Today's leading tea brands have begun to "return to farmland" to deploy agriculture.
Recently, the classic product "Taro Mud Bobo" series of Hey Tea has returned. This "comeback" is naturally innovative-the raw materials include betel nut taro from the "Hey Tea Co-construction Planting Base". Betel nut taro is a kind of taro. It has a rough outer skin and a betel nut pattern on the inside. It has the characteristics of loose, thin, waxy, sweet and suitable for processing into taro puree.
▲ Picture from: Hi Tea
"Hey Tea Co-construction Planting Base" is located in Guangxi, covering an area of hundreds of acres, and is adjacent to two wetland parks. As the name suggests, it was built by HiTea and its suppliers. According to the official statement of Hey Tea, this move is "to reach an agreement with the supplier to jointly build a planting base, reverse custom taro mud, and influence upstream raw material planting with the high standards of new tea."
In addition to hi tea, self-construction or joint construction of planting bases is becoming more and more frequent in the tea industry.
Naxue’s signature product "Domineering Strawberry" series, fresh fruits come from Naxue’s self-built strawberry base in Yunnan and other places. Another example is Naxue’s Alishan Chulu and other tea products, whose raw materials and production techniques are all sold out.
▲ Picture from: Nai Xue
Chayanyuese, rooted in Changsha, established Xiangming Biotechnology Co., Ltd. on September 2 this year. It is wholly-owned by Hunan Chayue Cultural Industry Development Group Co., Ltd., and its business scope covers agricultural product research and development and primary agricultural product acquisition.
The raw material is the standard by which new tea drinks are called "new" tea drinks. According to Sullivan's "White Paper on the Development of China's New Tea Drinking Industry", "the use of natural raw materials, high-quality tea extraction, and the addition of fresh fruits or milk and other flavors" is a major feature of the new tea era.
▲ Picture from: "White Paper on the Development of China's New Tea Drinking Industry"
When it is difficult for new tea drinks to make subversive innovations in milk tea types, it is inevitable to pay more attention to the refinement of raw materials. This refinement is reflected in two aspects.
On the one hand, new tea drinks have focused on niche fruits such as oil oranges and yellow peels, re-developing research and marketing, and packaging niche fruits into Internet celebrity fruits. However, the surge in market demand has also put pressure on the supply of brands, leading to strong fluctuations in raw material prices and temporary shortages in stores.
▲ Youkan. Picture from: Nai Xue
Therefore, on the other hand, the new tea brand hopes to establish supply chain barriers through self-built bases to maintain the uniqueness and stability of the products from the source.
And Michelle Ice City, which sings "You love me, I love you", is the representative of traditional chain tea brands in the new tea era. It also began to deploy agriculture, but the purpose was different. According to the company's inquiry, on August 31 this year, Chongqing Xuewang Agriculture Co., Ltd. was established, wholly-owned by Michelle Ice City Co., Ltd. In addition, Michelle Ice City directly connects with the orchards and farmers in various lemon bases in Anyue, Sichuan, to ensure the high quality and high quantity of lemon products, which is different from the previous industrial model of agricultural material companies as intermediaries.
▲ Picture from: Michelle Ice City
The selling point of Michelle Ice City can be summarized by the term "price-performance ratio". If you want to continue to maintain cost-effectiveness, Michelle Ice City is bound to build its own supply chain and reduce costs through self-built factories, warehousing and logistics centers, etc. In this way, Michelle Ice City can not only achieve small profits but quick turnover on the consumer side, but also lower the threshold for joining and achieve rapid expansion. In fact, the latter is the main wealth code of Michelle Ice City. According to Jiuqian Consulting , 40% of Michelle’s current profit comes from providing raw materials to franchisees.
▲ Picture from: Qichacha
The tea war is still in full swing, driving the continuous evolution of new and old tea in product research and development, raw material development, and supply chain building. A certain trend is that the construction of the supply chain is exposed. Although different brands have specific differences in business models, their common appeal is to reduce costs and improve quality control. This is a long investment process, but it is also a guarantee to maintain a longer life cycle.
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