--- title: "Mengniu Launches \"Coffee Latte\"! Entering the 3000 Billion Coffee Market with a \"Curved Path\" Strategy!" description: "Coffee, an ancient beverage, has become increasingly popular over time. Once a symbol of \"middle-class sophistication,\" coffee drinks have quietly moved into the mass consumer market. Across the country, a fierce battle for the coffee market has begun. As a dairy giant, Mengniu also wants a piece of the action. Recently, Mengniu's fresh milk brand \"Shi Ri Xian Yu\" launched a new drink - Cold Brew Coffee Latte. Seeing the word \"coffee\" in the product name, discussions about \"Mengniu selling coffee\" have surged... Is Mengniu selling coffee? No, it's a latte!" author: "咖啡牛奶" publisher: "New Distribution" email: "zhaobo258@gmail.com" telephone: "+8615854817671" published: "2019-10-06" categories: "Consumer & Categories" language: "en" canonical: "https://xinjignxiao.com/en/articles/mengniu-launches-coffee-latte-entering-the-3000-billion-coffee-market-wi-ccb2d0fb/" markdown: "https://xinjignxiao.com/en/articles/mengniu-launches-coffee-latte-entering-the-3000-billion-coffee-market-wi-ccb2d0fb.md" original_source: "https://mp.weixin.qq.com/s/S10iHVc5GI2coPXMmIm0-A" translation: "https://xinjignxiao.com/zh/articles/%E8%92%99%E7%89%9B-%E5%92%96%E5%95%A1%E6%8B%BF%E9%93%81-%E5%BC%80%E5%8D%96-%E4%BB%A5-%E6%9B%B2%E7%BA%BF%E6%95%91%E5%9B%BD-%E4%B9%8B%E5%8A%BF%E6%89%93%E5%85%A53000%E4%BA%BF%E5%92%96%E5%95%A1%E5%B8%82%E5%9C%BA-ccb2d0fb.md" attribution: "New Distribution — https://xinjignxiao.com/en/articles/mengniu-launches-coffee-latte-entering-the-3000-billion-coffee-market-wi-ccb2d0fb/" citation: "咖啡牛奶. “Mengniu Launches \"Coffee Latte\"! Entering the 3000 Billion Coffee Market with a \"Curved Path\" Strategy!.” New Distribution, 2019-10-06. https://xinjignxiao.com/en/articles/mengniu-launches-coffee-latte-entering-the-3000-billion-coffee-market-wi-ccb2d0fb/" usage_policy: "https://xinjignxiao.com/ai-policy.txt" --- # Mengniu Launches "Coffee Latte"! Entering the 3000 Billion Coffee Market with a "Curved Path" Strategy! > Coffee, an ancient beverage, has become increasingly popular over time. Once a symbol of "middle-class sophistication," coffee drinks have quietly moved into the mass consumer market. Across the country, a fierce battle for the coffee market has begun. As a dairy giant, Mengniu also wants a piece of the action. Recently, Mengniu's fresh milk brand "Shi Ri Xian Yu" launched a new drink - Cold Brew Coffee Latte. Seeing the word "coffee" in the product name, discussions about "Mengniu selling coffee" have surged... Is Mengniu selling coffee? No, it's a latte! Coffee, an ancient beverage, has become increasingly popular over time. Once a symbol of "middle-class sophistication," coffee drinks have quietly moved into the mass consumer market. Across the country, a fierce battle for the coffee market has begun. As a dairy giant, Mengniu also wants a piece of the action. Recently, Mengniu's fresh milk brand "Shi Ri Xian Yu" launched a new drink - Cold Brew Coffee Latte. Seeing the word "coffee" in the product name, discussions about "Mengniu selling coffee" have surged... **Is Mengniu selling coffee? No, it's a latte!** But careful netizens may notice: Mengniu's "Coffee Latte" name seems a bit "special." After all, what we usually drink at coffee shops is called "Latte Coffee," but **Mengniu's product is called "Coffee Latte."** Why the unconventional reversal? It's simple: this is a latte with coffee added, not coffee in the true sense. Let's clarify: **Although latte often appears with coffee, "latte" is not coffee. Latte means "milk" in Italian.** If you order a "latte," the waiter will only bring you a glass of milk. What we usually drink as "Caffè Latte" refers to milk coffee. In fact, on the outer packaging of this Coffee Latte, the words "flavored milk" are clearly marked. Through the ingredient list, Shi Jing Ji found that the product contains over 80% raw milk. Combining the "name" and "ingredients," it's not hard to see: **This is a coffee-flavored milk.** And like fresh milk products, **this Cold Brew Coffee Latte also needs to be stored refrigerated, with a shelf life of only 15 days.** According to a Mengniu representative, the core users of this Cold Brew Coffee Latte are **"urban white-collar workers who pursue a refined lifestyle,"** meeting their demand for ready-to-drink coffee. The main offline sales channels are convenience stores, and it is also sold on online platforms. Currently, the product is available on the Shi Ri Xian Yu Tmall flagship store, with an official price of 116.9 yuan for 10 bottles, which translates to over 10 yuan per bottle (250ml). **The Battle for "Coffee" Position Begins** **Nongfu Spring and Coca-Cola Have Already Made Their Moves** In recent years, China's coffee market has entered a high-speed growth phase. More and more companies are making moves in coffee. Compared to directly selling coffee, **many cross-industry companies prefer to make "coffee-flavored" products, entering the coffee market through a "curved path" strategy.** Currently, many companies are making products with coffee. Besides Mengniu's coffee milk, giants like Nongfu Spring and Coca-Cola are also vying for the "coffee" position. Image source: Coca-Cola Tmall flagship store In August this year, Coca-Cola officially launched a coffee-flavored Schweppes soda water on its Tmall flagship store. This product combines soda water with coffee flavor, creating a new taste experience. In May this year, Nongfu Spring released a coffee-flavored beverage - Tan Bing. This is also a carbonated drink, but with coffee ingredients added. Besides incorporating coffee flavor into drinks, there are also many coffee-flavored snacks on the market, such as coffee-flavored biscuits and mooncakes. Not only food companies, but even e-cigarette companies have done the same. On July 29, e-cigarette giant Snow+ launched an "electronic coffee" with great fanfare. **Undoubtedly, this product, which can be claimed as the "world's first 'smoked' coffee," is actually a coffee-flavored e-cigarette.** **Coffee Consumption Is on the Rise** **Market Size Expected to Reach 300 Billion** The coffee market battle is in full swing, and profitability is key. What is the scale of the market behind the coffee that has prompted companies to "enter the game"? Data from Qianzhan Industry Research Institute shows that **China's coffee consumption annual growth rate is around 15%. It is estimated that by 2020, China's coffee market sales will reach 300 billion yuan.** Data source: Qianzhan Industry Research Institute At the same time, public data shows that **China's ready-to-drink coffee market growth rate is over 20%, and by 2021, the market size will reach 14.9 billion yuan.** The rapid growth of the coffee market is **partly a result of consumption upgrades; partly due to changes in consumption habits brought about by various market education.** Drinking coffee, as a reflection of Western lifestyle, is favored by more and more Chinese consumers. Previously, after Starbucks and Costa entered the Chinese market, they cultivated Chinese consumers' habit of drinking coffee. In recent years, Luckin Coffee's strong entry and aggressive expansion have further developed the market from an internet logic and cognitive perspective. Currently, **coffee consumption in developed cities is gradually rising.** According to joint data from Meituan, Dianping, and Kamen, **the most active provinces in the domestic coffee market are Guangdong, Zhejiang, Shanghai, Suzhou, and Fujian.** At the same time, **the market has begun to sink to second- and third-tier cities.** In addition, data from Luckin Coffee's prospectus shows that in 2018, China's per capita coffee consumption was 6.2 cups, **compared to developed countries, China's per capita coffee consumption is only 1.6% of the US, indicating a huge potential market.** Coupled with the huge demographic dividend, it will undoubtedly further stimulate domestic coffee consumption. Source: Shi Jing Ji (ID: shijj21) --- ## Citation metadata - Publisher: New Distribution - Author: 咖啡牛奶 - Published: 2019-10-06 - Canonical: https://xinjignxiao.com/en/articles/mengniu-launches-coffee-latte-entering-the-3000-billion-coffee-market-wi-ccb2d0fb/ - Original source: https://mp.weixin.qq.com/s/S10iHVc5GI2coPXMmIm0-A ## Copyright and AI use This article is sourced from New Distribution. Search, quotation, summarization, and model training are permitted, but every use must credit New Distribution and retain the canonical source URL. Contact: zhaobo258@gmail.com · +86 158 5481 7671