Mixue Taps Beer Market With $41 Million Deal for CEO’s Wife’s Firm
Chinese beverage giant Mixue Group is entering the craft beer market by acquiring a majority stake in a fast-growing brewer founded by its chief executive’s wife, a move designed to create a new growth engine as its core tea-drink business slows.
Mixue Group, known for its low-priced ice cream and tea, announced it will pay RMB 297 million yuan (US$41 million) for a 53% controlling stake in Fulujia Fresh Beer. The deal marks the company’s first major acquisition since its public listing in March 2025 and sent the topic "Mixue is going to sell beer" trending on social media.
The transaction has drawn scrutiny over its valuation and related-party nature. Fulujia Fresh Beer was controlled by Tian Haixia, the wife of Mixue CEO Zhang Hongfu, and the acquisition price implies valuation multiples significantly higher than those of publicly traded beer companies.
The move signals Mixue’s ambition to build an all-day beverage empire, leveraging its formidable supply chain and retail network to capture a share of China’s rapidly expanding fresh beer market. It follows similar forays into the coffee sector as the company diversifies beyond its flagship products.
A High-Priced Family Affair
The acquisition was structured as a combination of a capital increase and a share transfer. Mixue will inject RMB 285.6 million in cash for a 51% stake and purchase an additional 2% from an independent shareholder for RMB 11.2 million. Following the transaction, Fulujia will be consolidated into Mixue’s financial statements.
The deal valued Fulujia at an implied price-to-earnings ratio of approximately 523 times and a price-to-book ratio of around 29 times. These figures starkly contrast with the A-share and H-share listed beer sector, which trades at an average P/E ratio of under 30 times and a P/B ratio of about 2.5 times.
Mixue stated the valuation was based on a recommendation from an independent third party, which used an Enterprise Value to Last-Twelve-Months Revenue multiple due to Fulujia’s unstable profitability. The company also noted that CEO Zhang Hongfu recused himself from the board vote on the acquisition.
Big Payday for CEO’s Wife
For Tian Haixia, the deal represents a significant return on her investment. Before the transaction, she held a combined stake of over 80% in Fulujia. After the deal, her direct and indirect holdings will drop to just under 40%, but she remains the second-largest shareholder with a stake valued at approximately RMB 220 million. This translates to an overall investment return of about 8.2 times her initial capital.
Another shareholder, Zhao Jie, who had acquired a 15.01% stake in Fulujia just over a month prior, sold 2% to Mixue for RMB 11.2 million, retaining a stake now valued at about RMB 30 million.
Tian has been a pivotal figure in Mixue's history, having encouraged Zhang Hongfu to drop out of school and become one of the franchise's first operators. The Zhang brothers, Zhang Hongchao and Zhang Hongfu, were ranked as the new richest men in Henan province in the 2025 New Fortune 500 Rich List with a fortune of RMB 117.94 billion.
An Incubated ‘Brother Brand’
Analysts suggest the acquisition resembles the formal absorption of a business that was incubated "off-balance-sheet" by a related party. This strategy allows a new venture to be de-risked and its business model proven before being acquired by a listed company, minimizing short-term impact on the parent's profits.
Prior to the acquisition, Fulujia and Mixue shared deep operational ties despite having no formal equity relationship. Fulujia’s headquarters are located in Mixue’s global headquarters building, and it utilizes Mixue’s supply chain and cold-chain logistics. Fulujia’s marketing materials have even referred to it as a "brother brand" of Mixue, and some of its offline stores used slogans like "A craft beer brand under Mixue."
Fulujia’s business model mirrors Mixue’s, focusing on low prices, a franchise-led expansion, and a similar red-and-white brand aesthetic. It has expanded rapidly to about 1,200 stores across China as of August 2025.
A Strategic Pivot to Beer
Mixue’s move into beer is driven by a need to find a "second growth curve" as its home market for freshly-made tea drinks shows signs of saturation. According to the China Chain Store & Franchise Association, the growth rate of the new tea-drink market is projected to slow to 12.4% in 2025 from 44.3% in 2023.
In contrast, the craft beer market is booming. China's craft beer market is expected to approach RMB 100 billion in 2025 with a compound annual growth rate exceeding 30%, according to a report from the CIConsulting research institute. The acquisition was also timed as Fulujia turned a profit of RMB 1.07 million in 2024, reversing a loss from the previous year.
Mixue plans to leverage its supply chain to reduce Fulujia’s raw material procurement costs and cut logistics spoilage rates for fresh beer from a sector average of 8% to below 3%. Beer is also seen as a potential new driver for Mixue’s international expansion, particularly in Southeast Asia, where the company has a growing presence and beer consumption is high.
New Market, New Challenges
Despite the strategic logic, Mixue’s path in the beer industry is not without obstacles. Fresh beer consumption is concentrated in the evening, contrasting with the all-day demand for tea and ice cream, which presents operational challenges for stores that may sell both. The introduction of alcohol could also affect Mixue’s family-friendly brand image.
Furthermore, maintaining quality and freshness across a vast network of thousands of stores, especially in more remote areas, will test the limits of Mixue's supply chain management. The fresh beer market is also increasingly crowded, with established craft players like Taishan Craft Brewery and competition from giants like CR Snow and Tsingtao Brewery, which are expanding into the segment.
Even so, the acquisition solidifies Mixue’s narrative of building a comprehensive beverage platform that aims to serve consumers’ needs around the clock.