China Food

When new tea falls in love with playing capital


new tea business becomes a capital game?

At the time when bytehop established a food and beverage team and was eager to try the tea market, its new tea brand Ningji, which invested heavily in the tea industry, was not idle. Just recently, the news about the wholly-owned investment in coffee brand RUU by Ningji came out.
In fact, it’s not just Ning Ji who has been invested in cross-border investment. Xicha may be one of the first enterprises to open tea brands for investment. In the second half of 2021, Xi tea became the “gold owner” of the consumption track frequently. In July, it participated in the investment in the coffee brand seesaw, and then in August, it took control of the competing Wangning lemon tea in the lemon season; After that, they successively invested in wild plant yeplant, Hetao peach, wat cocktail and other consumer brands. In November, they also controlled yecui mountain, the main molecular fruit drink.
Snow city followed. On September 13, 2021, Snow King Investment Co., Ltd. was established in snow city. Then one month later, he invested in huicha, a new tea brand in Guangdong. In 2022, Michelle ice city will continue to expand its investment territory. On April 24, 2022, industrial and commercial changes took place in the “chicken packing” of the chain meal drink, which mainly focuses on Korean fried chicken and various Korean meals, and xuewang Investment Co., Ltd. became one of its shareholders.
Naixue’s tea doesn’t want to fall behind. In April, 2022, Naixue’s tea set up a subsidiary, Shenzhen Meihao Youli Investment Co., Ltd., and officially began to set foot in the venture capital circle. In addition, Guming milk tea also participated in the round B financing for the adoption of a cow by a new dairy brand in December last year.
So far, almost all the leading enterprises of the new tea drinking track have opened their investment models.

From being invested to making investment

From 2020 to 2021, it was the two years that the new tea circuit was the most sought after by capital. During this period, new tea brands such as Naixue’s tea, Xi tea and Ningji have obtained huge financing.
According to public information, Naixue’s tea will be financed for five rounds before it lands on the Hong Kong Stock Exchange on June 30, 2021. In 2020, there will be two rounds of financing, one of which will be nearly US $100million led by Shenzhen Venture Capital. In January, 2021, Naixue’s tea completed the round C financing of more than US $100 million led by taimeng investment group.
Similarly, Xi Cha achieved a lot in the capital market in 2021. Statistics show that since its establishment, Xi tea has also had more than five rounds of financing. Perhaps inspired by the successful listing of Naixue’s tea, on July 13, 2021, Xicha obtained the round D financing jointly invested by Sequoia Capital China, Hillhouse capital, Tencent investment, Temasek Temasek, l catterton, black ant capital, sunrise Oriental capital and many other top institutions. The amount of this round of financing reached us $500million, and the valuation of Xicha after this round of investment reached RMB 60billion.
As a brand born at the end of 2020, Ningji has obtained two rounds of financing in 2021. In July 2021, Ning Ji announced the news of tens of millions of round a financing obtained from byte jump and other investments. On January 21, 2022, Ning Ji announced the financing news again, and obtained hundreds of millions of yuan of a+ round financing invested by old shareholders such as byte hop.
With the help of capital, the period from 2020 to 2021 will also be the two years when the new tea industry will run blindfolded. Including Naixue’s tea, Xi tea, Ningji, Qifen sweet and other tea shops, they are constantly expanding their stores nationwide.
Take Qifen sweet, which was reported by the new consumption of moose, as an example. Previously, it had been deeply involved in the Jiangsu, Zhejiang and Shanghai markets until it opened its first store in Beijing in August 2021, and then prepared to open 20 stores in Beijing within three months. At present, the official website shows that by November 2021, Qifen sweet has opened more than 1300 stores in Shanghai, Jiangsu, Zhejiang, Anhui, Shandong, Guangdong, Hubei, Shaanxi, Hebei, Heilongjiang, Jiangxi, Los Angeles, etc. In March, 2021, Qifen sweet just exceeded 1000. This means that Qifen sweet has opened more than 300 stores in just 8 months.
While Ningji is more radical. Through direct marketing and franchising, it has opened more than 400 stores in just 10 months in 2021.
At the same time, tea brands such as Xi tea, Naixue tea and Guming milk tea are also expanding simultaneously. From 2018 to 2020, the number of stores of Xi tea was 163, 390 and 695 respectively. According to the new consumption of moose, by the end of 2021, Xicha has more than 800 Direct stores in China. According to Naixue’s tea disclosure, the number of stores of Naixue’s tea from 2018 to 2021 was 188, 327, 491 and 817 respectively. In 2021, Guming milk tea broke through 6000 stores.
Most of these milk tea shops are densely distributed in various shopping centers in the city, especially in the first tier cities, and the competition has become white hot.
The situation has changed significantly in the second half of 2021. In particular, as the shares of new consumption listed enterprises such as Naixue’s tea and perfect diary plummeted, investment institutions began to tighten their investment in new consumption tracks, and the new tea industry began to cool down.
In particular, the disclosure of financial data of some listed companies has shaken the confidence of investors in the new consumption track. Take Naixue’s tea as an example. As the leading enterprise of the new tea drinking track and the first share of new tea drinking, Naixue’s tea added 326 stores in 2021, with a revenue of 4.296 billion yuan, but a loss of 145.3 million yuan.
In the face of fierce competition, the unfavorable situation of expanding stores without increasing profits and the possibility of a sharp decline in valuation, the demand of players of the current tea drinking track will begin to break through in the second half of 2021. However, the means of this breakthrough is not technological innovation and product iteration, but investment.
The

Rebuild the online red brand

The logic that many new tea brands, such as Xi Cha, Naixue’s tea and Ning Ji, have successively set foot in the investment circle is that although the profits of the tea industry are not high and may even suffer losses, they can continue to gain cash flow by opening offline stores. With the popularity of the investment circle for the tea industry in the past, most of them have obtained high financing, and now there are a lot of funds lying on their accounts.
Now, under the background of uncertainty caused by the epidemic, the expansion speed of stores is bound to slow down. In this case, it is a way to revitalize the funds by diversifying the business investment layout of the funds lying on the books.
Another consideration is to find a second growth curve for enterprises. Because most new tea brands have encountered a growth ceiling after two years of rapid growth.
Whether it is like tea, Naixue’s tea, or the lemon season, when they first appeared in the vision of consumers, they all have a strong online red drink attribute. Especially in the two years when the new tea brands were most sought after by capital, in fact, they were also the two years when the new tea brands were most sought after by consumers. When opening new stores in new cities, queuing has become the most commonly used marketing method for these new tea brands.
However, by the second half of 2021, the queuing phenomenon of these tea shops will be greatly reduced. In order to attract young people to consume, since this year, new tea brands such as Xi tea and Naixue tea have successively used the “price reduction” method.
What if the price cut doesn’t bring back young people? The answer is to create several more online black tea brands.
For example, in addition to investing in new tea brands such as yecui mountain, Wangning lemon tea, and wutao peach, Xixiao tea, a sub brand, was launched in the southern market as early as 2020. The product price is lower than that of Xicha, with a range of 8 to 16 yuan. It is the hope that it can cover more consumer groups.
Returning to the wholly-owned coffee brand RUU of Ningji, it is not so much investment as direct incubation. The new consumption of moose is known through enterprise investigation that RUU brand is subordinate to Hunan Honglan wanci Technology Co., Ltd. and was established on January 18, 2022. Hunan Ningqi Catering Management Co., Ltd. is a 100% wholly-owned shareholder. The earliest date of shareholding is its establishment date. The former is a subsidiary of Hunan SANFA Catering Management Co., Ltd., that is, the operating company of Ningji brand. In this regard, the new consumption of moose confirmed with the relevant person in charge of Ningji whether it was incubated within the team, but the other party did not respond before publishing.
Not only in equity institutions, the two point to the same team. RUU even played the same way in terms of products and marketing as in the early days of the founding of Ningji. In terms of products, RUU not only focuses on special coffee products, but also sells 6 non coffee drinks such as lemon tea, hand-made tea and fresh milk. In terms of marketing, it is also the Internet game of attracting customers through extreme price promotion.
By incubating or directly holding potential new brands, and then combining their own industry accumulation in supply chain, brand marketing, store location and other aspects, rebuilding several online popular brands can not only revitalize the book capital, but also realize the layout of business diversification and improve the enterprise valuation. This may be the real logic for new tea brands to make investment in succession.
作者:拓;来源:驼鹿新消费(ID:tuolu360),转载已获得授权。
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