China Food

The new tea gods fight, and the investment routes show their magic power


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in the environment of category, store opening and IPO, new tea players such as happy tea, tea Yan Yuese and honey snow ice city are also breaking through the inner volume as investors.
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The new tea brand is not working properly?
In the first half of the year, in order to compete for the market share of the new tea track, the tea brand continued to push through the old and bring forth the new “enlarged moves” in terms of products.
From the perspective of its own business, the volume of new tea has intensified since this year. Some people have been listed to ring the bell and others have opened 10000 chain stores. In this 100 billion scale track, a market pattern has been formed with Naixue and Xi tea as the first echelon, and honey Snow Ice City, tea Yan Yuese, Gu Ming and other second echelons.
As the track became more and more hot, the head brand began to sit still. While its own brand took root in the market, the head brand began to look for the second growth curve.
The market pattern is obvious. The brand has built high-rise buildings, but what is the next step? In other words, the brand has a firm foothold in the market. How to enhance its competitiveness and broaden the realization path?
To this end, new tea brands have pondered the possibility of expansion beyond their main business. Under the environment of category, store opening and IPO, new tea players such as happy tea, tea Yan Yuese and honey snow ice city are also breaking through the inner volume with the role of investors.
On September 13, Snow King investment company was established in snow ice city, with Liu Yang as the legal representative. The company is 100% controlled by Snow Ice City Co., Ltd. snow ice city has a high-profile investment layout, which is the third head brand to invest after tea investment in coffee and tea Yan Yuese investment in fruit tea.
Source: tianyancha
From the action of this year’s new tea brands, the top brands have focused on investment. On the one hand, investment can supplement the category and broaden the ecology, on the other hand, the brand has also strengthened its anti risk ability. After a few years of savage growth, perhaps investment will become a way to break the situation of new tea.

New tea drink

This year, Naixue swept the social network with a “domineering jade and oil Mandarin” product, which attracted many netizens to punch in one after another. As a result, the value of this niche fruit, oil Mandarin, soared from 5 yuan per kilogram to 40 yuan per kilogram. Naixue’s “domineering jade and oil Mandarin” After a complete victory, other brands naturally did not want to lag behind. Then Xicha launched the wangzha oil Citrus series, with a total of 4 products in the whole series, trying to win back the city.
In the new tea industry with serious homogenization, major brands are working hard on products and want to create explosive products that are alienated from business trips to seize dividends. After oil oranges, the new online red fruit “yellow skin” has quickly become red. Tea brands of different sizes, such as Xi tea, yihetang, taigai, Lele tea and mixed juice, have all concentrated on the new “yellow skin”.
Whether it is oil Mandarin, yellow peel or raw coconut, it points to the collective anxiety of new tea product innovation.
The new tea market with almost no access threshold has been breaking out, and the resulting new tea industry has become more and more serious. In terms of diversified development, the competition among tea brands has not stopped. It is worth mentioning that the category inner volume is only a part of the new tea inner volume, and the inner volume is more intense in the expansion of new tea brands.
According to Tianyan survey data, there are more than 378000 new tea related enterprises with names or business scope including “tea beverage, milk tea and food beverage” and the status of “in business, surviving, moving in and moving out”. The tea industry is developing at a high speed with “visible to the naked eye”.
In terms of the number of stores, as early as last year, the number of stores in mixue ice city exceeded 10000, focusing on the sinking and rapid expansion of the market. In September this year, shuyishaoxiancao stores exceeded 7000 for the first time. Yihetang stores have also exceeded 5000. The new tea industry will run out of the next WanDian brand in the near future.
Since the end of 2020, top brands such as hi tea, Naixue’s tea and honey snow ice city have revealed their IPO plans one after another, and some waist brands have followed suit to continuously raise funds. On June 30 this year, Naixue’s tea was officially listed on the Hong Kong stock exchange, becoming the first share of new tea drinks. Then, the news of preparation for listing has been revealed by honey snow ice city and tea Baidao. There are also rumors about the listing of the second share of milk tea On the dust.
According to AI media consulting data, the market scale of new tea in 2019 was 204.48 billion yuan. Although the scale affected by the epidemic was reduced in 2020, it still shows an expanding trend in the future. It is expected that the market scale will reach 279.593 billion yuan in 2021.
In the environment of consumption upgrading, the new tea grows savagely, the whole tea industry is pushed inward, and the brands of head and waist fight fiercely on the track.
This “fight” has come to the second growth curve of the brand. In order to break through the inner volume and anxiety, the head brand hangs up the identity card of investors.
Investment seems to be one of the means for new tea drinks to break through the inner volume. On the one hand, investment can supplement the category and broaden the ecology, on the other hand, the brand also strengthens its own anti risk ability.
What is the new tea?
On the evening of July 19, it was reported that both Yuanqi forest and Xi tea wanted to acquire Lele tea, a new tea brand. Both sides attached great importance to the channel value of Lele tea and gave a valuation of 4 billion yuan.
Nie Yunchen, the founder of Xi tea, responded to the news in the circle of friends: “the news is untrue. After being introduced by an intermediary, he did have contact for some time, but he has completely, completely and resolutely given up after deeply understanding the internal situation, business data and situation.”
Two days later, seesaw officially announced that it had completed the a + round of multi billion yuan financing, which was invested by Xi tea and followed by Hony Baifu, the old shareholder.
This is the first investment of Xi tea.
Some people in the venture capital circle said: “it has been rumored that Xi tea wants to make achievements in the venture capital field. In the past six months, it has contacted many tea and coffee chain brands in the market through intermediaries.”
In 2021, when the consumption track is popular, coffee is also favored by many investors. Seesaw’s round of financing is also very popular. Investors close to seesaw disclosed that many front-line capital are watching seesaw, and some have entered substantive negotiations. Xicha found seesaw, and the two sides quickly negotiated. There is not much a + round quota, which is only released to Xicha and old shareholders.
Details revealed that the investment was finalized in a late night phone call. Wu Xiaomei, founder and CEO of seesaw, even said in the interview: “up to now, the financing official has not met NEO (NIE Yunchen, founder of Xicha).”
In fact, tea loving and seesaw have been “friends” for a long time. According to Wu Xiaomei, the categories of tea and coffee are similar. Both sides have paid silent attention to each other for a long time. “They are also looking at each other’s products, brands and store designs.” both sides have even hired the same space and brand designers.
This premise determines the communication efficiency of both parties and decides to invest in seesaw. Nie Yunchen focuses on seesaw’s brand tone, product ability and space building ability.
Industry insiders believe that Xi tea also attaches importance to the coffee supply chain advantages accumulated by seesaw for many years. After the investment is completed, Xi tea will complete the cross-border of tea and coffee, and there is indeed an overlap of consumer groups between coffee and tea to a certain extent.
According to media reports, Xicha’s foreign investment needs the consent of the investors behind it, and Xicha may continue to invest in other high-quality targets in the future.
At present, from the two targets of Lele tea and seesaw, the investment direction of Xi tea seems to be aimed at the same trade track of coffee and tea.
Less than ten days after the investment of Xi tea official publicity, Lv Liang, the founder of tea Yan Yuese, forwarded a message of “Guo Yaya” in the circle of friends, and wrote: “I’m glad that our tea Yan invested Guo Yaya. This wipe of 0731 Changsha red, Changhong Changhong, Guo yaya, come on.”
It is understood that guoyaya is a milk tea brand focusing on fruit tea and dessert. It mainly focuses on fruit tea products in the current season. At present, 50 stores have been opened in Changsha, Xiangtan and Yueyang, of which 44 are in Changsha.
Like tea Yan Yuese, Guo Yaya has a strong local complex in Changsha.
Guo Yaya is the only brand invested by chayan Yuese at present. According to an insider of chayan Yuese, the company has no special investment department and no relevant plans for future investment.
Lv Liang also told the media that consumers and themselves like the founder and team of Guo Yaya, which is the only brand that chayan currently invests in. For the time being, he only considers investing in this brand, saying that his investment is because “his ideas are consistent and he simply likes it”.
But in the eyes of the outside world, this has released a signal. Zhu danpeng, an analyst of China’s food industry, said: “The purpose of this investment is to expand the scale and revenue, so as to improve the profits of the enterprise. At present, the new Chinese tea has entered a mature period and ushered in a new wave of resource integration node. At this node, horizontal and vertical investment, revenue mergers and acquisitions have begun to appear.”
Ambition lies in ecology
When a brand grows into a leading enterprise in its industry, its next step is not only to continue to cultivate the growth space, but also to broaden the border and develop the ecology. Tea, tea Yan Yuese and honey snow ice city are behind the investment field.
From the perspective of the main business of the invested enterprise, the concept of “supplementary ecology” has emerged.
First of all, from the analysis of Xi tea’s investment, Xi tea has long been eyeing the coffee category before investing in seesaw coffee. As a leader of the new tea brand, Xi tea has always defined itself as “inspired tea”. Therefore, Xi tea has spent a lot of energy on product matching and expanding categories. According to Xi tea 2020 annual report It shows that on average, Xi tea will launch a new product in 1.2 weeks. Xi tea continues to tap consumers’ preferences and develop more playing methods in the attributes of new products, such as seasonal restrictions, activity restrictions and other products. Or upgrade and iterate on the raw materials and tastes of old products.
Like tea, which pays attention to the ecological development of products, has a very sensitive sense of smell.
When Ruixing small blue cup coffee swept the city in 2019, Xi tea also built coffee categories in the product matrix and launched coffee Bobo ice, Zhizhi American style and other products. Then Xi tea joined hands with Arabica coffee and held many offline flash stores in Guangzhou, Shanghai and other places. After several attempts in coffee categories, Xi tea completely targeted the coffee track.
In July this year, just after completing the round D financing of US $500 million, Xicha turned to invest in seesaw.
After investing in the unicorn of the coffee track, Xi tea has filled the coffee category that has been tried all the time. From another point of view, Xi tea, which has been firmly in the top three of the industry, is also in urgent need of a new growth point to support the development of its brand. Since Naixue’s listing, there have been constant rumors about the listing of Xi tea. Before listing, the coffee track has been overweight, which has also injected a cardiotonic for Xi tea, breaking the single category of milk tea, which is more conducive to the performance of Xi tea’s future capital market.
The same thing to expand the ecology is the pleasant color of tea.
As a new tea brand of “city business card”, the product matrix of tea Yan Yue color is mostly based on fresh milk + tea, and there has been a lack of fresh fruit products built by other brands. The “Changsha second net red” tea brand guoyaya invested by tea Yan Yuese this time is the main fruit tea series.
Different from Xi tea and Naixue, although tea Yan Yue color has always been sought after by consumers, its stores are excessively concentrated in Changsha. Consumers even do not hesitate to pay a hundred yuan purchasing fee for a mouthful of tea. From this point of view, the sales of tea has been guaranteed after it has entered the country. At the end of last year, chayan went out of Changsha and came to Wuhan, the provincial capital next door. On the day of opening, she set a queuing record in the milk tea industry.
But the nationwide layout of Wuhan is only one step. If we want to expand and continuously ensure the competitiveness of tea color across the country, we urgently need the support of its product matrix. After investing in guoyaya, maybe chayan can go out of a national layout of Changsha brand and enter the national market with guoyaya’s products and chayan Yuese.
It seems that the investment ambition of honey snow ice city is not in the product ecology, but in the industrial supply chain ecology.
Honey snow ice city is famous for its low price. The price has always been its biggest competitive barrier. The front-end price is low and can only be found from the back-end links.
At present, xuewang investment has not officially announced its investment after its establishment, but it can be seen from the previous layout of honey snow ice city that it has been deeply cultivating the supply chain. At present, honey snow ice city has 22 enterprises, most of which are 100% owned. The industries involved are divided into agriculture, trade, supply chain, catering services, food sales, etc. Through the layout of upstream industries, on the one hand, it can not only ensure the supply of raw materials, but also bring great advantages to its cost through supporting production, transportation and other links.
The wave of investment in new tea brands has arrived. It seems that the second growth curve can empower the brand and feed back the enterprise through investment. From their own brand competition to investment together, the story of new tea has not been finished.
Author: Sihuo, Zhongshan, Qige; Source: cloud hunting network (ID: ilieyun), reprint has been authorized. Reprint authorization and media business cooperation: Amy (wechat: 13701559246);
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