Behind the successful listing of Tea Baidao, will the new tea drink market become more and more hot?
After three years, the "second share of new tea drinks" is coming.
On April 23, 2024, Sichuan Baicha Baidao Industrial Co., Ltd., the parent company of the new tea beverage brand "Tea Baidao", was officially listed on the main board of the Hong Kong Stock Exchange with the stock code 2555.HK. HK。
Looking back on the listing of Chabaidao, as early as August last year, Chabaidao submitted a listing application to the Hong Kong stock market; in December of the same year, the official website of the China Securities Regulatory Commission disclosed the filing notice of the overseas issuance and listing of Chabaidao and the "full circulation" of domestic unlisted shares; in February this year, the prospectus was updated, and in March, Chabaidao passed the listing hearing of the Hong Kong Stock Exchange.
It is understood that Chabaidao raised nearly 2.6 billion Hong Kong dollars, which is the largest IPO raised by Hong Kong stocks this year. This is also the second new tea drink brand to be successfully launched after Nai Xue's tea.
The annual sales volume is more than 1 billion cups, and the first cup is sold to the student party
In 2008, the first tea Baidao was born in Chengdu. At that time, the site of Tea Baidao was located near Wenjiang No. 2 Middle School in Chengdu, and the "students" bought its first cup of milk tea.
From the perspective of products, the product portfolio of Chabaidao includes a variety of classic teas, seasonal teas and regional teas. The best-selling classic teas include poplar nectar, soy milk and jade unicorn, signature taro ball milk tea, jasmine milk green and watermelon bobo.
The five classic products listed in the tea Baidao prospectus account for about 40% of the total number of SKUs in tea Baidao stores, and a total of 350 million cups will be sold in 2023, of which jasmine milk green "sells 110 million cups a year" and Yangzhi manna "has a retail sales of nearly 1.8 billion yuan a year". Seasonal products such as "Black Lacquer" and "Green Jasmine" and regional products such as "Yellow Peel and Lemon" have maintained a high-frequency new rhythm.
Source: Tea Baidao Prospectus
After 16 years, Tea Baidao has rushed into the top three of the new tea drinking echelon. According to Frost & Sullivan data, in terms of retail sales in 2023, Chabaidao ranks third in China's freshly made tea shop market, with a market share of 6.8%. In terms of store revenue performance, the prospectus of Chabaidao shows that in 2023, Chabaidao will sell a total of 1.016 billion cups of milk tea, and the total retail sales of the store will be 16.9 billion yuan.
Who put the tea on the market?
As of April 5, 2024, Chabaidao has a total of 8,016 stores in China, covering 31 provinces and cities across the country, achieving full coverage of all provinces and tier-level cities in China. It is worth mentioning that in just two years, nearly 3,000 new stores have been added to Chabaidao.
The road to the listing of tea Baidao is due to the contribution of "franchisees". On the basis of chain operation, Chabaidao focuses on the small shop model and takeaway business. According to the prospectus of Tea Baidao, the revenue sources of Tea Baidao include the sale of goods and equipment, the sale of dairy products, tea and fruits and other tea materials and ingredients to franchise stores, as well as packaging materials and store equipment, royalties and franchise fee income, etc.
The future business field of "New Tea Drink Second Share".
In addition, Chabaidao is also constantly exploring the boundaries of its business. In January this year, Chabaidao opened its first directly-operated coffee shop in Chengdu, China, under the "Coffee Ash" brand, which mainly supplies coffee, bagels, burgers and other baked goods to consumers.
Source: "Coffree Coffee Gray" public account
Regarding "Tea Baidao has been listed in Hong Kong, but Tea Baidao has not opened a store in Hong Kong", on April 15, Wang Hongxue, co-founder, executive director and general manager of Tea Baidao, revealed at a press conference that Tea Baidao has been selected in Hong Kong, China.
In addition to the Chinese market, Chabaidao is also accelerating the pace of expansion in overseas markets. In January this year, the first overseas store of Chabaidao landed in Gangnam, Seoul, South Korea. Wang Hongxue said that the overseas market has "great potential", and he said that "in the future, we will give priority to the layout of the Southeast Asian market".
The first overseas store of Chamomochi
With Nayuki's tea in the front and tea in the back, is the launch of new tea drinks an opportunity or a challenge?
Zhu Danpeng, vice president of the Guangdong Provincial Food Safety and Security Promotion Association and food industry analyst, told Consumer Reports: "The listing of Tea Baidao is different from the listing of Rui Nai Xue, and Nai Xue's tea was 'listed with illness' at that time, so the performance was not good. Seeking to go public in the case of profit loss, it is difficult to recognize the primary market and the secondary market. ”
He also said: "There are more than 8,000 tea Baidao, the overall profit is considerable, and the integrity of the industrial chain has also been built relatively perfectly." In this case, as the second step of the new Chinese milk tea, it may be sought after by the capital market, although there is a certain pressure on the macro economy, but in the capital market, we are still relatively optimistic about the listing of tea Baidao."
新茶饮下半场,集体角逐IPO?
The new tea drink has faded away the sense of age of traditional tea brewing, and is entering the hearts of young consumers in a new way of expression.
Whether it is a busy city or a narrow alley, what we can see is that new tea stores and brands are born every day. According to data disclosed by iiMedia Consulting, the market size of new tea drinks in mainland China will be 333.38 billion in 2023 and is expected to reach 374.93 billion by 2025.
The new tea brand with "ambition" is far more than Nayuki's tea and tea Baidao.
At the beginning of 2024, Shanghai Auntie, Tea Baidao, Mixue Bingcheng, and Gu Ming have submitted listing applications to the Hong Kong Stock Exchange; Bawang Chaji has also recently reported that it may go public in the United States, and is expected to raise 2-300 million US dollars, and if the listing is successful, the valuation can reach 3 billion;
In fact, the new tea brands are planning to go public for similar purposes, including using the capital market to solve the financial problems in store expansion.
However, the success of the listing does not mean "lying flat", nor is it once and for all, but a new starting point. In the new tea market, the most direct bridge between brands and consumers is still products. "Consumer Reports" believes that through innovation and optimization of the product matrix, flexible adaptation to market changes, attracting and retaining consumers, is the eternal battlefield of the new tea market.