Mixue Ice Cream & Tea (Chinese：蜜雪冰城) does not rely on selling milk tea to make a profit.
Mixue Ice Cream & Tea pre-disclosed its A-share prospectus to be listed on the main board of the Shenzhen Stock Exchange on the evening of September 22.
Mixue Ice Cream & Tea is a ready-made tea brand with the largest number of stores in China. As of the first quarter of this year, there are 21,619 stores, of which 21,582 are franchised stores. The reason why Mixue Ice Cream & Tea can expand at a high speed, in large part due to the brand positioning affordable, that is, products are mostly priced between CNY 6-8, much lower than other tea brands, pulling up the purchase frequency, but also conducive to quickly capturing the lower consumption level of the sinking market.
Mixue Ice Cream & Tea makes money not by selling milk tea, but by selling ingredients, packaging materials, equipment and earning fees from franchisees. Stores sold CNY 20 billion (USD 2.8 billion) a year, with annual revenue of CNY 10.3 billion. In 2021, Mixue Ice Cream & Tea achieved revenue of CNY 10.35 billion, of which, selling drinks thick syrup, jam, tea and other ingredients to franchisees. reached CNY 7.23 billion, accounting for 70%; selling packaging materials to franchisees, reaching CNY 1.78 billion, accounting for 17%; selling equipment and operating supplies, reaching CNY 1.05 billion, accounting for about 10%; franchise management fees of nearly CNY 200 million, accounting for about 2%.
And, unlike some new consumer brands, Mixue Ice Cream & Tea relies on store coverage to influence consumers and does not need to spend too much money on marketing and advertising. Even though its theme song resounded across the Internet in 2021, its advertising and brand building costs combined were only CNY 43 million.
In the past two years, tea drink brands competed with each other severely, and many brands have opened up a second battlefield into coffee, ice cream, bottled drinks, etc., Mixue Ice Cream & Tea is no exception. Its freshly ground coffee chain brand "Lucky Coffee", almost exactly copies the Mixue Ice Cream & Tea play: low price, sinking, franchise. The prospectus shows that the average price of Lucky Coffee's products is CNY 8. This is almost the lowest-priced coffee brand on the market, and the store menu shows that its cheapest product is the 5-yuan freshly ground American-style coffee.
Coffee to the countryside, tea drinks to the global market, is the expansion of the new drink battlefield, but on the main runway, Mixue Ice Cream & Tea still needs a new story.