Heytea CEO: ‘We plan to really shake up Sydney’s beverage scene’
The demand for small, affordable, everyday luxuries that offer a dopamine hit in the midst of a cost-of-living crisis – dubbed ‘little treat culture’ – is one of the factors behind the success of the global milk tea brand Heytea, which has over 4000 stores in 300 cities worldwide.
Among the crowded bubble tea market in the Asia-Pacific, Heytea stands out for its commitment to using ‘real’ ingredients and fun, out-of-the-box drink formulations that aren’t available anywhere else.
The Chinese-founded company entered the Australian market in 2023 with a store on Swanston street in Melbourne. Now, a year later, the business has opened a second store on George Street in Sydney’s CBD.
Founder and CEO Neo-Nie started the business out of frustration with the low-quality ingredients that popular milk tea shops often used, such as non-dairy powder and tea powder.
In 2012 he opened a small shop in an alley in Jiangbian, China and sold his creation Naigai Cha – a ‘cheese tea’ recipe he had crafted in his own kitchen to soften the taste of tea by adding a fine layer of cheese foam made with real milk.
This marked the start of a new era of healthier tea in China, and the business has remained to true to its ethos of never using artificial flavours or creamers as it continues to expand globally.
Little treat culture
“We love the ‘little treat culture’ in Australia and know that our drinks are perfect for that afternoon pick-me-up, a way to mark the end of your working day or even something to enjoy socially with friends,” Nie told Inside Retail.
Gen Z’s love of iced drinks is more prominent than ever, and Heytea is leaning into this with its mission to rejuvenate traditional tea products. Nie flagged that the businesses’s primary customer base is health-conscious individuals aged 20-35.
“The key difference with our beverages is that those who are health-conscious and want a refreshing drink after hitting the gym or taking a class, don’t have to sacrifice their health focus because they want to enjoy a little treat,” Nie said.
Creating hype
“We’ve seen it globally and here in Australia that our magnets are part of what attracts queues during our pre-opening period, alongside beverage specials,” Nie said.
Another hit with customers was the brand’s 2023 collaboration with Italian fashion house Fendi.
“We introduced cheese tea to change the perception of tea for the younger generation,” Nie said.
He believes Heytea can reintroduce tea to a modern audience by using natural ingredients and fun and innovative drink formulations.
“We plan to really shake up Sydney’s beverage scene,” he said. While he acknowledged that there are a few milk tea brands in the Australian market, he said “none really compare to what we do”.
“Australians in particular are quite health-focused, we believe you shouldn’t have to sacrifice your health because you want to enjoy Asian-style teas,” Nie said.
In 2018, Heytea opened its first store outside China in Singapore, making it the first Chinese new-style tea brand to go global.
Heytea quickly became popular in Singapore, with daily sales averaging 3000 cups per day, and in August 2023, the brand expanded to the UK and Canada, in addition to Australia.
In December 2023, Heytea entered the US market with the opening of a store in New York. “More stores will be coming in Sydney and Melbourne before we will set our sights on Brisbane,” Nie said, noting that 10 stores are already slated for opening.
Nie views activations and promotions to celebrate new store openings as a way to give back to fans of the brand that have built it into the successful business it is today.
“We have seen queues down George Street and on our first day, one person queued for over five hours to get their hands on one of the first Heytea Sydney drinks,” Nie said.
The blueprint for Heytea stores is consistent globally so each has a similar look and feel.
“It’s really important that our stores not only look great, but also are practical for our staff and customers,” he added.
With the growing focus on health and wellness Heytea ensures transparency with its customers and actively discloses the ingredients and nutritional value of its offering and “opening in Australia will not change this,” Nie said.
“We use real fruit, real milk and real tea to create all our drinks and won’t be changing this, even as we continue to grow,” Nie finished.
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