Nayuki drops huge hint about the future direction of beverages with its one billion RMB investments in bottled tea

On 26 April, Sina Finance and Economics’ exclusive report highlighted that Nayuki’s tea is in urgent need of acquiring an RTD (ready to drink) production line. Due to the sharp increase in the sale of ready-to-drink products with an expected investment scale of 500 million RMB ($75.62 million) to 1 billion RMB ($152 million), the potential of this trendy industry cannot be underestimated.

Nayuki’s development of the bottled tea market is not only driven by the domestic market trend, but also the consideration of product development.

According to the “Analysis on the Current Market Scale and Market Segments of China’s Soft Drink Industry in 2021” released by the prospective research institute, the domestic soft drink market has become one of the world’s largest soft drink markets since its development over 40 years ago, with a market scale of about 600 billion RMB ($91.46 billion). At the same time, since bottled tea does not have high requirements for time and space like existing tea drinks, it can not only reduce labor costs to a great extent but also scrap large-scale production.

The performance of Nayuki’s bottled tea isn’t a sure thing by any means, however, with the company’s advanced preparation from an early stage, there is still a potential market to tap into. With the wide offline distribution of an array of goods from as early as February this year, to the cooperation with many key stores such as 711, Jusco, and the leading e-commerce brand Fresh Hema, Nayuki already seems well prepared, withholding a belief that beverage companies don’t have a lot to go on yet beyond turning into offline merchandising.

According to Nayuki’s tea flagship store on T-mall, they have launched a Bubble Water Series, Sugar-Free 0 Fat Series, and Low Sugar Fruit Juice Series with a price range between 5 and 6 RMB ($0.76 and $0.91). As Nayuki continuously paves the way, the new wave in the bottled beverage industry is yet to come.

Furthermore, customers will always want a food company that offers a good and continuous safety guarantee. As such, the transition of Nayuki from beverage buyer to manufacturer might call on more companies to embrace this new beverage business model focusing on bottled tea production in favour of setting up a food safety brand image. Although there are no practical revenue outcomes, the market trend and Nayuki’s agile movement demonstrate a reason for their customers to be cautiously optimistic. 


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