China's bubble tea giant Mixue taps into fresh beer market for 300 million yuan

China’s Mixue (2097), best known for its low-cost bubble tea and coffee, is tapping into freshly-brewed beer with a 285.6 million yuan (HK$311.5 million) investment for a 51 percent stake in a chain controlled by the founder’s spouse.

The company said it will inject capital to subscribe for shares of Fulujia, which is controlled by Tian Haixia, the spouse of Mixue's executive director and chief executive Zhang Hongfu.

Mixue is also set to acquire 2 percent shares of Fulujia for 11.2 million yuan through an independent third party, bringing its total shareholding ratio to 53 percent.

Fulujia, which owns the fresh beer brand FULU Fresh Beer, primarily offers fresh beer products priced from 6 to 10 yuan per 500 milliliter, aligning with Mixue's value proposition of “offering high-quality value-for-money products”, Mixue said.

As of August 31, Fulujia operated approximately 1,200 stores across 28 provinces, autonomous regions, and municipalities in China, providing fresh beer products from classic fresh beer to innovative varieties such as fruit beer, tea beer, and milk beer, according to an exchange filing.

Mixue said the move helps to extend its product portfolio beyond freshly-made fruit drinks, tea drinks, ice cream, and coffee to include fresh beer, further meeting consumers’ common demands amid China's larger beer market.