Born in Shanghai, Booming in Shandong: The Surprising Success of Auntea Jenny

IPO Race Heats Up: Why is Shanghai Brand Auntea Jenny a Shandong Sensation?

Auntea Jenny (Shanghai) Industrial Co., Ltd. has officially filed for an IPO on the Hong Kong Stock Exchange, joining a wave of Chinese new-style tea brands—including ChaPanda, Gomay, and Mixue Ice Cream & Tea—seeking to go public.

But there’s a fascinating twist to Auntea Jenny’s story. While founded in Shanghai, the brand’s largest and most successful market is hundreds of miles away in Shandong province. What’s behind this surprising success?

A Shanghai Brand with Shandong Roots

As of September 2023, Auntea Jenny operates the fourth-largest tea shop network in China with 7,297 stores. Strategically, 3,752 of these are in northern China, making it the #1 mid-priced tea brand in the North.

Mid-priced tea brands are defined as those with an average product price between 10 and 20 RMB (approx. 1.40−1.40 - 1.40−2.80 USD).

Within this northern stronghold, Shandong stands out with 1,024 locations—the only province where Auntea Jenny has surpassed the thousand-store mark.

The reason for this regional dominance is surprisingly personal. Although Auntea Jenny was founded in Shanghai, its founders have deep connections to Shandong. Co-founder Shan Weijun and his wife, Zhou Rongrong (a Shandong native), lived and worked in the province for years before starting their entrepreneurial journey.

In 2013, after launching their first store in Shanghai, they made a strategic decision to expand into Shandong early, opening a shop in Zhou Rongrong’s hometown of Yantai. "We wanted to give back to the place where we lived for over a decade," Shan once explained.

This early foothold gave them a massive first-mover advantage. According to franchise recruiters, the market in most Shandong cities is now saturated, making it difficult for new competitors to find prime locations.

A Smart Product Strategy for Nationwide Expansion

Auntea Jenny's initial menu was perfectly suited for its northern expansion. The brand became famous for its unique "Five Grains Milk Tea," featuring ingredients like purple rice, red beans, and oats. These warm, hearty drinks were an instant hit in the colder northern climate.

Recognizing the growing demand for fresh fruit teas across China, the company expanded its menu in 2019. This move allowed Auntea Jenny to rapidly grow its footprint nationwide, particularly in southern markets. Today, its top three provinces by store count are Shandong (1,024), Guangdong (840), and Anhui (521).

Clash of the Titans: Which Tea Brand is Most Profitable?

With Auntea Jenny’s filing, four of China's top five tea brands are now racing to the public market. Except for the low-priced Mixue, the other three (Auntea Jenny, Gomay, ChaPanda) compete in the mid-priced category. Let's compare their financial performance.

By Revenue and Profit (2022):

1. Mixue Ice Cream & Tea: With its massive store count, Mixue leads with ¥13.58B in revenue and ¥2.01B in profit.
2. Gomay: ¥5.56B revenue, ¥372M profit.
3. ChaPanda: ¥4.23B revenue, ¥965M profit.
4. Auntea Jenny: ¥2.20B revenue, ¥149M profit.

Unsurprisingly, revenue and profit align with the total number of stores. However, the story changes when we look at profitability.

By Profit Margin (2022):

• ChaPanda: 22.8%
• Mixue Ice Cream & Tea: 14.8%
• Auntea Jenny: 6.8%
• Gomay: 6.7%

Despite having fewer stores than Gomay and Mixue, ChaPanda emerges as the most profitable brand on a percentage basis.

A Market with Enormous Room to Grow

The Chinese ready-made beverage market is poised for explosive growth. According to a China Insights Consultancy report, the market is expected to surge from ¥421.3 billion in 2022 to ¥1.18 trillion by 2028.

A key driver is এখনো relatively low consumption per capita.

• China (2022): 18 cups per person, per year.
• United States: 322 cups.
• United Kingdom: 222 cups.

By 2028, China's per-capita consumption is projected to nearly triple to 52 cups per year, signaling a massive opportunity for market leaders like Auntea Jenny.