Moutai-flavored latte brews record sales, controversy

By Intern Yang Xinyu

(ECNS) -- When the Moutai-flavored latte, a co-branding between Luckin Coffee and Kweichow Moutai, launched on Monday, it exceeded sales of1 billion yuan (approximately $136 million), and elicited diverse opinions.

Record-breaking sales, viral social media posts, but divided opinion

Many Luckin Coffee stores experienced a surge in orders for the Moutai-flavored latte, with many customers reporting that their usual 10-minute wait time had extended to an hour on theday.

According to official mini-programs of Luckin Coffee, the latte was sold out in many storeson Monday afternoon. Some customers even complained that, due to their late orders, they missed out on the specially designed packaging, which madethe “coffee no longer appealing.”

Ding Xiongjun, chairman of Moutai Group, mentioned that the Moutai-flavored latte uses IIAC Gold Award coffee beans and Kweichow Moutai with an alcohol content of 53% vol. After hundreds of adjustments by professional teams, the beverage achieved a perfect fusion of rich baijiu, colorless Chinese liquor, flavor and the aroma of coffee.

It is reported that the Moutai-flavored latte has an alcohol content of less than 0.5%. It is sold at a retail price of 38 yuan, with a discounted tag of 19 yuan per cup.

On Weibo, a Twitter-like platform in China, several related topicshave trended, like #Luckin's response to whether you can drive after drinking Moutai-flavored #coffee.

Netizens humorously joked about Luckin for “marrying” into a “wealthy family,”as KweichowMoutai is known as an upscale brand. Others commented that Moutaileft people feelinga bit tipsy, but the coffee kept them alert, making it an ideal Monday beverage.

China News Service interviewed consumers who had already tried the beverage, and their opinions were polarized.

Some said, "Maybe it is because I enjoy the taste of liquor-filled chocolates from my childhood,I find the coffee tastes pretty good," and "It leaves me with a mild sense of tipsiness, but that’s all."

Others found it excessively sweetand cloying, expressing reservations about repurchasing.

On Weibo, a small poll asking, "Is the Moutai-flavored latte delicious?"showed, as of 9:45 p.m.on Monday, 4,234 votes in favor of it being delicious and 4,517 votes against, with 16,000 votes from people who hadn't tried it yet.

Controversy matters more than flavor

Regarding the polarized taste opinions on the latte, industry insiders told China News Service that the taste itself isn’t the primary concern, but rather the controversy surrounding it.

The collaborationbehind this new product can be seen as an effective marketing strategy between Luckin Coffee and Moutai.

Zhu Danpeng, a Chinese food industry analyst, told China News Service that in an era whereChina's fast-moving consumer goods industry is highly homogenized and competitive, such collaborationcan provide companies with a differentiating advantage and helpexpand their consumer base.

He added that this partnership allows Moutai to improve its brand's appeal to the younger generation, making its overall product portfolio more diverse. In turn, Luckin Coffee benefits from Moutai's brand recognition.

Zhuang Shuai, the founder of Bai Lian Consulting, also stated that, despite both Moutai and Luckin Coffee having relatively high brand recognition,their customer bases complement each other well.

Cultivating a Moutai-flavored taste for the younger generation

Prior to this co-branding, Moutai had already introduced a series of products, including ice cream, fruit tea, and milk tea, targeting a younger consumer base.

Last year, Moutaicollaborated with Mengniu, a leading Chinese dairy company. According to Moutai's official WeChat account on May 29, in its first year on the market, Moutai ice cream accumulated sales of nearly 10 million cups.

Recently, Moutai also introduced a budget-friendly mini-size ice cream priced at 29 yuan.

Ding emphasized that Moutai ice cream is a strategic product aimed at cultivating the Moutai-flavored taste for young consumers, as capturing the younger generation holds the key to securing Moutai's future.

Zhu noted that this collaboration is another attempt by Moutai to cater toa younger consumer base. However, achieving the company’s vision requires more than just a one-off marketing campaign.It demands long-term marketing strategies and consistent efforts.