Through deep supply chain integration and an interest-aligned franchise model, Mixue, China’s ice cream and milk tea giant, has become the world’s largest F&B chain by store count.
But after reaching over 48,281 stores in China, the question is: how much more can it grow at home? Despite reporting solid half-year earnings, Mixue’s share price has dropped more than 20%, suggesting investors aren’t convinced the domestic market has much room left.
So Mixue is looking elsewhere. International expansion is underway — its coffee affiliate Lucky Cup is entering Malaysia (pictured below), and Mixue itself is opening outlets in Brazil.
Applying Mixue model from milk tea to beer
Now, Mixue is venturing into a new category: beer.
Last week, the company announced the acquisition of a 53% stake in Fulujia, a fast-growing craft beer chain, for RMB 297 million (US$41.7 million).
Fulujia operates 1,200 stores across 28 provinces, selling takeaway craft beer priced between RMB 5.9 and 9.9 (US$0.80–1.40) per 500ml — roughly one-fifth of what you’d pay in a typical bar.
The Fulujia model looks very familiar: franchise-driven expansion and centralized revenue from supplying ingredients and materials.
Stores are small — usually under 10 square meters, with no dine-in service. In many locations, red banners declare proudly: “The craft beer brand under Mixue.”
Fulujia was incubated by Tian Haixia, wife of Mixue’s co-founder Zhang Hongfu. Before the acquisition, Tian owned around 76% of the company.
Like Mixue, Fulujia plays in the mass market — affordable drinks for everyone. The only catch: no alcohol for those under 18.
The picture below shows Fulujia‘s brewery in Henan province, inaugurated in 2023:
Everyone’s getting a little tipsy
Mixue isn’t alone in exploring the “tipsy” trend. Luckin Coffee’s collaboration with Moutai sold a staggering 5.4 million cups on launch day. Meanwhile, Chayanyuese and Chapanda, two major “new tea” players, have also introduced alcohol-infused drinks.
The timing is interesting, though — China’s beer market is actually shrinking. Official data shows beer production fell 0.6% year-on-year in 2024, while industry revenue dropped 5.7%.
So why beer? For Mixue, this could be another scalable, franchisable beverage that fits perfectly into its supply chain machine — low price point, mass appeal, easy replication.
Whether it becomes a meaningful growth driver is another question. But Mixue has shown before that when it finds a formula that works, it can scale it fast — and wide.
Beer might just be its next test.
For more insights about Mixue and its business model, refer to Momentum Works’ report “Who is Mixue”.
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