New tea drinks aim at the supply chain

Often only brands with sufficient ammunition have a better chance to deploy in advance, which will undoubtedly accelerate the widening of the competition gap between brands.

New tea brands are getting together to build their own supply chains.

Recently, Michelle Ice City's intelligent production, processing and export base in Chengdu has officially opened. The base has a total investment of 5 billion yuan, including intelligent manufacturing, deep processing of green products, research and development and other purposes. In addition, it is equipped with room temperature and low temperature three-dimensional warehouses, which are said to be able to meet the needs of more than 6,000 stores to strengthen the ability of cross-regional operations.

Also recently, Guming's raw material processing base in Zhuji, Zhejiang Province has entered the construction stage. The base costs 1 billion yuan to build and is expected to be put into operation in April 2024. According to Guming, after the project is completed, it will provide tea, fruit and other light food and drink raw materials for Gumingcha, with an estimated output value of 2.9 billion yuan.

Earlier, part of the financing amount was used for upstream construction such as intelligent production and processing bases and supply chains.

In fact, the supply chain competition for new tea drinks started as early as 3 years ago.

Many tea brands, including Michelle Ice City and Cha Yan Yue Se, have invested heavily in agricultural product procurement and research and development. For example, HEYTEA has repeatedly increased its investment in its own tea gardens, and Nayuki’s tea has contracted strawberry gardens in Yunnan. The strawberries produced have already been used in stores, and Michelle Ice City is also increasing its own non-dairy creamer production line.

In the field of catering and food and beverage, the cost of raw materials and supply chain services generally accounts for 30%-40% of terminal sales.

The vigorous development of the new tea industry in the past few years. However, compared with these external suppliers, the self-built supply chain system is considered to improve efficiency and better control costs.

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