Heytea Raises Its Stake in Sogood Fresh Fruit Tea to 70%

This is an English adaptation of a FoodBud historical article originally published on December 13, 2022.

On December 13, 2022, Heytea increased its stake in Sogood Fresh Fruit Tea, taking control of the brand with a combined shareholding of 70%.

Heytea had already been active in brand investment. At the end of 2021, it acquired Ye Cuishan, after which FoodBud speculated that Sogood Fresh Tea could be a next target.

Stake-Building Timeline

• In February 2022, Heytea formally invested in Sogood Fresh Tea, taking a 15.4% stake.
• In March 2022, Heytea increased that holding to 45%.
• On December 13, 2022, Heytea raised its total stake to 70%, giving it control of Sogood Fresh Fruit Tea.

Portfolio Implications

Shortly before this move, Heytea made a major strategic shift by opening up franchising. Its increased control of Sogood Fresh Fruit Tea followed soon after.

The structure suggests a two-tier brand approach: Heytea for the premium segment, and Sogood Fresh Fruit Tea for the mid-market segment.

Sogood Fresh Fruit Tea had previously said publicly that it expected to double its store count by year-end from more than 150 stores. At the time of the article, it was not yet clear whether that target had been achieved.

Note: shareholding and expansion-target figures are historical, based on the December 13, 2022 article.