In recent times, Kangshifu Ice Black Tea, once regarded as the “national drink” of mainland China, has been reported to have declining sales. Store owners have voiced their concerns, with some stating that they are hesitant to stock up on inventory this year, as there are days when they can’t even sell a whole case. In some convenience stores and supermarkets, Kangshifu Ice Black Tea has been moved from its prominent display positions to the bottom shelves of refrigerators.
According to a report by Shanxi Economic Daily on June 5th, Kangshifu Ice Black Tea was once one of mainland China’s representative bottled tea products. In 1997, Kangshifu introduced PET bottled ice black tea and quickly captured the market with its low-price strategy and marketing campaigns involving winning prizes under the caps. At its peak, Kangshifu Ice Black Tea’s annual sales revenue surpassed billions of yuan, maintaining a significant market position in the bottled tea industry for a long time.
However, nowadays, in various supermarkets, convenience stores, and small shops in Jinan, Shandong, the popularity of Kangshifu Ice Black Tea has declined, and its display locations have changed. A snack shop owner in downtown Jinan mentioned to the media that in past summers, ice black tea was highly favored by construction workers and students, often selling by the crate. But this year, sales have dropped, leading him to be cautious with stocking up, sometimes unable to sell even one crate in a day.
In some stores, the top shelves of the freezer and locations near the cash register have been taken over by other beverages like Oriental Leaf, Vitality Forest, while Kangshifu Ice Black Tea has been relegated to the bottom of the refrigerator. In a convenience store under an office building in the urban area, this drink is even placed in the most hidden corner of the refrigerator, struggling to attract consumers’ attention. Shop assistants mentioned that young professionals tend to prefer coffee, unsweetened tea, energy-boosting drinks, and similar beverages, resulting in a decline in the traditional sweetened ice black tea audience.
Regarding pricing, although Kangshifu Ice Black Tea announced a price increase two years ago, most stores have maintained the original prices at 3 yuan for a 500ml bottle and 4 yuan for a 1L bottle. Many store owners expressed that it’s not that they don’t want to increase prices, but they are afraid to do so because with declining sales, following the official price adjustment might further prompt consumers to switch to other brands.
The report mentioned that due to rising procurement costs, some stores are left with only about 70 cents in profit per bottle of ice black tea, operating on thin profit margins.
Financial reports of Kangshifu Holdings also indicate pressure on the beverage business. According to a report by “Finance Society” on April 27, Kangshifu Holdings achieved an operating income of 79.068 billion yuan in 2025, a 1.96% year-on-year decrease. Among them, the revenue from the beverage business was 50.123 billion yuan, a 2.9% year-on-year decrease. This marks the first annual revenue decline in nine years for Kangshifu since 2017.
In recent years, the beverage market in mainland China has become increasingly competitive, with consumers’ choices becoming more diversified. New types of tea drinks, bottled unsweetened teas, coffee beverages, sparkling water, and functional drinks have continuously entered supermarkets, convenience stores, and dining outlets, causing traditional sweetened bottled tea drinks to face more competition diversion.