Mixue Group Acquires 51% of Fulujia for $40M to Expand Product Range
Mixue Group, a leading food and beverage company, has announced a significant acquisition. It will purchase a 51% stake in Fulujia, a prominent operator of beer-based drink stores in China, for $40 million. This move aims to expand Mixue's product range and customer base.
Fulujia, founded by Tian Haixia in 2010, operates around 1,200 stores across China, selling beer for about 6 to 10 yuan per 500 ml cup. Its revenue for the last 12 months was approximately 150 million yuan, with a price-to-sales ratio of about 3.45 for the acquisition. The acquisition complements Mixue's core offerings of milk teas, ice cream, and coffee, targeting slightly older adults with beer drinks.
Mixue's CEO Zhang Hongfu, who is also married to Tian Haixia, believes this acquisition will help Mixue expand its product portfolio and customer demographics. It will also provide Fulujia access to Mixue's supply and logistic chains and bulk purchasing power. Mixue will fund the acquisition using its own resources, including a cash pile of over 17 billion yuan. Analysts expect this move to help Mixue grow into a more globally influential food and beverage brand.
The acquisition of a 51% stake in Fulujia by Mixue Group for $40 million is expected to bring significant benefits to both companies. Mixue gains access to a new product line and customer base, while Fulujia gains access to Mixue's supply chains and purchasing power. This strategic move aligns with Mixue's goal of becoming a globally influential food and beverage brand.
