---
title: "Scene is Category: How Fan Xiaoqi Emerged as the 'No.1 Milk Soda' from the Dining Channel"
description: "In the beverage industry, where flavor hits emerge endlessly and new products iterate rapidly, an innovative product focused on the 'meal pairing scene' is quietly gaining traction through the dining channel. Called 'Milk Soda'—a carbonated lactic acid bacteria drink—it precisely taps into the consumer psychology of 'wanting to relieve spiciness and greasiness, and enjoy a refreshing taste while eating.' In less than a year, Fan Xiaoqi has leveraged this innovation to expand from Ningbo to most cities nationwide, and since mid-April, the number of effective dining sales points has grown over 50% month-on-month."
author: "冯瑶"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2025-05-15"
categories: "Consumer & Categories, Management & Methods"
language: "en"
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markdown: "https://xinjignxiao.com/en/articles/scene-is-category-how-fan-xiaoqi-emerged-as-the-no-1-milk-soda-from-the-9c6b30a7.md"
original_source: "https://mp.weixin.qq.com/s/914ucbrXWQEoHxfx1DuZEQ"
translation: "https://xinjignxiao.com/zh/articles/%E5%9C%BA%E6%99%AF%E5%8D%B3%E5%93%81%E7%B1%BB-%E8%8C%83%E5%B0%8F%E6%B1%BD%E5%A6%82%E4%BD%95%E4%BB%8E%E9%A4%90%E9%A5%AE%E8%B7%91%E5%87%BA-%E5%A5%B6%E6%B1%BD%E7%AC%AC%E4%B8%80-9c6b30a7.md"
attribution: "New Distribution — https://xinjignxiao.com/en/articles/scene-is-category-how-fan-xiaoqi-emerged-as-the-no-1-milk-soda-from-the-9c6b30a7/"
citation: "冯瑶. “Scene is Category: How Fan Xiaoqi Emerged as the 'No.1 Milk Soda' from the Dining Channel.” New Distribution, 2025-05-15. https://xinjignxiao.com/en/articles/scene-is-category-how-fan-xiaoqi-emerged-as-the-no-1-milk-soda-from-the-9c6b30a7/"
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---

# Scene is Category: How Fan Xiaoqi Emerged as the 'No.1 Milk Soda' from the Dining Channel

> In the beverage industry, where flavor hits emerge endlessly and new products iterate rapidly, an innovative product focused on the 'meal pairing scene' is quietly gaining traction through the dining channel. Called 'Milk Soda'—a carbonated lactic acid bacteria drink—it precisely taps into the consumer psychology of 'wanting to relieve spiciness and greasiness, and enjoy a refreshing taste while eating.' In less than a year, Fan Xiaoqi has leveraged this innovation to expand from Ningbo to most cities nationwide, and since mid-April, the number of effective dining sales points has grown over 50% month-on-month.

In the beverage industry, where flavor hits emerge endlessly and new products iterate rapidly, an innovative product focused on the 'meal pairing scene' is quietly gaining traction through the dining channel.
It's called 'Milk Soda'—a carbonated lactic acid bacteria drink that combines the refreshing fizz with the properties of lactic acid bacteria, precisely targeting the consumer psychology of 'wanting to relieve spiciness and greasiness, and enjoy a refreshing taste while eating.'
In less than a year, Fan Xiaoqi has leveraged this innovative product to expand from Ningbo to most cities nationwide. Since mid-April, the number of effective dining sales points has grown over 50% month-on-month, and it has achieved the milestone of 'No.1 in national milk soda sales.'
The dining channel has always been a fiercely contested battleground in the beverage industry. How did Fan Xiaoqi break through? With this question, New Distribution conducted an in-depth exchange with Lu Ye, partner and vice president of Fan Xiaoqi, to uncover the thinking behind breaking into the dining channel and share it with our readers.
"What to drink while eating?"
—'Milk Soda' starts from the dining table
If the rise of tea drinks was to solve 'deliciousness during leisure time,' then 'Milk Soda' has a more precise entry point—what to drink while eating?
"It's a beverage solution summoned by the 'dining table' need," admits Lu Ye, partner of Fan Xiaoqi.
Compared to other drinks, Milk Soda fills the 'beverage gap' at the dining table: when eating, you need something that cuts through grease and offers texture. Milk Soda uses 'the taste and nutritional value of lactic acid bacteria plus the refreshing kick of carbonation' to fill this void.
This reverse development based on the 'meal pairing scene' gives the Milk Soda category a reason to exist and creates a natural usage entry point. It's neither an imitation of popular flavors nor an extension of traditional milk drinks, but a new solution for a specific drinking occasion.
More crucially, Fan Xiaoqi directly captured consumer mindshare by naming the category 'Milk Soda.'
"On one hand, it sounds simple and memorable—consumers immediately understand it's milk flavor plus fizz; on the other hand, it creates a new cognitive unit independent of existing perceptions. This naming naturally carries category-shaping power," Lu Ye explained.
By targeting a precise need and clear scene, Fan Xiaoqi laid the first mental foundation for 'Milk Soda' from zero to one. As Fan Xiaoqi continues to deepen its presence in the dining channel, the mental binding of 'Milk Soda = Fan Xiaoqi' is accelerating.
"How to make consumers remember it on the first sip?"
—How Fan Xiaoqi penetrates the dining channel
"Our product is born for dining, so we must truly root ourselves in this channel," Lu Ye stated bluntly.
Their approach can be summarized in three keywords: channel is brand, stacking is communication, and model is marketing.
1. Channel is brand: Make the product visible on the 'dining table'
"Every time consumers see our product in a restaurant, it's a brand impression," Lu Ye believes. "Over time, the association between the Milk Soda category and eating is established naturally in real-life scenarios."
Fan Xiaoqi uses 'display as scene' to bind Milk Soda to multiple touchpoints such as dining tables, order cards, and food pickup counters, creating a complete meal-pairing association loop.
2. Stacking is communication: Terminal displays are the strongest mind-seeding
If you've visited some Fan Xiaoqi partner restaurants in Ningbo or Chongqing, you might see tall stacks of drinks at the entrance, some even occupying space originally for beer.
"Our displays are not just for showing; they are communication," Lu Ye said. "Many people first remember Fan Xiaoqi from the tall stacks of Milk Soda at the restaurant entrance."
Those tall stacks serve as visual anchors and the first brand touchpoint—even more imposing than beer.
3. Model is marketing: Replicate from one city's 'thorough penetration' to nationwide
Starting in Ningbo, Fan Xiaoqi didn't rush to expand aggressively but chose to 'drive the whole from a point' in the early stage, gradually replicating successful experience.
"After we tested a playbook in Ningbo, when we went to Chongqing and Xinjiang, we weren't as clueless as at the start," Lu Ye shared. "Each region has its cultural differences and dietary preferences, but our methodology is unified and can be quickly implemented."
This approach seems heavy, but it's highly efficient. Once a city is educated, not only do sales ramp up quickly, but brand mindshare also begins to solidify.
"Who executes these playbooks?"
—How Fan Xiaoqi's combat-oriented organization is built
If the playbook determines 'how to do it,' the final success depends on 'who does it.' Fan Xiaoqi's organizational system is like a combat force on standby.
In Fan Xiaoqi's organization, 'perception' is placed above 'planning.' Brand VP Lu Ye and the core team don't make decisions from the office; they are stationed in frontline markets year-round, personally visiting stores, listening to feedback, and observing how users order and drink.
This 'ground-hugging' management style makes strategy not a top-down slogan but a 'living system' that can adjust to terminal changes at any time. Additionally, market distributors can send questions and suggestions to Lu via WeChat at any time during frontline operations—something unlikely in traditional FMCG companies.
1. 'The capable rise, the average yield, the incompetent step down': Practical logic in organizational culture
Fan Xiaoqi doesn't have a complex hierarchy; instead, it evaluates employees based on 'battle results.' This practical, performance-driven talent mechanism can be summarized by Lu's words: 'The capable rise, the average yield, the incompetent step down.'
Salespeople who can create models in the market and deliver results are quickly promoted and empowered. Conversely, those unwilling to go down to the frontline or keep up with the pace, no matter how senior, must step aside.
2. Using 'Fan Merchants' as benchmarks to unite channels and turn distributors into part of the brand
In Fan Xiaoqi's development path, distributors are not just 'sales channels' but co-creating partners of the brand.
Fan Xiaoqi affectionately calls its quality partners 'Fan Merchants' and proactively shares operational experience, methodologies, and other accumulated results with them, even inviting them to participate in discussions on product iteration and playbook optimization.
Many 'Fan Merchants' have, through co-creation with the brand, gradually developed playbooks suited to local dining markets and become regional benchmarks. These distributors have also elevated their capabilities—from traditional distributors to 'dining solution partners' with brand thinking, scene-based playbooks, and user reach capabilities.
It can be said that Fan Xiaoqi doesn't advance the market through scattered distributors but integrates them into a coordinated, self-driven 'external combat team' through 'Fan Merchant benchmarks.'
"Why only dining?"
—Strategic focus is the only way to achieve certainty
Speaking of the dining channel, insiders know it's 'hard, slow to scale, and requires persistence.' But it's precisely in this 'hardest battlefield' that Fan Xiaoqi chose to persist to the end.
Many brands have walked this path—Wang Laoji, Jing Jiu, Jiang Xiaobai, Weiyi Soy Milk, Dayao Soda, Songyou Juice... Their rise trajectories are mostly closely tied to the 'dining channel.'
The reason is not hard to understand: dining establishments are the most authentic life scenes for consumers, concentrating brand exposure, product trials, purchase decisions, and even directly influencing repurchase behavior. More critically, the natural 'closedness' of the dining channel gives it a certain exclusivity—whoever enters first locks in a fixed customer base.
But dining also has barriers: first, connections; second, investment; third, execution. The channel is slow to scale, complex to operate, and not easy to replicate at scale, which deters many brands.
Fan Xiaoqi's choice: don't bypass, don't cut corners, but concentrate resources and persist to the end. 'One category, one scene, one channel, done to the extreme'—this is Fan Xiaoqi's strategic determination.
This focus not only makes resources more effective but also clarifies brand strategy:
  * Channel side easier to penetrate: Distributors are more willing to invest resources in a brand 'with potential to become a category representative';
  * Marketing side easier to communicate: Focused communication, brand message not diluted;
  * Organization side easier to coordinate: Aligned goals, faster action.
As Milk Soda gains market attention, many brands have quickly launched similar products, but from Fan Xiaoqi's perspective—those followers mostly remain at the 'making flavors' stage.
"They are adding another SKU; we are defining a category," Lu Ye stated directly.
From a more fundamental perspective, the relationship between beverages and the dining scene is always competitive—consumers only order one drink per meal. Whether between brands or among multiple products in the same distributor's portfolio, it's essentially a fight for the 'chance to be ordered.'
In this process, the competition is never about who has more products or newer gimmicks, but who can occupy a higher priority in key scenes.
Lu told me that during recent visits, he encountered some struggling distributors and found their problems were actually 'advantages' they had built themselves: multiple excellent products across multiple categories, mainly new brands in mature categories. In the dining cooler, it seemed all products were theirs, but with equal attention, Fan Xiaoqi was just a corner or two.
As a brand, Fan Xiaoqi firmly adheres to one category, one SKU, one direction—to push one product into one scene and achieve one result. It is this focus that creates pressure at the execution level, and distributors who firmly follow this strategy have truly achieved results.
Final Thoughts
In an era where everyone wants 'omnichannel, all-category, high-explosive growth,' Fan Xiaoqi goes against the grain: only one scene, only one category, only one channel.
This path seems simple, but truly executing it tests organizational endurance, strategic determination, and execution penetration.
New Distribution believes that what's worth watching about Fan Xiaoqi is not just the 'Milk Soda' product, but how, in an uncertain environment, it has carved out its own path of certainty through scene focus, channel deep cultivation, and organizational combat effectiveness.
Such capabilities are even scarcer in an industry where 'everyone wants to scale up, but everyone lacks a handle.'
**If you are interested in Fan Xiaoqi, feel free to add the WeChat below to inquire about cooperation details.**


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## Citation metadata

- Publisher: New Distribution
- Author: 冯瑶
- Published: 2025-05-15
- Canonical: https://xinjignxiao.com/en/articles/scene-is-category-how-fan-xiaoqi-emerged-as-the-no-1-milk-soda-from-the-9c6b30a7/
- Original source: https://mp.weixin.qq.com/s/914ucbrXWQEoHxfx1DuZEQ

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