China Food

“Tea, coffee and wine” race track scuffle

tea shops make coffee and coffee shops buy wine.
Seesaw has always been famous for selling boutique coffee and is loved by circle lovers, but recently, the company announced that it would try a new model  “ Day coffee and night wine “– selling coffee during the day and wine at night.  
Selling wine in cafes is not exclusive to seesaw. Two years ago, Starbucks also aimed at this field and opened bar mixato.  
This year, in Shanghai, Chengdu and other places, BAR MIXATO is still expanding stores. The new world store opened earlier this year is the eighth wine shop in Shanghai.  
Before that, the business of the tavern had become hot. Since the beginning of this year, with the policy dividend of night economy and the listing of Helens, the first chain tavern brand in China, in Hong Kong, this field is attracting more attention. At this time, seesaw’s entry is not surprising.  
source seesaw official microblog  
Seesaw is not the only brand that crosses from one outlet to another.  
More and more new tea brands are overweight the coffee market. Recently, Xicha and LeLe tea had an investment storm. Soon after, they announced their first investment – seesaw a + round of financing of more than 100 million yuan.  
Before that, new tea enterprises, including Xi tea, Naixue tea and tea Yan Yuese, had already crossed the border to the coffee market by launching “light coffee” products. Previously, Naixue’s tea also opened a “Naixue Pro” store for business people, which is the main coffee product.  
New tea brands sell coffee, coffee shops launch wine products, and a “big scuffle” of the beverage track is in full swing. These enterprises are already in a highly competitive market, and have entered a new battlefield. What does cross-border bring to them?
Is the wine business in the coffee shop established?  
Day coffee and night wine selling are the new business format recently announced by the boutique coffee brand seesaw, which also marks the follow-up of the boutique coffee brand after Starbucks in this field.  
Wu Xiaomei, founder of seesaw coffee, recently mentioned to the media that in August this year, seesaw will launch a new model of “Japanese coffee night wine” in a store in Jing’an District, Shanghai. Seesaw has developed several liquor products. If the sales effect is good, they will be ready to promote in all stores.  
As the first batch of boutique coffee brands in China, seesaw has always wanted to tell stories different from other players. Compared with manner coffee’s positioning of “popularization + high quality”, seesaw focuses on the research and innovation of coffee drinks, such as adding fruit juice and bubble water on the basis of coffee beans.  
In the past year, seesaw launched many similar “light coffee” products. On the way to further seek differentiation, they officially expanded to the wine industry.  
source seesaw official microblog  
For a long time, domestic pubs mainly sell alcoholic drinks and snacks, and most of the main consumer groups are the young generation. Long before seesaw decided to explore a new model, many domestic pubs had derived the “day coffee night wine” model, as well as small pubs with Qing bar and main dishes supplemented by entertainment.
Two years ago, Starbucks, which is dominated by coffee, has stepped into alcoholic drinks. At the end of April 2019, Starbucks launched the first distillery in China on the Bund of Shanghai. A few months later, it opened bar mixato in the Zhenxuan flagship store of Kerry Center in Beijing. In the future, such stores or formats have been extended to all parts of the country.  
“Mixato” means “fusion” in Italian, which means the integration of wine and coffee. In Starbucks, coffee and wine products such as espresso Martini are sold.  
Starbucks bar mixato, tuyuan’s official microblog  
It is worth noting that at almost the same time, Naixue’s tea, a new tea brand, also opened a wine house “bla bla bar” in Beijing. Bla bla bar focuses on light alcohol cocktails. In terms of store decoration and bottle design, it is considered to be more inclined to attract young female consumers.  
The wine business is promising, and the coffee shop’s wine business is also logical.
Coffee focuses on daytime consumption, while wine points to nightlife, which makes it possible to operate by time. At the same time, boutique coffee is aimed at young consumers and is also a regular guest of pubs. Most of these boutique cafes are located in first tier cities such as Beijing, Shanghai and Guangzhou, and a small number are located in second tier cities, which is also the market with the strongest wine consumption power.  
Of course, coffee brands have sold wine one after another. A very important factor is that this market has strong profit space and is not saturated.  
The profitability of the tavern business is considerable. It can be seen from the operating conditions of Helens that according to the financial reports, Helens achieved revenue of RMB 115 million, RMB 565 million and RMB 818 million in 2018, 2019 and 2020 respectively; The net profit was 11 million yuan, 79 million yuan and 76 million yuan respectively.
Look at the gross profit margin. From 2018 to 2020, the gross profit margin of Helens’s own liquor was 71.4%, 75.3% and 78.4% respectively, which maintained a high level even during the epidemic period.  
Compared with the coffee market and tea market that have experienced fighting, the penetration rate of the domestic tavern market is low. Both the consumption power and the chain of tavern brands need to be improved.  
According to frost Sullivan data, Helens ranked first in China’s Tavern industry in 2020, accounting for about 1.1% of the market share.  
This also means that there is still room for many new players to enter the game in this market that has not been fully reclaimed.  
At the same time, as of October 2020, China has issued 197 policies related to night economy, which has a significant driving force to promote economic internal circulation. From the perspective of policy dividend, this is also a good time to enter the liquor industry.  
However, this market will also usher in more fierce competition in the future. Due to the impact of the epidemic, a large number of pubs have ushered in a wave of reshuffle, but Starbucks and Naixue’s tea are still overweight the business of pubs, and the expansion speed of head pubs such as Helens has also increased.  
On March 30, 2021, Helens went to Hong Kong for listing, which also revealed the signal of rapid expansion in the future. In the more than 10 years since its establishment, Helens has opened 351 pubs. In 2019 and 2020, the number of newly opened pubs in Helens was 93 and 105 respectively. In 2021, it announced that it would open 400 new stores.  
With the entry of more capital and brands, the tavern business will soon become the Red Sea.  
Tea brands pour into the coffee track  
Coffee brands sell wine, and “happy tea” pour into the coffee track one after another.  
Recently announced to give up the investment in “Lele tea”, and injected an investment into the boutique coffee track. On July 21, seesaw coffee announced that it had completed the a + round of financing of more than 100 million yuan, led by hi tea and followed by Hony Baifu, the old shareholder. This is also Xi tea’s first shot in this field.  
Before the investment of Xi tea, new tea brands had entered the coffee market on a large scale.  
At the end of 2018, Naixue’s tea launched the first coffee product “frozen top mandarin duck”, followed by new products such as big coffee orange and big coffee lemon; In March 2020, hi tea entered the market and launched coffee Bobo ice, cheese coffee, etc. all over the country. Consumers also lined up for a new cup of coffee; In October 2020, chayan Yuese and three and a half meals jointly developed a new special drink mixed with milk tea and coffee.
tuyuan Xicha official microblog  
For “tea lovers”, a major purpose of selling coffee is to create more sales in a limited space.  
At present, boutique coffee shops are mainly concentrated in first tier cities and need to move towards the mainstream. Seesaw, manner and other coffee brands hope to promote this business to more consumers, but it is still on the road of popularization.  
Most of the new tea brands launch “light coffee” products, and this business is for the public.  
Compared with high-quality coffee, it attracts consumers who pursue taste and taste, “light coffee” products are aimed at a wider range of consumer groups.  
The American coffee of 5 yuan, latte of 6 yuan and mocha of 10 yuan in Michelle ice city sold the coffee at a cheaper price than the crazy subsidized Ruixing coffee. Most of the tea and coffee products like tea and Naixue are 20-30 yuan, which is easier to be accepted by people than boutique coffee shops with a per capita of more than 35 yuan.  
In terms of product positioning, style and price, the “light coffee” mode of new tea drinks is very different from that of boutique cafes. With the hot sales of products, they will rob those groups not covered by boutique coffee.  
At the same time, the core purpose of light coffee products is to supplement the menu, provide consumers with more choices and enhance market competitiveness.
Through coffee products, some tea drinks are still further exploring profit space.  
In 2020, Naixue opened a new model of “Naixue Pro” store. At that time, the relevant person in charge of Naixue told Caijing that its main coffee product line focused on creating a “business scene” and wanted to test consumers’ acceptance of Naixue selling coffee.  
Naixue pro and Ruixing coffee are similar in pricing, generally between 14 yuan and 30 yuan, which can attract business people, but pay attention to “Hall Food + takeout” in the store. The area of Naixue Pro store is basically between 80-200 square meters, which is lower than that of large store model. This is also considered as a major attempt of Naixue to explore the profit model.  
Compared with the wine business of boutique coffee shops, making coffee by new tea brands is more like a side attack, but on the basis of “light coffee”, they may also expand to boutique coffee in the future.  
The “big scuffle” is becoming more and more intense  
From fine coffee to new tea brands, giants are competing for cross-border, quite a “big scuffle”.  
In addition to entering the coffee market, new tea has also tried many diversified formats such as baking and retail. Naixue’s tea has created a precedent for selling European bags, and Xi tea has launched retail products such as tea bags.  
In different fields, there are even many strange players: Wahaha opens a milk tea shop, nongnongshan spring sells ear hanging coffee online, and Hankou No. 2 factory sells “hyaluronic acid” drinks.  
On July 20, a number of media reported that mingchuang premium products fought for small tea through the new brand pintea and crossed the border to the tea market. On the wechat applet launched by the brand, consumers can make a single purchase. If the single purchase is successful, they can enjoy a discount.  
Most of the cross-border and cross-border industries of giants are tuyere industries. These industries have amazing growth rate and great development potential. Whether it is coffee or tea, the product profit margin is not low, and the entry threshold is not so high.
For example, in the new tea industry, AI media consulting report mentioned that the required production technology is low, the product formula is easy to imitate, and the production process of making new tea by different brands is roughly the same. Naixue’s tea financial report shows that the gross profit margin of new tea drinks is considerable. In the three years from 2018 to 2020, the gross profit margin of Naixue tea was 64.7%, 63.4% and 62.1% respectively.
Cross border can not only help enterprises expand their scale, but also spread risks.  
Any tuyere industry will experience a process from rapid growth to gradual decline. Today, Coca Cola has become a huge diversified group, but the carbonated beverage market that first supported its rise is gradually declining. According to Euromonitor statistics, the share of carbonated drinks in the soft drink market has declined from 36.9% in 2016 to 35.2% in 2020.  
In addition, many tuyere industries have gone through the early development period and are about to produce the first batch of listed enterprises. After Naixue’s tea and other enterprises go public, they need to be responsible for investors and tell new stories to maintain the market’s confidence in it.  
It can be seen that risk diversification is also an important factor for enterprises to choose cross-border.  
However, it is not so easy to cross the border.  
Most tuyere industries are in fierce competition. When enterprises enter the “big scuffle”, the competitiveness of products will be more tested, and the reshuffle may occur at any time.  
In the past, friends and businessmen who cooperated in the past may become today’s competitors, and the competition between giants in different fields is becoming more and more intense.  
Cross border risks also come from the huge investment that may be caused.  
Looking at the giants in the global food and beverage industry, most of them have experienced the process from single product to cross-border and rich business, and most of them have expanded from similar fields.  
Seesaw sells wine, likes tea and coffee. Naixue’s tea sells baked products. In fact, it is still developing in the field of drinks and food. It only needs to expand more categories.  
Hi tea sells retail products, although it has entered a new field, but the relative risk is small. It only needs to operate online e-commerce channels and be responsible for product packaging design, and the production link is completed by the agent factory.  
Compared with the expansion of categories, some companies continue to implement acquisitions to achieve the purpose of rapid foothold in new industries. In the future, the new tea and fine coffee industry will gradually move towards the era of M & A.  
At present, these cross-border new tea brands and coffee brands are not enough to change the original pattern of each track, but it can be predicted that they will continue to layout and attack. The scuffle at the drink track will become more and more intense in the future.  
Author: Zhong Wei; Source: connect insight (ID: lxinsight), reprint has been authorized. Reprint authorization and media business cooperation: Amy (wechat: 13701559246);
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