Fonterra taps into tea fad in wake of Chinese craze

To Western tastes it may seem a wacky idea, but a ‘‘tea macchiato’’ with a cream and cream cheese topping invented by a young Chinese entrepreneur has earned him millions since he launched his first store in 2012.

And partly thanks to the success of the craze, Fonterra is now building two new cream cheese plants at Darfield, Canterbury at a cost of $150 million.

Sophisticated, moneyed young Chinese do not mind queuing for up to an hour in upmarket shopping centres for the chance to experience the tea at a Hey Tea store, which has spawned numerous imitators.

It’s a far cry from the traditional tea houses their parents and grandparents once patronised.

Jessica and her three friends have been standing in line for half an hour but they don’t mind; it’s a chance to catch up at the end of the day on the latest gossip before they head home. At least they have managed to order, unlike the people patiently waiting in the line that snakes back around the corner. A burly staff member is on hand to avoid a riot, although the mood is good natured and patient.

Founder Yunchen Nie is only 26. He is the face of the new China – young, entrepreneurial and willing to take a gamble. As a 19-year-old, his first venture into business was a failure but inspired by the Starbucks brand, he decided to set up the equivalent based on tea. When he first launched the concept in his hometown of Jiangmen in Guangdong province, Nie dubbed it Royal Tea, but changed it to Hey Tea, partly because of the translation meaning ‘‘happy tea’’.

Social media and clever promotion saw the phenomenon take off. There are now 88 stores in ‘‘tier 1’’ cities such as Shenzhen, Shanghai, Guangzhou and Beijing.

Gerard Hutching is this year’s Nz-china Council media award winner.