The pioneer of “beer 3.0” MitUP Exquisite Brew Co., Ltd (Chinese name: Zouqi Qingniang) has recently completed a new round of financing with tens of millions of RMB, led by Fosun RZ Capital, followed by Decent Capital which also invested in the first round last September.
Founded in Beijing in April 2020, MitUP Exquisite Brew is a rising star that is dedicated to inventing and improving new fermentation technology to brew juice-based, gluten-free, low-calorie, and low, or no, alcoholic drinks. Different from beer 1.0 (industrial Lager) and beer 2.0 (craft beer) products, MitUP Exquisite Brew adheres to the principle of brewing with pure natural raw materials, and independently developed the brewing process of using “yeast + gluten-free raw materials”. The company has precisely cut into the beer and low-alcohol segment market by featuring zero gluten, zero sugar, zero pigments, and low purine. Mr. Liu Shuo, the founder of MitUP Exquisite Brew used to work for AB-InBev Global HQ, Heineken China, and Kraft Heinz China in various senior commercial positions. Using Mr. Liu’s experience, the team spent a whole year for product development and upgrading the supply chain, officially began selling by the end of February 2021.
MitUP Exquisite Brew has achieved a cumulative record of nearly 20 million GMV (gross merchandise volume) online + offline, of which online accounted for 80%. The brand continues to maintain high-speed growth. One of the first batches of new products with 20,000 boxes (320,000 bottles) sold out in less than one month after its launch.
Read our report about the low alcohol revolution in China
Generation Z prefers new alcoholic products with 3-8% alcohol content, fruity, and sparkling. In our previous post, we have shared a report about the low alcohol revolution in China. The market size of fruit flavor beer, craft beer, and premixed wine in China is increasing. According to data, the market size of new-style beer and similar beer categories in China is expected to exceed 249 billion RMB (US$38.5 billion) in the coming years. In terms of consumer trends, the demand of the young generation is not just attractive package but also tasty, low-sugar, low-calorie, and low purine products. The young consumers want to enjoy the drinks without worrying about a hangover the next day.
Many new types of low-alcohol drinks appeared in 2020, such as hard seltzer, tea wine, rice wine, etc. How do these low-alcohol drinks create differentiation and product innovation? MitUP has invested most of its financing in product improvement and innovation. In addition, the brand hired well-known winemakers and a chief scientist with nearly 30 years of production and brewing experience to be responsible for the production and brewing.
The new alcoholic drink market is in a fierce competition state. Supply chain, products, and sales channels are determining the market share of the brand. We will follow up on the future performance of MitUP Exquisite Brew.
