The industry saw a mix of long-term ingredient trends, aggressive franchise incentives, food safety responses, and cross-border M&A activity on April 2, 2026. These events highlight how brands are managing supply chain innovation, expansion models, and consumer trust in a competitive market.
1. Strawberry as a Key Ingredient
Between February 2025 and February 2026, major ready-to-drink tea brands launched 58 new products containing strawberry elements, making strawberry the second most popular fruit ingredient after lemon. Strawberry has evolved from a “winter seasonal” item to a high-frequency, year-round application across the industry.
2. Shuyi Shaoxiancao(书亦烧仙草) Franchise Policy
Shuyi Shaoxiancao(书亦烧仙草) released its latest franchise policy, which includes full store opening fee waivers, a CNY 30,000 equipment subsidy, and a 12-month rental subsidy. The policy also offers existing franchisees up to CNY 50,000 per new store, an additional CNY 10,000 for key cities, and a CNY 10,000 referral reward. This aggressive incentive structure signals a push to rapidly expand store density and attract new franchise partners.
3. Luckin Coffee(瑞幸咖啡) Expansion and Food Safety Response
Last week, Luckin Coffee(瑞幸咖啡) opened 328 new stores. Separately, the company addressed a food safety concern regarding an abnormal purple color on coconut meat in its “Whole Raw Coconut” new product. Luckin Coffee(瑞幸咖啡) responded that the pinkish color results from natural polyphenols and active enzymes in the coconut flesh after the shell is cut, confirming it is a normal phenomenon and safe for consumption. The swift public response demonstrates how brands must manage quality perception alongside rapid expansion.
4. Xianji(闲吉) and YH.Tang(益禾堂) New Launches
Xianji(闲吉) introduced three Dragon Well tea-based beverages: Royal Dragon Well, Spring Dawn·Dragon Well Cheese, and Qiantang Dragon Well·Light Milk, blending the tea base with fresh milk, cheese, and matcha. YH.Tang(益禾堂) launched two mint-focused drinks: Mint Oreo Ice Cyclone and Mint Kiwi, paired with fresh milk and kiwi. Both brands are tapping into distinct flavor profiles (premium tea leaf and refreshing mint) to diversify their spring menus.
5. Heytea(喜茶) April Fools’ Day Campaign
On April Fools’ Day, Heytea(喜茶) collaborated with illustrator “Nanke Yike” to release a limited-edition 3D card featuring exaggerated gestures such as “toe heart sign” and “finger spiral heart.” The card, given free with orders, quickly sparked discussions on social media due to its absurd and humorous style. This campaign shows how low-cost, quirky merchandise can generate organic online buzz and brand engagement.
6. Keurig Dr Pepper and JDE Peet’s Merger
Keurig Dr Pepper (KDP) and JDE Peet’s jointly announced that KDP has acquired 96.22% of JDE Peet’s shares through a tender offer. The combined businesses will eventually be split into two independent U.S.-listed companies: BeverageCo., focusing on North American beverage operations, and Global Coffee Co., a global coffee giant. This major restructuring is set to reshape the international coffee supply and brand landscape.
7. Blank Street Funding Talks
Blank Street, a U.S.-based coffee chain, is reportedly in preliminary talks to raise at least USD 100 million (approximately CNY 689 million) to accelerate expansion, including entering the Los Angeles market. The company was valued at around USD 500 million last year, and the new round could bring its valuation close to USD 1 billion, though the final size and terms are not yet confirmed. This potential funding reflects continued investor appetite for fast-growing, digitally native coffee concepts.
