Source | Zhengdian Consumer Zhengdian Consumer: Facing intense domestic market competition and the impact of freshly made tea drinks, Xiangpiaopiao Food Co., Ltd. (hereinafter "Xiangpiaopiao"), a national milk tea brand, is not only entering the offline store business but also accelerating its "going global" strategy. Unlike previous simple trade-based exports, Xiangpiaopiao now plans to invest real money to build its first overseas factory. In other words, Xiangpiaopiao will transform from "cups circling the earth" to "industry circling the earth." As the first step in overseas industrial layout, Xiangpiaopiao has set its sights on Thailand, planning to make Thailand a production base and export hub for cup-based beverages, with the target market covering Cambodia, Laos, Myanmar, Vietnam, and the broader ASEAN market. Planned Investment of 268 Million Yuan On the evening of December 23, Xiangpiaopiao announced that its wholly-owned subsidiary, Xiangpiaopiao Sichuan Food Co., Ltd. (hereinafter "Xiangpiaopiao Sichuan"), plans to use its own funds to contribute 1 million Singapore dollars (approximately RMB 5.4663 million) to establish a Singapore subsidiary, and then Xiangpiaopiao Sichuan and the Singapore subsidiary will each contribute 500,000 US dollars (approximately RMB 3.525 million) and 4.5 million US dollars (approximately RMB 31.725 million) respectively, holding 10% and 90% stakes, to establish a Thai subsidiary, ultimately investing in the construction of a liquid ready-to-drink beverage production base in Thailand. Image source: Xiangpiaopiao announcement (screenshot) It is worth noting that the total estimated investment for this project is 38 million US dollars (approximately RMB 268 million, with the actual investment amount subject to approval by relevant authorities in China, Thailand, and Singapore). The investment will mainly be used for establishing and operating overseas companies, purchasing land, factory construction, equipment procurement, and related matters. According to the announcement, the base will mainly produce liquid cup-shaped beverage products such as ready-to-drink fruit tea. The expected start date is May 1, 2026, with a construction period of 12 months, and the expected investment return rate is 13% (internal rate of return). Xiangpiaopiao stated in the announcement: "This project has completed preliminary due diligence and related work, and will proceed with ODI approval procedures." Regarding the feasibility analysis of the project, Xiangpiaopiao stated in the announcement that the main target markets are Thailand and neighboring countries such as Cambodia, Laos, Myanmar, and Vietnam. The ready-to-drink beverage markets in these target markets show diversity in consumer demand, purchasing behavior, and purchasing power. The company will position its cup-based fruit tea products in the target market as "premium fruit tea for a healthy lifestyle" or "premium fruit tea for the health-conscious new generation," combining refreshing fruit flavors with the benefits of tea, using high-quality ingredients, and adopting a premium 400ml cup format that differs from the mass-market bottled format. Thailand's ready-to-drink beverage industry is experiencing sustained growth, driven by multiple factors, including increasing consumer health awareness, demand for convenience, and the growing preference of young consumers for premium healthy beverages. The company's products will be differentiated through unique exotic tropical flavors, 25% real fruit juice content, low sugar and zero fat, and premium transparent cup packaging, distinguishing them from existing competitors that mainly rely on bottled packaging. In other words, Xiangpiaopiao has not only completed preliminary preparations and research for the Thai factory but has also planned the product categories and packaging formats accordingly. However, this investment still requires approval procedures for outbound investment from domestic authorities, and there is a certain degree of uncertainty. Anchoring New Growth: Ready-to-Drink and Export With the rise of freshly made tea drinks, Xiangpiaopiao's traditional brewing business has been greatly impacted. Image source: Xiangpiaopiao 2025 semi-annual report (screenshot) In the first half of this year, Xiangpiaopiao's traditional pillar brewing business continued to decline, and its share of total revenue was for the first time surpassed by the ready-to-drink category, making the ready-to-drink business the new cornerstone of the company. More importantly, considering market conditions, the future of the ready-to-drink business undoubtedly has more "imagination space" than brewing. After all, since Xiangpiaopiao went public, it has firmly held the number one market share in the brewing milk tea category, so voices saying it has "hit the ceiling" have never ceased. Therefore, Xiangpiaopiao first launched its ready-to-drink product "Lanfangyuan" in 2017; in 2018, it launched the MECO brand, becoming the pioneer of "cup fruit tea"; in May 2023, Xiangpiaopiao launched Lanfangyuan bottled Hong Kong-style lemon tea... Image source: Xiangpiaopiao 2025 semi-annual report (screenshot) After several years of cultivation, Xiangpiaopiao's ready-to-drink business has indeed become the largest source of revenue. The share of this business segment in total revenue increased from 26% in 2023 to 58.27% in the first half of this year. In the first three quarters of this year, Xiangpiaopiao's brewing category entered the peak season, with sales revenue of 822 million yuan, while ready-to-drink revenue was 833 million yuan, continuing to be the company's performance pillar. At the channel level, Xiangpiaopiao's performance in overseas markets is commendable. Although the scale is not large, the growth momentum is relatively strong. Image source: Xiangpiaopiao announcement (screenshot) Taking the first three quarters of this year as an example, Xiangpiaopiao's export sales revenue was 28.7249 million yuan, with a year-on-year increase of 93.23%, even exceeding the direct sales channel. Perhaps it is the strong growth of the export business that has led Xiangpiaopiao to find new opportunities to escape the "involution," prompting the decision to invest in building a factory in Thailand. Opportunities and Challenges 400ml cup packaging, fruit tea—for Xiangpiaopiao, this is its "routine operation" in the domestic market, so at the product level, there should not be major business challenges. From a market perspective, Thailand and its neighboring ASEAN countries such as Cambodia, Laos, Myanmar, and Vietnam have the climatic advantage of year-round peak beverage consumption, especially with the improvement of local consumption levels, which will also bring development opportunities for Xiangpiaopiao's overseas factory. Although Xiangpiaopiao's products in this project still use cup packaging, claiming to differentiate from existing competitors that mainly rely on bottled packaging, whether local consumers will accept such products, or how long consumer education will take, remains a challenging task. Fortunately, before this, some freshly made tea drink brands such as Mixue Bingcheng have already penetrated Southeast Asia ahead of Xiangpiaopiao, which can be considered as having done some consumer education for it. Although it is a neighboring country, there are still many differences between the local market and the domestic market. Whether in terms of people, goods, or venues, it will still be a brand-new challenge for Xiangpiaopiao. Regarding the planning of the Thai factory project, Xiangpiaopiao stated in the announcement: "In the future market operation of the project, the company will focus on penetrating health-conscious consumer groups in cities and cover channels such as local modern supermarkets, convenience stores, instant e-commerce platforms, and e-commerce. At the same time, through digital marketing initiatives, we will strengthen brand awareness and promote consumer trial and repurchase." [Moving Toward the C-End] The 11th China FMCG Conference Time: March 16-18, 2026 Location: Chengdu, China