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Mixue Ice Cream & Tea

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This article is about the Chinese dessert chain. For the Chinese musical artist, see Mi Xue.
Mixue Ice Cream & Tea
Native name
Chinese蜜雪冰城股份有限公司
Literal meaningMIXUEBINGCHENG Co., Ltd.
IndustryFood and drink
FoundedJinshui District, Zhengzhou, Henan, China
(June 1997 (1997-06))
FounderZhang Hongchao
Number of locations
22,276[1]: 129  (2022)
Area served
China, Hong Kong, Australia, South Korea, Japan, Thailand, Laos, Singapore, Indonesia, Cambodia, Myanmar, Malaysia, Philippines, and Vietnam
Key people
Zhang Hongchao (President Director)
ProductsIce cream, bubble tea, and tea
RevenueRMB10.4 billion[1]: 272  (2021)
RMB2.57 billion[1]: 272  (2021)
RMB1.91 billion[1]: 273  (2021)
Websiteen.mxbc.com

Mixue Ice Cream & Tea (Chinese: 蜜雪冰城; pinyin: Mìxuě Bīngchéng; lit. 'honey snow ice city') is a Chinese franchise of ice cream and iced tea chain stores founded in 1997 by Zhang Hongchao in Zhengzhou, Henan province. After more than 20 years of development in China, Mixue Ice Cream & Tea has 22,500 stores covering 31 provinces and autonomous regions and is actively exploring overseas markets. They opened their first outlet in Vietnam in 2018, and another first outlet in Indonesia in 2020. Today, there are around 1,000 Mixue outlets that operate in several Southeast Asian countries, including the Philippines, Thailand, Vietnam and Indonesia.[2][3][4]

Introduction

In 2018, Mixue launched a new brand image, Snow King, with "I love you, and you love me, just like sweet desserts in the Mixue" as its brand slogan.[5]

Mixue Ice Cream & Tea is managed jointly by three major companies, Mixue Ice Cream & Tea Co., Ltd., Henan Daga Food Co., Ltd., and R&D production. Shangdao Intelligent Supply Chain Co., Ltd. provides storage and logistics services.[2]

In October 2021, Mixue Ice Cream & Tea Co., Ltd. intended to issue and list its shares in the A-share market, receiving guidance from Guangfa Securities.[6]

History

Mixue's Mascot; "Snow King" (雪王)

Zhang Hongchao was originally from the countryside. As an early start-up owner, Zhang's shops were closed three times and forcibly demolished four times. After graduating from junior high school, Zhang Hongchao walked the streets, repaired motorcycles, and worked as a food clerk and farmer. In 1996, through self-study, Zhang entered Henan University of Economics and Law.[7]

Zhang's hometown's snack, shaved ice, sprouted his idea to open a shop. In 1997, Zhang Hongchao borrowed 3000 yuan from his grandmother and set up a street stall in Zhengzhou to sell cold drinks, which is often referred to as the predecessor of "Mixue". Because of lack of experience, Zhang Hongchao had closed 3 stores in a little more than a year. Frustrated, Hongchao went to Hefei to sell ice sugar gourd. He again failed.[8] In the spring of 1999, Zhang Hongchao returned to Zhengzhou to start a new cold drink shop, also named "Mixue Ice Cream & Tea".

However, entrepreneurship was catching up with the high-speed development period of China's urbanization and old city reconstruction in Zhengzhou.[8] Because of the location problem, four of Zhang's stores got demolished over four years. In August 2003, Zhang found an abandoned aluminium factory and then looked for villagers to borrow money, and when he had enough funding, he decorated the store.[9] Because Mixue Ice Cream & Tea had always been near a school, it accumulated a good reputation and following among students. Zhang's life and career gradually stabilized, with his customers being primarily students.[10][11]

Development

In 1997, Zhang Hongchao thought of the way to start a business.[12][7]

In 2000, Mixue Ice Cream & Tea officially opened.[12]

In 2003, in the early days of the business, Zhang Hongchao experienced six relocations, and the company's condition gradually improved.[8]

In 2006, Mixue Ice Cream & Tea's fresh ice cream was introduced.[13]

In 2007, Mixue Ice Cream & Tea opened its new ice cream shop, and in the same year, Mixue Ice Cream & Tea opened its franchise business.

In 2008, with the increasing number of franchises, Mixue Ice Cream & Tea Trading Co., Ltd. was established, and design enterprise VI officially unified all franchise store images.[14]

In 2012, Henan Daga Food Co., Ltd. was established; Mixue Ice Cream & Tea realized the core raw material self-production and has several patented technologies.

In 2014, Mixue Ice Cream & Tea Logistics Park was implemented, and the free distribution was implemented to realize the strategic plan of One Zhengzhou City in China. At this point, the Mixue Ice Cream & Tea headed for the whole country.

On September 5, 2018, the first foreign store opened in Hanoi, Vietnam.[15]

In November 2018, a new brand image, Snow King, was officially launched.[16]

On May 24–26, 2019, the first ice cream music festival was held in Opalala Water Park, Zhengzhou. The festival received more than 30,000 visitors and gave the audience a full-scale eating and drinking experience.[17]

On June 24, 2020, the 10000th store opened grandly in Yuanyang County, Henan, Xinxiang.[18]

A Mixue outlet in Karawaci, Tangerang, Indonesia

On 2020, Mixue opened their first branch in Indonesia, located in Cihampelas Walk, Bandung.[4]

Mixue also opened hundreds of outlets in other Southeast countries such as Malaysia and Singapore,[19] Thailand, Cambodia, Laos, and Myanmar.[20] At the end of 2022, Mixue opened branches in South Korea and Japan.[21][22] In February 2023, Mixue opened their first store in Sydney, Australia.[23][24]

On September 30, 2021, Mixue intends to make an initial public offering and go public on the stock market.

In April 2022, in response to the COVID-19 pandemic, a one-year reduction in the total amount of RMB200 million will be made for all franchisees in operation until December 31, 2021. In addition, introducing a "more than 50% material reduction" policy, including ingredients, packaging materials, consumables, machinery, and more than 50% of the store materials will be reduced.[25]

In 2022, Mixue Ice Cream & Tea purchased more than 9000 tons of tea, driving more than 50,000 tea farmers to increase their income. To provide a platform for more than 11,000 franchisees to start their own businesses and create more than 500,000 jobs in the entire industrial chain. The first 6.5 million yuan "Mixue Ice Cream & Tea Scholarship" was launched in five universities in Henan Province.[26]

From April 30 to May 1, 2023, the Mixue Ice Cream & Tea Ice Cream Festival opened in Mayan Beach Water Park in Wuhan, Hubei Province.

In June 2023, Mixue opened their first store in Melbourne, Australia. As of September 2023, Mixue has also opened stores in Sydney and Brisbane.

Commonwealth

In January 2020, Zhengzhou Cross-Straits Enterprise Management Co., Ltd. (Mixue Ice Cream & Tea) donated RMB6 million to Henan Provincial Charity Federation and RMB1 million to Wenxian Red Cross to support the resistance to COVID-19.[27]

In Anyue, Mixue Ice Cream & Tea built its base with more than 6,500 fruit farmers supplying Mixue Ice Cream & Tea with lemons each year. At the same time, as the development of the enterprise, the city will continue to implement the strategy of agriculture and rural revitalization and help more fruit farmers to generate and increase income.[28]

In July 2021, Henan Province was hit by extreme rainfall, which was rare in its history, and Zhengzhou and other places were hit by severe floods. Mixue Ice Cream & Tea headquarters in the disaster center actively launched rescue and disaster relief operations. Mixue Ice Cream & Tea Co., Ltd. to Zhengzhou Charity Association donated 20 million yuan in cash, and wholly-owned subsidiary Daga International Food Co., Ltd. to Henan Wenxian donated 2 million yuan. Subsequently, a million yuan was presented to the charitable associations of Zhoukou, Xinxiang, Hebi, and Anyang. A total of 26 million yuan was donated. And the first time to set up a relief command center, mobilizing all the warehouses in China to aid the disaster-stricken areas.[29][30]

Controversies

Food safety

In December 2022, journalists from the Beijing News randomly entered two stores in Nanjing, Jiangsu Province, where they found problems such as using discarded ingredients, cutting materials, and not signing labor contracts, the newspaper reported in March 2023. As of March 14, 2023, the number of complaints on the Black Cat Complaint Platform alone reached 4435, and were mainly food safety issues.[31]

Illegal use of child labour

According to China's national law, minors who are under the age of 16, cannot be "recruited" for work, and the labor and social security administrative department can impose a penalty of 5,000 yuan per month for each child laborer hired.[32][33][34] On April 2, 2022, a Tiantai County's Mixue drink shop, after hiring a "15-year-old girl", was fined 12,500 yuan for the illegal use of child labor, by the local comprehensive administrative enforcement bureau.[35] The owner of the punished franchise store, had admitted wrongs in an interview with the media, and said he realized his mistake to hire the 15-year-old minor to work at his shop, but claimed that the minor had been abandoned by her family, and so he sympathetically let her work at his store, but confirmed that she had since left.[32]

In July of the same year, Liaocheng Chiping County Mixue drink shop was fined 5,000 yuan for illegal use of child labor.[36]

In April 2023, the Mudanjiang Dongan District Mixue Beverage Street Zhongdian and Mixue shop, was fined 5,000 yuan for the illegal use of child labor for seven days.[citation needed]

Halal certification in Indonesia

Mixue products in Indonesia are certified Halal after the LPPOM MUI (Institute for Food, Drugs and Cosmetics Assessment of the Indonesian Ulema Council) issued halal certification of ingredients used in the production of their products in February 2023.[37][38]

Before certification, Indonesians had questioned about the absence of halal certification in Mixue's products.[39] According to PT. Zhisheng Pacific Trading (the franchiser of Mixue Indonesia), Mixue Indonesia has made efforts to obtain halal certification since 2021. However, the certification process was halted in the halal consultation stage due to the fact that 90% of Mixue's ingredients are from China. The source of the ingredients that are not centralized in one whole region; quarantine, strict health measures and protocols due to the COVID-19 pandemic in China has also caused problems for the management.[40][better source needed][41] In response to this, the Halal Product Assurance Organizing Body and the Ministry of Religious Affairs have requested that Mixue to not put halal signage before Halal certification is complete.[42][43]

References

  1. ^ a b c d 蜜雪冰城股份有限公司首次公开发行股票招股说明书 (PDF) (in Chinese). 2022-09-14.
  2. ^ a b "蜜雪冰城—since1997 冰淇淋与茶连锁品牌". www.mxbc.com. Retrieved 2023-05-30.
  3. ^ Rakhmat, Muhammad Zulfikar; Purnama, Yeta (2023-07-17). "Mixue on the march: ice cream serves soft power for China in Southeast Asia". The Conversation. Retrieved 2023-07-20.
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  5. ^ 窄门餐眼 (2022-11-18). "2022年全球排名100连锁餐饮品牌榜单揭晓". www.foodtalks.cn. Retrieved 2023-06-23.
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  18. ^ 彭华 (2020-06-24). "蜜雪冰城门店规模破万，河南品牌走向全球_央广网". hn.cnr.cn. Retrieved 2023-06-07.
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  28. ^ KJ005 (2021-08-10). "助力乡村振兴！蜜雪冰城冰鲜柠檬水成为主打产品的秘密在这里_中华网". tech.china.com. Retrieved 2023-06-07.{{cite web}}: CS1 maint: numeric names: authors list (link)
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  31. ^ 迟道华 (2023-03-15). "蜜雪冰城不要在食品安全问题上屡屡翻车 | 新京报快评". www.bjnews.com.cn. Retrieved 2023-06-23.
  32. ^ a b laitimes (2022-04-08). "Franchise stores were exposed to use child labor 20,000 Michelle Ice City is sprinting for an IPO". laitimes. Retrieved 2023-11-14.
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  36. ^ 三言财经 (2022-07-13). "蜜雪冰城门店再因违法使用童工被罚". finance.sina.com.cn. Retrieved 2023-06-23.
  37. ^ "Tetapkan Kehalalan Mixue Ice Cream & Tea, MUI: Produknya Halal dan Suci". Majelis Ulama Indonesia. 2023-02-16. Retrieved 2023-02-18.[dead link]
  38. ^ Situmorang, Hendro D. W. I. R. (ed.). "MUI Paparkan Proses Mixue dalam Mengajukan Sertifikasi Halal". beritasatu.com (in Indonesian). Retrieved 2023-02-18.
  39. ^ Henry (2022-12-29). "Sudah Buka di Banyak Tempat, Mengapa Mixue Indonesia Belum Tersertifikasi Halal?". liputan6.com (in Indonesian). Retrieved 2022-12-29.
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  41. ^ Utami, Sinar. Fajri, Moh (ed.). "Es Krim Mixue Indonesia Belum Bersertifikasi Halal, Ini Penjelasan Manajemen". kumparan (in Indonesian). Retrieved 2022-12-29.
  42. ^ Rahayu, Lisye Sri. "Kemenag: Belum Punya Sertifikat, Mixue Jangan Pasang Logo Halal!". detiknews (in Indonesian). detikcom. Retrieved 2023-01-02.
  43. ^ Firmansyah, Asep (2023-01-02). Hadi, Bambang Sutopo (ed.). "Kemenag: Mixue belum bersertifikat halal, tak boleh pasang logo halal". antaranews.com. Retrieved 2023-01-02.
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