Signing with the Asian Games, selling 300 million cups, and investing in a factory with an annual output of 1.3 billion packs, how big is the "ambition" of Sumidagawa Coffee

According to the "Analysis Report of China's Coffee Industry Market Demand and Investment Planning for 2020-2025" of the Foresight Institute, it is preliminarily estimated that the market size of my country's coffee industry will maintain an average compound growth rate of 10% from 2021 to 2026, and will be close to 170 billion by 2026.
yuan.

Among the new coffee brands that are constantly surging and want to hit the "front wave", we have paid attention to Sumidagawa Coffee.

The founder, Mr.
Lin Hao, obtained entrepreneurial inspiration when he was studying in Japan.

Sumida River Hanging Ear Fresh Coffee

Image source: Sumida River Coffee

Founded in 2015, it has a very eye-catching "resume":

In August 2020, Sumida River Coffee received tens of millions of financing.

On November 9, 2020, Tmall International and Hangzhou jointly launched the "2020 Tmall International World Factory" project.

Sumida River Coffee became one of the first 10 companies to settle down, and it was also the only food and beverage brand among the 10 companies.

Among the two major coffee categories, hanging ear coffee and coffee liquid, Sumidagawa ranked No.

1 in both the number of cups sold during Double 11 and the total sales in 2020.

On December 31, 2020, the cumulative value of the total number of cups sold by Sumida River Coffee worldwide has reached 300 million cups.

In April 2021, Sumida River Coffee completed nearly 300 million yuan in Series B financing.

…

Recently, FBIF learned that Sumida River completed the signing ceremony on April 12 and officially became the exclusive official coffee supplier for the Hangzhou 2022 Asian Games, and will entertain guests from all over the world with fresh coffee on behalf of the Hangzhou Asian Games.

So, as a cutting-edge brand, what insight does Sumidagawa Coffee have on its industry? What is the significance of this cooperation with the Hangzhou Asian Games for the industry? This article will analyze for you in turn.

Sumida River signed the Asian Games, wanting coffee to become Hangzhou's city card

Sumida River signed the Asian Games, wanting coffee to become Hangzhou's city card

The headquarter of Sumidagawa China is located in Hangzhou.

As a cutting-edge coffee brand "created in China, made in the world", Sumidagawa hoped to integrate the global excellent industrial chain and feed back the domestic coffee industry at the beginning of its establishment.

Yesterday, Sumida River successfully signed a contract with the 19th Asian Games in Hangzhou 2022 (hereinafter referred to as Hangzhou Asian Games), becoming the exclusive coffee supplier for the Hangzhou Asian Games, and will provide fresh and high-quality products for the participants and staff of the Hangzhou Asian Games.

Products and offline physical services.
Mao Genhong, Deputy Secretary-General of Hangzhou Asia Organizing Committee and Deputy Secretary-General of Hangzhou Municipal Government, and Lin Hao, founder and chairman of Sumida River Coffee, attended the signing conference.

Signing conference site

Image source: Sumida River Coffee

We understand that Sumida River will host Asian Games-themed online events to create an Asian Games-themed coffee art space, making coffee another city card for Hangzhou.

So, what product philosophy does Sumidagawa have? We can first look at a set of data:

In 2016, only about 3% of consumers had drunk hanging ear coffee.

In 2017, this ratio became 20%.

In 2018, the growth rate of filter coffee (that is, hanging ear coffee) was outstanding, and the sales growth of hanging ear coffee was about 40%.

In 2019, the most popular products of the post-90s generation on Taobao are tooth whitening devices, ear-hanging coffee and mobile air conditioners.

[1]

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Also in the past few years, large companies have also begun to enter the hanging ear coffee market, and Nestlé and Nongfu Spring have successively launched hanging ear coffee products.

Where is the "scent" of hanging ear coffee? Sumida River Coffee (hereinafter referred to as "Sumida River") shared their views with us.

In the view of Sumida River, the form of coffee products can actually be divided into two categories: one is freshly ground products, such as hanging ear coffee; the other is convenient products, such as ordinary three-in-one, two-in-one instant, freeze-dried Coffee powder, coffee liquid capsules, etc.

When consumers buy portable products, they consume the functional beverage attributes of coffee, such as expecting to achieve refreshing effects.

However, with the rapid development of functional foods, the market space for portable coffee products is being compressed, and the coffee market is more The one with development potential is the freshly ground product, which is the core track of Sumida River-hanging ear coffee.

Sumida River Hanging Ear Fresh Coffee

Image source: Sumida River Coffee

Coffee is an addictive consumer product.

The more you drink, the higher the demand for flavor.

From the perspective of consumers drinking coffee, 34.
0% and 31.
8% would drink coffee when staying up late or working at work, and 32.
0% would drink coffee while relaxing at home, watching dramas and playing games.
[2]

This shows that the coffee consumption scene is becoming more and more diversified, no longer limited to a single "stay up late and refreshing", but to develop into a new lifestyle.

Because of the clever structure of the hanging ear coffee, you only need to put the two "small ears" of the hanging ear bag on the cup and slowly inject hot water to complete the coffee brewing by drip filtration, which not only can taste the sourness of the coffee , Sweet, bitter, mellow, and fragrant.
You can also appreciate the bubbles when the coffee powder and water merge during the water injection process.
It is a pleasant enjoyment to watch the water slowly penetrate into the cup.

Therefore, for people who regard drinking coffee as a way of life, hanging ear coffee has become a very cost-effective choice.

Secondly, Hanger Coffee originated in Japan in 1990.
Being in Asia, our food and consumption habits are similar to those of Japan, so the changes in the Japanese coffee market can also give us some reference.

Sumida River Hanging Ear Fresh Coffee

Image source: Sumida River Coffee

In Japan, hanging ear coffee has long become the mainstream choice of consumers.
The 2018 market report of the Japan Coffee Association also shows that the consumption of hanging ear coffee is still growing at a growth rate of 158%.
[3]

Moreover, in addition to hanging ear fresh coffee, Sumida River’s freeze-dried coffee and capsule fresh coffee liquid are also unique, creating differentiated competitiveness in the highly competitive boutique instant market.

When evaluating Sumida River coffee, many consumers will unanimously say: "Sumida River coffee is so fragrant.
" In fact, this "fragrance" comes from the Sumida River's freshness.

The key indicator for achieving "freshness" is residual oxygen.

We have learned that in other domestic coffee products, the nitrogen-filled residual oxygen content averages around 3%-5%, and there are some cases where nitrogen is not filled at all.
Nitrogen filling can well isolate the contact between coffee and air, and ensure that the flavor of coffee is not destroyed.
In Sumida River's coffee products, the residual oxygen content of the ear coffee can be controlled within 1%, and the residual oxygen content of the capsule fresh coffee liquid product can be controlled within 0.
6%, which is at the leading level in the industry and can guarantee the freshness of the coffee to a large extent.
[6]

According to Tmall data, Sumida River’s freeze-dried coffee sold 2.
5 million cups within 45 days of its launch and was selected as a “super single product” on Tmall.
During Double Eleven in 2020, Sumida River’s fresh coffee liquid ranked first under the category of coffee liquid.

Taking up 90% of the founder's energy, what has Sumidagawa's supply chain construction done?

Taking up 90% of the founder's energy, what has Sumidagawa's supply chain construction done?

While colleagues in the coffee industry are emphasizing their own cultural attributes and fan stickiness, Sumida Chuan focuses on the supply chain.
Lin Hao, the founder of Sumida River, said bluntly: "Since I founded Sumida River, the supply chain has occupied 90% of my energy.
"

Why does Sumidagawa attach so much importance to the supply chain?

Why does Sumidagawa attach so much importance to the supply chain?

Kearney Consulting's research shows that taking a company with an annual revenue of 50 billion yuan as an example, every 1% reduction in supply chain costs means an increase in profits of at least 20 million yuan.
[4]

On the one hand, the supply chain will increase profits, and on the other hand, the supply chain will reduce the unit price of products.
In the category of hanging ear coffee, "large quantity" is almost equal to "excellent price".

Aurora research data shows that consumers under 18 and over 41 are relatively more sensitive to coffee prices.
[2] They also happen to be the main crowd of coffee consumption.

Therefore, in the coffee market, products that are both cost-effective and high-quality are undoubtedly very competitive.

Moreover, the vision and mission of Sumida River Coffee is to "let every Chinese drink healthy and good coffee", so the key path is preservation technology.

In Sumidagawa's view, only the continuous development of fresh-keeping technology can enable the "retailization" and "industrialization" of freshly ground coffee, significantly reduce costs, improve cost performance, and expand consumer groups.

What are the advantages of Sumida River’s supply chain?

What are the advantages of Sumida River’s supply chain?

According to industry insiders, in the early development and production stage of hanging ear coffee, the largest proportion of cost is actually the packaging cost, followed by labor costs, and then the coffee powder itself.
[5] These three parts are precisely the areas where Sumida River has cultivated for many years and accumulated a lot of experience.

Sumida River Capsule Fresh Coffee Liquid

Image source: Sumida River Coffee

First of all, as mentioned above, Sumidagawa's products can guarantee a great degree of freshness, precisely because of the use of the world's advanced nitrogen lock fresh technology.

Sumida River product residual oxygen test report

Image source: Sumida River Coffee

Even for freeze-dried coffee, which cannot be guaranteed to be "fresh" due to technical reasons, Sumida River also chooses to cooperate with Brazil, Colombia and other countries of origin to ensure as fresh as possible through a strong supply chain.

Advantages of Sumida River's Original Bean Producing Area

Image source: Sumida River Coffee

Secondly, according to Sumida River, most of the domestic roasting equipment is 50kg, and Sumida River can reach 200-320kg, and the master involved in roasting is a "coffee maker" with 37 years of roasting experience.

In addition, Sumidagawa has also invested in the construction of a coffee production line mainly for hanging ear coffee and coffee bags.
It will be put into production in mid-2021.
After all delivery, it is expected that the annual output will reach 1.
3 billion packs, which is the leading domestic level.

It is precisely because of such a strong supply chain strength that Sumidagawa can realize the simultaneous efforts of three product sections of hanging ear fresh coffee, capsule fresh coffee liquid, and freeze-dried coffee to make fresh and delicious coffee.
The coffee production line invested and constructed by Sumida River this time will also fully learn from Japan's advanced experience and improve the level of the domestic industrial chain.

Sumida River: Make 300 million cups of fresh coffee with sentiment and warmth

Sumida River: Make 300 million cups of fresh coffee with sentiment and warmth

It can be said that coffee retail has been on fire from the beginning of 2020 to the end of the year.
In the fierce market competition, how to seize the minds of consumers is an eternal topic.
The way Sumida River connects with consumers is unique.

Sumida River was originally a cafe in Japan.
It was located in the American Village, a fashionable landmark in Osaka.
Since the operating team is a street dancer group, all kinds of street dance games can be described as easy to use.
It didn’t take long for Sumida River Osaka store to become Japan’s “fashion coffee landmark”.
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Going down this route can also be loved by consumers, but Sumida River has a greater pursuit.
Lin Hao, the founder of Sumida River, once said: "The coolest thing is not the complacency of niche feelings, but to change the lives of the people.
"

Therefore, in addition to spreading the "fashion coffee culture", Sumida Chuan has a new vision and mission-to let every Chinese drink healthy and good coffee.

Perhaps because of such trendy genes and feelings, Sumidagawa's brand activities also appear to be both cultural and artistic.

For example, Sumidagawa recently teamed up with FEVER, a pioneer electronic music brand under NetEase, to launch a "listenable" coffee.

Sumida River cooperates with NetEase's electronic music brand Fangcai FEVER

Image source: Sumida River Coffee

An electronic music creation competition was held at the Fangcai Electronic Music Institute of Netease.
The 3 electronic music works that finally broke through were printed in the packaging in the form of QR codes.

Sumida River cooperates with NetEase's electronic music brand Fangcai FEVER

Image source: Sumida River Coffee

I rushed to a cup of Sumida River fresh coffee that was full of aroma, scanned the QR code on the box, and put on headphones.
The taste and hearing enjoyment stirred each other, which is a unique and wonderful experience.

Moreover, Sumida River also matched different types of coffee with different styles of electronic music.
Coffee fans and music fans can get their own enjoyment during the time of brewing this cup of coffee.

In addition to trendy culture, Sumida River also wants to combine coffee to convey an extra level of temperature to consumers.
For example, their "a cup of fresh coffee, warm the way home" charity event.

Sumida River "A cup of fresh coffee, warm the way home" charity event

Image source: Sumida River Coffee

Sumida Chuan, together with the Himalaya APP and Cao Cao Travel, donated 7000+ cups of coffee to the medical staff fighting on the front line, 10000+ cups of coffee to the driver, and 300,000+ cups of coffee for free through the anchor on the Himalaya APP.
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Sumida River "A cup of fresh coffee, warm the way home" charity event

Image source: Sumida River Coffee

Sumida River also mentioned to us before: "Many of the coffee drinkers are college entrance examinations, postgraduate entrance exams, or young white-collar workers.
Our passion is to provide them with fresher, healthier, and better quality products.
Let them fight the night.
, You can have a cup of really healthy and delicious fresh coffee on hand.
"

Conclusion

Conclusion

According to IT Orange data, among the 19 financing events that occurred from 2019 to November 2020, 12 financing events occurred in retail coffee, accounting for 63% of the total financing events, of which specialty retail coffee is the most popular.
[6] The coffee track is undoubtedly promising.

Sumidagawa’s signing of the Hangzhou Asian Games this time also makes us expect more and more domestic coffee brands to draw their own strong and colorful strokes on the world coffee stage.

Source: FBIF Food and Beverage Innovation

Note: All pictures in the article are reprinted on the Internet, and infringement will be deleted!

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