Chatime hopes being stocked in Woolworths will give it an extra leg up, while rival Sharetea is shrugging off a legal dispute to step up growth.
Big retail chains in the bubble tea market have aggressive growth plans with Chatime aiming to almost double the number of outlets to 250 and generate extra sales via the shelves of 1000The overall market is growing fast as Australian cities return to normal and the chains increasingly pitch themselves as having healthier options and new flavours at a time when the cost of shipping tea and other ingredients from Taiwan has jumped by up to five times.
He said while raw material prices were on the rise, the biggest impost was shipping costs from Taiwan.Chief marketing officer Joanna Robinson said the second phase of Chatime’s push into supermarkets, in Woolworths, would start in June. Chatime has five different do-it-yourself bubble tea kits in the tea aisles, and one product in the refrigerated section. The first Chatime products appeared in Woolworths in October.
He wants to expand into other states and territories beyond NSW, Victoria, Queensland and the ACT. Sharetea also runs on a franchise model, and Mr Mu said across all the businesses, the total combined annual sales were headed for $60 million to $65 million.He said tea prices had risen 20-30 per cent in the past year, but the company had absorbed those increases. The largest rise had been in sea freight from Taiwan, up between three and five times.
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