Chinese bubble tea chain Nayuki acquires substantial stake in competitor Lelecha

by asiafoodbeverages
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Chinese bubble tea chain, Nayuki has recently invested Rmb 525 million (US$76.3 million) in high-end tea brand Lelecha, making it the largest shareholder of Lelecha.

Nayuki will have an 85% stake in Lelecha Cayman once the deal is completed, representing nearly 44% of Lelecha operator Shanghai Chatian Catering Management.

Lelecha will keep its own branding, team, and operations, while Nayuki’s strengths in new product development, store expansion, supply chain, digitalization and automation, and internal management will promote Lelecha’s growth.

Lelecha reported sales revenue of Rmb 870 million (US$128.2 million) in 2022. The high-end tea chain plans to open 72 new stores to reach a total of 158 by end of January 2023.

China Insights Consultancy reported that tea chains are expected to grow rapidly in the next 5 years with retail sales likely to reach Rmb 232.6 billion (US$34 billion) in 2025, with a CAGR of 26%.

In 2022, Nayuki also invested in coffee brand Aokka and sugar-free pastry maker He (Studio).

(for more information, refer to Branding & Marketing News section)

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