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SHANGHAI: Amanda Wang, co-founder of the Chinese fast-growing beverage chain Ningji Lemon Tea, made four research trips to the U.S. before launching Bobobaba, designed to cater specifically to American tastes.<\/strong><\/p>\n With colourful, Instagram-friendly drinks filled with fruit pieces, boba pearls and cute logos, Wang, whose Chinese brand is backed by Tencent and ByteDance, is among an influx of Chinese tea brand entrepreneurs betting they have what it takes to convert young American coffee and matcha drinkers.<\/p>\n \u201cThe U.S. is a developing country in terms of bubble tea,\u201d Wang told Reuters, adding that the U.S.-centric brand is sweeter than what Ningji offers in China. Another concession needed to be made to the pace of doing business in America, where it\u2019s impossible to open a store within 20 days of signing a contract, as she does in China.<\/p>\n \u201cDoing business here (in the U.S.) is quite different from what we imagined in our heads. It took seven months to open the store, which was quite painful,\u201d Wang said, adding that she has a ten-year plan for cautious expansion in the U.S.<\/p>\n Despite the challenges, companies from Chagee Tea House, Chahalo, Molly Tea and Auntea Jenny \u2013 buoyed by their success in China\u2019s modern tea-drink market and propelled by flavour innovations, fresh brands and rapid store rollouts \u2013 have within the last year opened U.S. stores or announced expansions.<\/p>\n Mixue, which has leveraged its $1 fruit teas to become the world\u2019s largest food and beverage chain by stores, with over 53,000 locations globally, announced a ten-year storefront lease in New York City in September.<\/p>\n \u201cEveryone is looking at the U.S. as a potential market,\u201d said Felix Lin, the CEO of a Nevada-based distributor for Asian food products, HF Foods, who said he has received a growing number of calls from Chinese food and beverage chains.<\/p>\n Chagee, which listed on the NASDAQ in April, has over 80 personnel working full-time on the company\u2019s \u201csignificant pipeline\u201d for U.S. expansion, Emily Chang, the company\u2019s top U.S. executive, told Reuters in November. It plans to open a large flagship store in the heart of Silicon Valley next year.<\/p>\n Chang, previously an executive at Starbucks China, said part of Chagee\u2019s plans includes a public campaign to promote tea among U.S. consumers and to establish it as a new product category. This mirrors how Starbucks popularized coffee in tea-drinking China nearly 30 years ago. In November, Chagee launched the \u201cevening tea service,\u201d a bespoke experience that offers a flight of three teas and a tea sommelier, in part to show U.S. consumers that tea can be enjoyed in the evening. Demand for coffee tends to drop off in the early afternoon, Chang said.<\/p>\n Most of these brands have found success beyond China\u2019s highly-competitive market, where annual revenues for tea-drinks will exceed 30 billion yuan ($4.2 billion) this year, per estimates from Hongcan Research Institute. They have also already expanded to Southeast Asia, and other nearby Asian markets \u2013 such as Australia. Some also have begun building a presence in the Middle East and Europe.<\/p>\n Wang is in no doubt that the opportunity for tea brands in America\u2019s large, stable consumer market is vast, though she knows it won\u2019t be easy.<\/p>\n \u201cCulture and brand awareness are the biggest challenges,\u201d she said. \u201cBuilding trust takes time.\u201d<\/p>\n<\/div>\nATTEMPTING TO TRANSFORM THE US BEVERAGES MARKET<\/strong><\/h2>\n