At noon on January 5, Yan Yuese, a new tea drinking network red brand, announced a price increase. The price increase mainly focused on milk tea products, most of which were generally adjusted by 1 yuan.
It is worth mentioning that chayan Yuese has recently had a wide range of store closures and salary disputes. In addition, coincidentally, just the day before tea Yan Yuese announced the price increase, Xiangpiaopiao Food Co.Ltd(603711) (603711, SH) also just announced the price increase.
the price of tea Yan Yuese rose for the first time in five and a half years
At noon on January 5th, the tea yam Yue announced the price increase through official WeChat official account.
The price increase of tea Yan Yuese mainly focuses on milk tea products, most of which are generally adjusted by 1 yuan. Among them, the price of Zhixiao increased by 2 yuan, while the price of leisurely, floating for half a day, Zheng and paper kite will not increase this time. The opening date of the new price is January 7. “After drinking Youlan of 16 yuan and Shengsheng of 15 yuan for more than five years, we need 17 yuan and 16 yuan after January 7.”
Photo source: WeChat’s public official account
The price rise of tea Yan Yuese was a little sudden. At more than 1 p.m. on January 5, in a store of chayan Yuese in Hankou, Wuhan, when the reporter mentioned the news of the price increase of chayan Yuese, an employee of the store’s first reaction was that he didn’t know, “we haven’t been notified yet”. Until the reporter reminded him to see the official WeChat official account, the staff mentioned that the price would really rise.
The official account of WeChat’s public WeChat said that it was the first time that it has increased its price in 5 and a half years, and the last price adjustment was in 2016. For the reasons for the price rise, chayan Yuese official micro said, “the raw materials and other costs in the market are rising year by year, and the dividends accumulated before can’t bear a series of superimposed costs.” “for our brand with small profit and high turnover, this price rise is the last step that we can’t stand.”.
From the perspective of milk tea industry, tea Yan Yuese is not the first manufacturer to increase the price. On January 4, Xiangpiaopiao Food Co.Ltd(603711) announced that “in view of the continuous rise in the costs of main raw materials, labor, transportation and energy”, the price of the company’s solid brewing milk tea (including classic series and good material series) products was adjusted. The price increase range of main products ranged from 2% to 8%. The new price will be implemented according to the price adjustment notice of each product from February 1, 2022.
In an interview with the daily economic news on January 5, Zhu danpeng, an analyst of China’s food industry, said that at present, the whole milk tea supply chain is facing price increases, including the costs of cream, milk powder and other accessories are rising, so tea Yan Yuese is more passive price increases this time.
The reporter noted that the condensed milk production enterprise Panda Dairy Corporation(300898) (300898, SZ) also announced a price increase recently. On December 30, 2021, Panda Dairy Corporation(300898) announced that in view of the continuous rise in the costs of main raw materials, packaging materials, labor and transportation of the company’s products, the company decided to adjust the ex factory price of the company’s main condensed milk related products by 3% ~ 10%, and the new price will be implemented on January 1, 2022.
analyst: it will not have a great impact on sales
Once rushed to the hot search because of queuing for 8 hours. The new tea brand tea Yan Yuese can be described as the net red in the net red. What do consumers think of the price increase of tea Yan Yue color?
Wuhan citizen Ms. Yu’s office has a tea Yan Yuese store downstairs. She said that a rise of one or two yuan for milk tea of more than ten yuan is not a big deal. She is not very sensitive to the price of milk tea, and the color of tea is not particularly expensive compared with some other milk tea brands. But Ms. Yu also said that compared with other brands of milk tea, she felt that the tea was not particularly good, so she only drank it twice in the last six months.
According to Zhu danpeng’s analysis, even if the price increases by 1 yuan to 2 yuan, the price of tea Yan Yue color is still close to the people, which matches its overall comprehensive strength, brand strength and product strength, and should not have a particularly great impact on sales. However, the price increase of chayan Yuese is a passive price increase after the rise of raw material costs. Although it can alleviate the pressure brought by the rise of costs, it has limited impact on the improvement of profitability. Zhu danpeng also said that not only the price rise of tea Yan Yuese, but also the price rise of the whole milk tea industry will become inevitable in the future. In this case, how to reduce the impact of price rise is the top priority of milk tea enterprises.
In recent years, the milk tea industry has been impacted by the epidemic, and the industry competition is becoming more and more fierce. It seems that life is not so easy. “The whole new tea has been seriously involuted.” Zhu danpeng said.
In the past month, the reporter of the daily economic news has twice placed orders for milk tea at the two Wuhan stores of chayan Yuese. For the first time, there is no need to queue up and wait for milk tea production for about half an hour; The second order takes about two or three minutes in line, waiting for milk tea to be made for about 15 minutes.
There are many reasons why the 8-hour queue in Wuhan stores is no longer grand, including the freshness of consumers is not as good as before, the increase of distribution in Wuhan stores and more fierce competition. It is worth mentioning that the recent tea Yan Yuese also had a wide range of store closures and salary disputes, and successively boarded the hot search. In November 2021, chayan Yuese once said through the official microblog that many stores had been temporarily closed due to the epidemic.
The operation and profit early warning announcement for the third quarter of 2021 issued by Naixue’s tea (2150, HK), the first share of new tea, also shows that the epidemic situation in some regions is repeated, which is expected to have a continuous impact on the performance, and the adjusted performance in 2021 will be at a loss. From the secondary market performance, as of the closing on January 5, Naixue’s tea share price has fallen by more than 60% compared with the issue price.
(Daily Economic News)
