This is an English adaptation of a FoodBud historical article originally published on January 2, 2024.
FoodBud reported that Mixue Ice Cream & Tea has shifted its listing path to Hong Kong. The company had disclosed an A-share prospectus in September 2022, but after market speculation that the domestic listing would not proceed, it filed for a Hong Kong listing on January 2, 2024, the same day as Guming.
For chain operators, the filing frames Mixue less as a China-only tea-drink chain and more as a global scale foodservice platform built around low-price beverages, franchising, supply-chain control, and dense logistics coverage.
In the first three quarters of 2023, Mixue reported revenue of RMB 15.39 billion and net profit of RMB 2.45 billion. For full-year 2022, revenue was RMB 13.58 billion and net profit was RMB 2.0 billion.
Mixue operates two brands: Mixue Ice Cream & Tea and Lucky Cup. By the end of September 2023, the group had more than 36,000 stores across China and 11 overseas countries, with approximately 5.8 billion cups served in the first nine months of 2023.
Its store network generated approximately RMB 30.0 billion in terminal sales in 2022 and RMB 37.0 billion in the first three quarters of 2023.
As of the end of September 2023, Mixue had 32,180 stores in China and more than 4,000 stores across 11 overseas countries. FoodBud said the company had become the No. 1 freshly made tea-drink brand in Southeast Asia.
As of September 30, 2023, Mixue had approximately 215 million members. Monthly active members reached approximately 38 million in September 2023. In Q3 2023, 45.1% of Mixue’s online orders came from its mini program and the “Mixue Ice Cream & Tea” app.
Mixue’s five best-selling products were iced fresh lemonade, fresh ice cream, pearl milk tea, peach four-season spring tea, and passionfruit drink.
In the first three quarters of 2023 in China, Mixue sold:
FoodBud noted that Mixue’s IPO story had shifted toward the global market. Its benchmark companies moved from domestic tea-drink competitors to Starbucks and Inspire Brands.
As of the end of September 2023, Mixue had 36,200 stores, compared with 38,000 for Starbucks. By cup volume, Starbucks served 7.4 billion cups in the first three quarters of 2023.
Within China, Luckin Coffee was also included as a benchmark. Luckin served 1.2 billion cups in the first three quarters of 2023 and had 13,300 stores as of the end of September.
Among Chinese beverage companies, Mixue ranked fifth by terminal sales, with RMB 34.6 billion in the first three quarters of 2023. The top-ranked company had RMB 70.1 billion in sales.
Mixue’s coffee brand Lucky Cup generated RMB 1.5 billion in terminal retail sales in the first three quarters of 2023, ranking fifth. Luckin Coffee ranked first at RMB 23.0 billion, while Starbucks China ranked second at RMB 19.2 billion.
By cup volume, Lucky Cup ranked fourth, with 200 million cups in the first three quarters of 2023. Luckin Coffee served 1.2 billion cups, while Starbucks China served 400 million cups.
By store count, Lucky Cup also ranked fourth, with 2,900 stores as of the end of September 2023.
In 2022, Mixue procured approximately 50,000 tonnes of lemons, 26,000 tonnes of oranges, 21,000 tonnes of milk powder, 9,000 tonnes of tea leaves, and 5,000 tonnes of green coffee beans. Its global procurement network reaching production origins and its scale allowed it to buy many core raw materials below industry-average prices.
Mixue had five production bases in Henan, Hainan, Guangxi, Chongqing, and Anhui, with a total land area of 670,000 square meters and annual integrated capacity of approximately 1.43 million tonnes. Its intelligent factories had more than 50 automated production lines using equipment and digital tools including ABB robots and automation systems, Probat coffee roasters, and Tetra Pak aseptic high-speed carton filling machines.
In the first nine months of 2023, Mixue’s production loss rate for beverage ingredients was only 0.86%, which the Frost & Sullivan report cited in the filing described as far below the industry average.
Mixue produced its own preforms for syrup and fruit syrup packaging bottles and blow-molded them in-house. In the first nine months of 2023, its self-production cost was approximately 49% lower than external procurement prices.
As of September 30, 2023, Mixue’s warehouse system consisted of 26 warehouses with a total area of more than 300,000 square meters, described as the largest in the industry. Its distribution network covered 31 provinces, autonomous regions, and municipalities in China, around 300 prefecture-level cities, 1,700 counties, and 3,100 townships. FoodBud said this was the industry’s broadest coverage and deepest lower-tier reach.
As of September 30, 2023, Mixue could reach more than 90% of China’s county-level administrative areas within 12 hours. More than 90% of domestic stores were covered by cold-chain logistics. Its distribution network also covered around 300 cities in four overseas countries.
The number of Mixue franchisees increased from 9,784 as of December 31, 2021 to 13,625 as of December 31, 2022. It also increased from 12,470 as of September 30, 2022 to 16,281 as of September 30, 2023.
Approximately 60% of beverage ingredients supplied by Mixue to franchisees were self-produced, which the Frost & Sullivan report cited in the filing described as the highest share in China’s freshly made beverage industry. Core beverage ingredients were 100% self-produced.
In the first nine months of 2023, Mixue’s cooperative planting base in Anyue, Sichuan supplied it with approximately 44,000 tonnes of lemons. Based on procurement volume during the same period, the Frost & Sullivan report cited in the filing described Mixue as China’s largest lemon purchaser.
Mixue established its first production factory in 2012, making it one of the earliest companies in China’s freshly made beverage industry to build a central factory. Its current five bases cover seven major ingredient categories for freshly made beverages: sugar, dairy, tea, coffee, fruit, grain, and other ingredients. Their annual integrated capacity is approximately 1.43 million tonnes.
In 2021, 2022, and the first three quarters of 2023, Mixue’s purchases from its top five suppliers accounted for 19.3%, 16.6%, and 17.2% of total procurement, respectively.
As of the end of September 2023, Mixue held RMB 3.76 billion in cash and cash equivalents.
Note: IPO, sales, store-count, and benchmark figures are historical as of the January 2, 2024 article and cited filing period.