reveal the true sources of black tea astringency and stomach irritation. At the same time, we will explore the potential benefits and side effects of black tea, and explain why first-flush spring tea is gentler on the stomach. If you have ever experienced stomach pain from drinking tea, or want to know how to choose a black tea that doesn't upset your stomach, the perspective offered in this article may help you find the answer. Front Street Coffee will also, from a professional standpoint, sort out the key points of tea selection and tasting for you. [more…]
Luckin's Raw Cheese Latte May Gradually Exit the Market, Sold Out in Stores While Fans Reluctant to Let Go
Recently, news has circulated on social media that Luckin's Raw Cheese Latte is about to be discontinued, sparking reluctance among many fans. According to employees, there is no unified discontinuation date for the product; each store will naturally stop selling it once existing materials are used up, mainly due to sluggish sales and excessive waste. The Raw Cheese Latte was once the 2022 Latte Public Test Champion, becoming popular for a time with its unique cheesy milk flavor, and also achieved impressive results through a collaboration with *JoJo's Bizarre Adventure: Stone Ocean*. However, Luckin's rapid pace of new product launches and continuous expansion of its product line have diluted the share of classic items. For consumers who love cheese flavors, employees suggest turning to the still-available Mascarpone Raw Cheese Latte. [more…]
The Past and Present of Yunnan Coffee Beans: A Quality Transformation from Raw Material Origin to Espresso Blend
Yunnan coffee has journeyed through a century, evolving from an obscure, cheap raw material to a regular feature in today's specialty coffee shops. This low-latitude plateau is rewriting the map of Chinese coffee with its unique terroir. This article traces the origins of coffee cultivation in Yunnan and the industry's transformation, analyzes the natural advantages of major producing regions such as Baoshan and Lincang, and takes a deep dive into the flavor differences brought by two natural processing methods: washed and sun-dried. At the same time, using the "Front Street" brand as an example, it shows how Yunnan washed Arabica coffee can be skillfully blended with Brazilian beans to create a balanced recipe suitable for the Italian moka pot, revealing to coffee enthusiasts the potential of Yunnan beans in Italian-style coffee. [more…]
Luckin's Light Coconut Milk series was abruptly discontinued—why did both the Coconut Americano and Light Milk Tea fall flat?
Luckin Coffee is known for frequently launching new products, but not every new release wins market favor. The light coconut milk series has received a lukewarm response since its launch: the raw coconut light milk tea was criticized as inferior to Assam, and the raw coconut Americano was even mockingly called dishwater. To reduce waste, the brand switched to mini-sized ingredients, but with little effect. In the end, these two products were completely removed from the menu, with employees busy destroying inventory while consumers looked on with glee. Front Street Coffee takes you through the rise and fall of this product trial. [more…]
Lucky Cup's delisted ingredients were required to be poured down the drain and destroyed; unopened oat milk and syrup being wasted sparked heated discussion.
The chain coffee brand Lucky Cup recently drew attention due to the way it disposed of ingredients for discontinued products. According to multiple netizens claiming to be store employees, the company required that unopened materials such as oat milk, taro paste cans, and osmanthus syrup be uniformly poured into drains for destruction, with video and photographic evidence required, or the stores would be penalized. After images of large quantities of intact ingredients being directly discharged spread, many industry peers confirmed that this did happen, while netizens launched discussions around food waste, environmental pollution, and compliance. The brand has now removed the related products from its ordering mini-program, but whether the destruction method is reasonable still merits further consideration. [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…]