All major milk tea brands are raising prices or it will be a big test in the tea and beverage industry. Even Coke prices will rise.

The price of all kinds of drinks has gone up over the years, such as milk tea is no exception. From a cup of Greater Taipei milk tea worth 3 yuan ten years ago to a cup of happy tea worth 30 yuan a cup now, the price has increased tenfold, but it seems that the highest price of milk tea drinks commonly seen in the market now stays around 30.

Because there are many milk tea brands that take the affordable route, such as Honey Snow Ice City, a little bit, coco, and so on, the prices of milk tea stores are all around 5-20 yuan, so these milk tea brands have also obtained a number of loyal consumers. After all, 30 yuan per cup of milk tea is not acceptable to everyone, but just after the beginning of the year, we found that many milk tea shops that took the middle-and low-end route began to raise the price of drinks.

Although the cost of drinks increases every year, this is the first time that such a wide range of price increases have been seen. Thus it can be seen that the impact of the epidemic on enterprises is also huge. The material costs and raw material costs of milk tea shops are all on the rise, so everyone will find that various tea shops have announced price increases one after another, which also makes consumers feel very helpless.

For example, a little bit directly posted a price increase notice, clearly shown to the public, while coco can, Honey Snow Ice City, like tea and other tea brands are quietly raising the price of drinks, and this measure is bound to dissuade a group of price-sensitive consumer groups, which is undoubtedly a heavy blow to most tea brands.

Take Xi Tea and Nai Xue, for example, they take the middle-and high-end expensive route, and the prices of drinks are all above 20, so before that, many consumer groups will look at the middle-and low-end tea brands with lower prices, but now the middle-and low-end tea brands have also begun to raise prices, and the gross margins of these brands themselves are low. If prices rise, then consumers will turn to middle-and high-end tea brands of better quality in the future. Take the feedback of various consumer groups on Weibo, for example, many people cannot accept the price increase, thinking that if the prices of mid-and low-end brands go up, why not buy better quality ones?

Thus it can be seen that the price increase of food raw materials is also inevitable for the packaging materials that tea brands need to use. therefore, the large-scale price increase in the tea industry will also carry out great innovation through this time, and it is necessary to improve the quality of their own drinks. in order to retain the original consumer groups, and then to develop a new sales model, which is also the tea industry must experience.

Because if an enterprise has been in a stable state, there is no sense of crisis, it is bound to be no progress. Only by gaining a firm foothold in a crisis and laying a solid foundation can enterprises develop healthily in a field.

In addition, for example, the price of Coke, which is the most popular in the beverage industry, has not increased in the past decade, but this year there is news that the price of Coke may also be raised. The news comes from the Internet, but in fact, this news was announced by BC NDP as early as last year. The original description said that there would be a tax measure on sugary carbonated drinks, and this measure was originally scheduled to be implemented on July 1, 2020. However, the implementation of this measure was postponed until April 1 this year because of the epidemic. It is also inevitable to see a rise in the price of Canadian cola.

Having said that, after all, Canada is still far away from us, so as to whether the price of Coke in our market will rise, this possibility is actually not high, because the cost of Coke itself is very low. and at present, the Coke brands in the domestic market have long been occupied by the two giants Coca-Cola and Pepsi, and naturally neither of them will raise prices for the sake of competition. And the two cola giants themselves take the route of small profits and quick turnover. If the two cola giants raise prices, then many new competitors will take advantage of all available space to take the affordable route, then the market share will be carved up and profits will be lower and lower. this is why the two Coke companies have not raised prices all the time.

To sum up, the increase in the price of milk tea is inevitable, and it is only a matter of time, but it is also a test whether we can seize this crisis and defend our own brand, but generally speaking, no matter what enterprise wants to develop healthily, it will certainly be wavy and spiraling.

* Image source: Internet

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