Core Viewpoint - The article highlights how Heytea has successfully implemented a differentiated strategy by focusing on upstream supply chain management to achieve zero pesticide residue in its kale sourcing, thereby enhancing product quality and safety in the competitive new tea beverage industry [1][10][33]. Group 1: Supply Chain Management - Heytea has established a kale planting base in Yunnan Shiping, leveraging the region's unique climate and soil conditions to produce high-quality kale [11][19]. - The company has implemented modern agricultural facilities and biological pest control techniques to ensure zero pesticide residue, including the use of plant-based pesticides and organic fertilizers [11][19]. - Heytea's supply chain strategy includes a shift from standard procurement to customized planting, allowing for better control over raw material quality and traceability [23][25]. Group 2: Product Innovation - The introduction of the "Kale Slimming Bottle," a plant-based tea product featuring kale, has sparked a trend in the new tea beverage industry, leading to significant sales and increased consumer interest [7][10]. - The demand for kale has surged, with prices rising from a few yuan per pound in 2023 to 20-30 yuan per pound, and market share increasing from 5% to 55% [10][14]. - Heytea continues to innovate by incorporating other super plants and regional specialty ingredients into its product offerings, enhancing the brand's health-focused image [30][33]. Group 3: Industry Trends - The new tea beverage industry is evolving from a focus on volume competition to a deeper emphasis on quality, as companies like Heytea seek to differentiate themselves in a saturated market [28][33]. - The trend of "customized planting" is emerging as a key strategy for new tea beverage companies to ensure stable supply and improve product quality [15][25]. - Heytea's commitment to quality and natural ingredients reflects a broader shift in consumer preferences towards healthier and more transparent food options [29][33].

Core Insights - Kale has transformed from a niche ingredient in Western cuisine to a popular raw material in the new tea beverage industry in China since the Tokyo Olympics, with over 30 kale-based drinks currently available on the market [1] - The demand for kale has surged, leading to a significant price increase from single-digit prices per pound in 2023 to 20-30 yuan per pound [1] - Companies like Heytea are raising their standards for raw materials, opting for customized, zero-residue kale to meet the quality demands of the new tea beverage sector [1][4] Industry Trends - The expansion of kale cultivation is underway, with a focus on exploring different varieties and quality improvements [1] - Heytea's kale is sourced from a unique growing environment in Yunnan, benefiting from a favorable microclimate and rich soil conditions [3] - The company implements rigorous quality control, including over 800 third-party pesticide residue tests to ensure compliance with national and European standards [4] Supply Chain Dynamics - The shift from standard procurement to customized planting reflects the evolving needs of new tea beverage companies, which require specific fruit characteristics for their products [4][5] - Heytea's procurement strategy now involves deep engagement in the cultivation process, including setting planting standards and managing harvests to ensure optimal quality [4][5] - This trend benefits not only the beverage brands but also local farmers, providing them with stable sales and pricing through long-term contracts with new tea beverage companies [5]

Group 1 - The core idea of the articles revolves around Heytea's strategic shift towards upstream agricultural practices, including establishing over 10,000 acres of order agriculture cooperative orchards across various fruit production areas in China, from Liaoning to Hainan [1][11] - Heytea is focusing on customized planting to ensure a stable supply of seasonal fruits, emphasizing zero pesticide residue cultivation methods to enhance the nutritional quality and flavor of their fruit teas [1][10] - The popularity of kale as a cross-category beverage has surged, with Heytea's kale drinks becoming a phenomenon, leading to significant sales figures and expansion into international markets [2][4][7] Group 2 - The supply chain for kale involves meticulous processes, including daily harvesting, rapid cooling, and strict quality control measures to ensure freshness and minimize waste [8][10] - Heytea's collaboration with farmers aims to stabilize their economic returns while ensuring high-quality produce, with a focus on maintaining a balance between agricultural practices and market demands [11][12][13] - The company has also ventured into dairy innovation, launching a product that meets strict health standards, furthering its commitment to natural and healthy offerings [14]