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When milk tea brand 9Cha launched in 2019, its founders had their eyes firmly set on the Asian market. COVID-19 forced a rethink. Kim Berry writes. This article first appeared in the August 2021 issue of Food and Drink Business.

For Sean Issell and Jay Shao the potential of the bubble/milk tea market was ripe for the taking. Globally it is projected to be worth around $4.5 billion by 2023 and for Issell and Shao, the opportunity to create an Australian brand utilising its reputation for high quality ingredients seemed obvious.

“Initially we were focused on the international market and have since established in six countries throughout Asia, but there was a gap in the domestic market for an ambient ready-made milk tea,” Issell says.

The arrival of COVID-19 put the brakes on being able to build connections with overseas retailers, so the pair turned their focus to local possibilities.

9CHA was first released in a 250ml pouch with three unique flavours: Original, Wildberry, and Jasmine. A no-added sugar version was added because two of its original export markets – Malaysia and Brunei – have a sugar tax.

“It took twelve months of R&D to develop. Those markets have a ten per cent sugar tax if the beverage has more than eight per cent sugar. Because milk has natural sugars in it, we now have a no-added sugar option in our new 500ml bottle range that tastes good, is nutritious, and has less sugar than a traditional flavoured milk,” Issell says.

The pouches have 65 per cent less sodium, 35 per cent less sugar, and 50 per cent less fat than other dairy RTDs, while the No Added Sugar range has up to 70 per cent less sugar.

Cracking the Australian market has taken some consumer education, Issell says. “For those familiar with Asia-style milk teas, it has been easy, but for people new to the concept, it is taking some getting used to. Packaging has been key for us in this regard, we had to go to a format they were familiar with.

“The pouches in the Asian section of the supermarket were fine because they appeal to those who know the beverage style, but for the mainstream market, it had to be in a format they were familiar with.”

He says their customers cross market segments, from male tradespeople looking for a healthier take on a flavoured milk to 14-24-year-olds looking for a refreshing and better-for-you beverage. “We’re fulfilling a need not met by the dairy industry,” Issell says.

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