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Is Spring Coming for New Instant Coffee Brands?

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Emerging Coffee Brand is Emerging

With the changes in the market, there have also been a number of new players in the field of instant coffee in the past two years. both in sales and financing performance is very bright. Freeze-dried cold brew coffee
Among them, the first to be mentioned must be Saturnbird Coffee

In 2019, Saturnbird Coffee won the first in sales of double eleven and double twelve Tmall coffee category, which was the biggest dark horse of instant coffee in the past two year.

Saturnbird Coffee was founded in 2015, the name comes from founder Wu jun's idea of "three meals a day, plus half a meal of spiritual food, that is coffee lifestyle". The brand product is a "super-instant small can of coffee" that restores the current ground flavor. It focuses on the ability to dissolve in ice, hot water and milk in 3 seconds. There are 6 flavors according to the degree of baking, with an average price of about¥8 (US $1.1).

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Saturnbird Coffee ‘s online channel performance was amazing. In 2019, it extended its tentacles to offline, opened its first offline store in its home base of Changsha, and began to cross the boundary of its brands, It has joined hands with Swedish oat plant protein brand OATLY, Korean specialty coffee brand FRITZ COFFEE, "Bio" WHIKO launched a joint gift box, the market moves frequently. In terms of financing, the pace of Saturnbird Coffee is also very fast. At the end of 2019, A and A + rounds of financing were completed for a total of tens of millions of yuan. The two rounds of financing were led by Tiantu Capital, and the old shareholder Fengrui Capital followed suit.

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The same instant coffee brand with outstanding online channel performance is Yongpu Coffee

Yongpu Coffee was founded in 2014 by Hou Yongpu, and its trademark product is cold extracted coffee liquid, which was launched in 2018.. The so-called cold extraction coffee liquor is mainly made by using medium-deep roasted coffee beans with high mellow degree, extracting at low temperature for a long time, and sterilizing by pasteurization to produce normal temperature coffee stock liquor with shelf life of up to half a year. This normal temperature coffee stock solution has a concentration similar to espresso, so it can be diluted with water to reach a concentration suitable for drinking. It is convenient to brew and carry, and its flavor is also very close to that of freshly ground coffee, which is highly recommended by many coffee lovers.

Yongpu's cold extracted coffee liquor is divided into 4 different flavors according to the degree of baking and the origin of coffee beans. It can be stored for 3 months in cold storage and retails for ¥3-¥5. In addition, the UFO freeze-dried instant coffee (¥99/box) launched by Yongpu Coffee last October sold more than 20,000 boxes during the Double Eleven due to its simple storage conditions and interesting modeling.

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The brand-building operation of Yongpu is also worth mentioning. There are many good products, but there are few ways to make good products appear in front of more young people. Facing the refined and fastidious consumption main force, Yongpu pays great attention to the original intellectual property rights, in order to guarantee the design need and the quality, they have hired high-quality designers to ensure that the product design can make customers never forget anything. After the brand upgrade, in 2019, Yongpu Coffee has the brand IP "Shi DuanZheng". It is the first among the massive brands to stand out with the cute and cute image of the stone lion as the coffee brand that combines world coffee and Chinese cultural characteristics, Once the product is launched, it can no longer hide the cutting edge of its packaging design and better touch the young pulse.

yongpu coffee brand

Combining soft and hard strength, Yongpu "went out of the circle" with fine coffee all the way. Since its establishment, Yongpu has cooperated with more than 300 brands of coffee products, Netease Cloud Music, First Financial Commercial Data Center, Interface News, TYAKASHA, Wanda, Shanghai Translation Publishing House, New Weekly, etc. The logo of YongPu Coffee makes people pay more attention to the brand and coffee. Different forms of cooperation have injected Yongpu with a diverse image, and have also attracted fans' independent propaganda, When you open the little red book, there were nearly 1,000 notes about Yongpu. This group of users who are keen to pursue novelty have virtually brought unexpected exposure benefits and become the driving force for brand innovation.

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Yongpu is also different from most emerging coffee brands in China. It has a large investment in the supply chain: In recent years, Yongpu has deeply tied a coffee bean roasting factory and a cold extract production by way of equity. the factory and a sub-packing factory are still extending upstream and have their own Blue Mountain Coffee Manor in Jamaica. This kind of operation will make Yongpu have stronger supply chain control ability than general brands, and will also be transformed into Yongpu's product advantages in the future.

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Compared with the first two new coffee brands, the other new coffee brand received ten million yuan in financing last November, which has a stronger Internet temperament. Fan Ruoyu, CEO of Secre Coffee, was Uber's Dalian general manager. Other team members also came from Internet companies, The first seed round financing of RMB 5 million came from Xia Yiping, co-founder of Mobike.

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Secre coffee's Internet temperament is also reflected in the company's emphasis on data-driven. In media reports, Secre once stressed that the team has been doing the whole chain of user life cycle management since the start of the business. Self-run brand small program will be designed and managed in every link from the user entering the applet to the transformation. Perhaps because of the emphasis on data-driven, the annual sales volume of hourly coffee has reached 5 million copies even though it was only on the line for one year.

Another coffee brand that has been successfully financed recently and is more special is Wow coffee

Wow was founded in 2017. It was originally an instant coffee brand. Since then, it has changed its orientation and specializes in Malaysian white coffee. On February 18 this year, Wow coffee completed a 35 million yuan financing round from a family fund in Singapore. After the completion of this financing, Wow Coffee also strategically merged the UR Coffee factory in Malaysia. Although the taste of white coffee is still dominant, the category will be expanded from coffee powder to the entire category of coffee beverages.

According to financing reports, the sales of Wow coffee are still mainly online, and offline are mainly used for pilot self-service coffee vending machines in public places such as schools and hospitals. According to the company's financing announcement, in addition to e-commerce, Wow Coffee will also expand 2B channels such as homestays, business hotels, and supermarkets around schools, and expand to more remote provinces.

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On the whole, the coffee market has been quite lively in the past year: Luckin coffee has been listed, Saturnbird Coffee, Secre and Wow coffee have been financed, the Giant Enterprises has begun to lay out instant coffee, and more and more fine coffee brands have been created.

Although the main share of the domestic instant coffee market is still occupied by international giants such as Nestlé, the emergence of emerging brands has brought more new trends and possibilities

In particular, the changes in online channels have brought the possibility of explosive growth to emerging brands and added many uncertain factors to market competition. Viyaa used to broadcast live for 4 hours, and sold over 30 million yuan for Maxwell ’s instant coffee and Yunnan coffee, and sold 1.3 tons of pre-packaged Yunnan coffee in 2 seconds. Austin also brought three and a half tons of instant coffee and Japanese capsule coffee in the studio, bringing the same concentrated and large-flow exposure as fixed-point blasting to the new brand. Such sudden sales growth has made the market situation more rapidly.

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In addition, the offline market has brought a great impact because of this year's COVID-19, and also brought opportunities for rapid growth to emerging domestic instant coffee brands. In the past two years, the crazy expansion of offline coffee shops has greatly expanded the boundaries of the domestic coffee consumers. In the past two years, the crazy expansion of offline coffee shops has greatly expanded the boundaries of the domestic coffee consumers.

The crowd is already in place and the channel potential energy is huge. Has the spring of the new instant coffee brand come yet?

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