Our reporter Wang Jun
Less than three months after becoming a shareholder of the coffee brand AOKKA Coffee, Nayuki, the "first share of new tea drinks", "drinks" coffee again.
Recently, the cutting-edge coffee chain brand Monster Sleepy announced that it has completed multi-million-dollar angel round financing, and the investor is Naixue’s tea-owned fund — Good Own Power.
"Coffee, like new tea drinks, is a fast-moving 'twin star category', a gold category most favored by the new generation, most topical, social, and consumption frequency is constantly increasing." Guangdong Provincial Food Safety Promotion Association Vice President Chairman Zhu Danpeng told the "Securities Daily" reporter that from the core needs of the new generation, it can be seen that the layout of tea brands on the coffee track is in line with market logic, and coffee, a fast-growing track, continues to attract new entrants.
Investing in Coffee Brands Again
Monster sleepy was established in May 2022. It is a new chain brand of fresh fruit coffee under Shenzhen Xingfukai Brand Management Co., Ltd. The overall strategic positioning of the brand is younger, focusing on "the lifestyle pursued by modern young people".
It is reported that Monster is Sleepy is mainly a takeaway coffee shop, which is opened in shopping malls, office buildings and young communities.
At present, nearly 10 stores have been opened, and this round of financing will be used for new store expansion and marketing promotion.
Prior to this, Nayuki’s Tea had just invested in AOKKA Coffee and owned about 21.4% of its shares.
Since its establishment 9 years ago, AOKKA has been deploying online. With Nayuki’s tea investment, in September this year, AOKKA Coffee opened its first offline store in the first Nayuki Life Store.
At that time, Nayuki’s Tea said in an interview with the media that investing in AOKKA Coffee was the first step for Nayuki’s Tea to invest in the coffee track.
"In the future, Nayuki's tea may continue to make efforts in the coffee track." Some industry insiders told the reporter of "Securities Daily". There are also considerations to increase gross profit margins.
Nayuki’s tea has previously explained to the outside world, “From the perspective of data analysis, our consumers’ demands for tea and coffee overlap by 80%, that is, 80% of our customers drink both. Tea and coffee."
Cross-border players have poured in
Since the beginning of this year, tea drink brands such as Shuyisao Xiancao, 7fentian, CoCo, and Michelle Ice City have launched their own coffee products and brands.
In August this year, Cha Yan Yue Se's newly launched coffee brand "Yuan Yang Coffee" opened the first batch of 5 stores, officially entering the coffee market.
According to data from iiMedia Consulting, in 2021, the size of China's coffee market will be about 381.7 billion yuan, and the number of consumers will exceed 300 million.
At the same time, the size of China's coffee market is expected to grow at a growth rate of 27.2%, much higher than the global average growth rate of 2%. It is estimated that the size of the Chinese market will reach 1 trillion yuan in 2025.
In this context, more and more cross-border players have entered the game.
According to the Tianyancha App, from 2020 to 2022, the number of companies that have cross-border coffee tracks has increased significantly, from 2 in 2020 to more than 10 in 2022.
Cross-border companies come from all walks of life. In addition to catering companies, they include large companies such as China Railway and China Post. Their participation has jointly boosted the popularity of the coffee track.
According to the Tianyancha App, as of mid-November, the number of coffee brand financing in 2022 has reached 13, accounting for nearly 80% of the total financing of the entire coffee track.
"The development prospect of the coffee track is good and fast, and major brands are increasing their expansion and sinking efforts, trying to share the 'profit' in this track." Xu Xiongjun, founder of Jiude Positioning Consulting Management Co., Ltd., told "Securities A reporter from the Daily said that the Chinese coffee market has a large room for growth, and coffee is also becoming a choice for other brands seeking to cross-border and seek the second growth curve.
(Securities Daily)