---
title: "After Three Years, Uni-President Again Launches New Drinks Priced Near 20 Yuan, Including Coffee and Tea"
description: "After a three-year hiatus, Uni-President has launched several new beverages priced close to 20 yuan, debuting at 7-Eleven convenience stores in Shanghai and Hangzhou. The new products, including Manya coffee, Chuanqi tea, and allègre milk tea, are part of a high-end screw-cap aluminum can series, with coffee and tea priced at 19.8 yuan per bottle."
author: "New Distribution"
publisher: "New Distribution"
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published: "2019-04-13"
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# After Three Years, Uni-President Again Launches New Drinks Priced Near 20 Yuan, Including Coffee and Tea

> After a three-year hiatus, Uni-President has launched several new beverages priced close to 20 yuan, debuting at 7-Eleven convenience stores in Shanghai and Hangzhou. The new products, including Manya coffee, Chuanqi tea, and allègre milk tea, are part of a high-end screw-cap aluminum can series, with coffee and tea priced at 19.8 yuan per bottle.

After a three-year hiatus, Uni-President has again launched several new beverages priced close to 20 yuan, debuting at 7-Eleven convenience stores in Shanghai and Hangzhou. These new products were mentioned in Uni-President China's 2018 annual report: "**Manya coffee, Chuanqi tea, and allègre milk tea are all part of the screw-cap aluminum can series, positioned as high-end. According to product information, Manya coffee and Chuanqi tea are both priced at 19.8 yuan per bottle.**"

In 2016, Uni-President played two "sky-high beverage cards"—Tianmi Guangnian and Huanxing, priced at 19.9 yuan—but their momentum faded, and they did not become major successes. Why has Uni-President restarted its layout in this price range this time? And why is it only distributing in Shanghai and Hangzhou? The answer can be gleaned from remarks made by Uni-President Chairman Lo Chih-hsien at a recent joint institutional investor briefing.

**"Some of Uni-President's products can still maintain natural growth because there are many places in the mainland China market we haven't developed yet. Even if these products have been around for over a decade, as long as the market hasn't been exposed to or experienced them, they are new products."** Lo has his own understanding of the definition of new and old products.

As for products that the outside world understands as new—those newly developed and launched—there have also been representatives questioning "low channel visibility." Does Uni-President need to review its channel strategy for new products, such as the products mentioned here being sold only in Shanghai and Hangzhou?

Lo's answer was direct: **"If I don't sell them there, of course you won't see them!"** Because sales of new products are not included in KPI assessments, there is no need to cast a wide net; it is sufficient to continuously improve within a small scope. "New products are not expected to be bought by most people. Uni-President already has plenty of products with high visibility; this market is already too crowded."

"There are two types of people who become big in business: those who don't buy and those who don't sell. We move from both extremes toward the middle," Lo said. **"So it's normal for consumers not to be able to buy my products, because at certain points in time and strategic moments, I deliberately don't sell. Because I don't sell, I am big, and I set the price—take it or leave it!"**

Lo believes that "being yourself" is the most valuable experience and lesson Uni-President has learned in the mainland market over the past 25 years. Uni-President wants to be a different company, and the group's financial capabilities support this path. "This path is somewhat lonely, but I believe the returns will be equally brilliant."

**As one of the few innovative companies in the FMCG sector, why does Uni-President continue to focus on the coffee and tea beverage market?**

**1. About the coffee market**

According to a China coffee report released by market research firm Mintel in October 2018, total retail sales in China's coffee market were approximately 16.304 billion yuan in 2018, **and are expected to reach 29.159 billion yuan by 2023, with a compound annual growth rate (CAGR) of 12.3%.**

Compared with the rapid growth of China's coffee market, per capita annual coffee consumption in China is only 0.03 kg, far below the world average of 1.25 kg, and even significantly lower than Japan in East Asia. The Chinese market has substantial room for development.

In recent years, coffee has been busy. Nestlé acquired Starbucks' retail coffee business, Coca-Cola acquired Costa, and various capitals have entered China's coffee market. Boutique coffee brand "San顿半" completed a Pre-A round of financing in the tens of millions, and Luckin Coffee completed a $200 million Series B financing... Internet coffee brands are positioning in first-tier city business districts, competing with chain coffee giant Starbucks, and there is a trend toward a "three-legged" situation of "net green, net blue, net orange." The deep impression of international chain coffee brands and the education of the public by internet new retail coffee have strengthened consumer understanding of coffee, with the user base and consumption volume continuously expanding.

Currently, ready-to-drink coffee has a lower unit price than freshly ground coffee and is more convenient than instant coffee, so it still holds a certain market.

**2. About the tea beverage market**

According to Euromonitor data, in 2017, China's tea beverage market had total retail sales of 77.676 billion yuan and total retail volume of 14.423 billion liters. From a time trend perspective, the prosperity of China's tea beverage market began to decline around 2013-2014, with total market sales showing a downward trend. **Around 2014, consumption in China's tea beverage market underwent a structural shift, transitioning from quantity to quality.**

From the perspective of sales changes, the rapid growth in retail sales from 2003 to 2010 was mainly driven by rapid growth in retail volume, with retail prices basically unchanged. Since 2010, retail prices have been rising, and retail volume and retail sales have changed in the same direction. From 2010 to 2014, both volume and price rose together, driving the increase in retail sales. After 2014, although retail prices continued to rise, retail volume declined faster, and overall retail sales showed a downward trend.

▲ Retail sales and volume of China's tea beverage market

This change can be summarized as follows: from around 2003 to 2013, the rapid growth in retail sales of China's tea beverage market was mainly driven by growth in retail volume. Since 2014, retail volume growth has slowed or even begun to decline, while retail prices have continued to rise, driving overall market development. This also reflects that around 2014, consumption in China's tea beverage market underwent a structural shift, transitioning from quantity to quality.

As public health awareness increases, consumer preference for high-sugar, high-calorie beverages continues to decline. China's FMCG industry has also launched a low-sugar revolution, with brands following the low-sugar trend and introducing low-sugar or sugar-free products. For example, Coca-Cola's new Chunshecha last year and Wahaha's dark tea new product are representatives of low-sugar tea. Nongfu Spring's earlier sugar-free tea, Dongfang Shu Ye, has also started to gain traction in the past two years. It is clear that **China's low-sugar and sugar-free tea beverage market is becoming the next trend.**

In 2017, domestic ready-to-drink tea beverage sales accounted for about 20% of the overall soft drink market, making it one of the categories with the highest penetration in the ready-to-drink market. A new round of war in the tea beverage market has already been initiated by new-style tea drinks. Whether this tea beverage upgrade war can rewrite the traditional tea beverage market landscape remains to be seen.

Compiled from the internet

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