RooLife Group Ltd (ASX, RLG) has launched its proprietary RLG Coffee brand in China, tapping into a rapidly expanding market with early sales exceeding $110,000 in the first month. Strategic partnerships and a recent supply deal position RLG for broader growth in the country’s evolving consumer landscape.
- RLG Coffee brand launched targeting China’s +21% annual coffee market growth
- Two strategic partners secured for online and offline distribution
- First-month sales orders surpass $110,000, revenues expected Q1 FY26
- Online presence established on Tmall, JD.com, and Douyin platforms
- Aligned with supply agreement expanding reach to 1 million retail outlets
RLG Enters China’s Coffee Market
RooLife Group Ltd (ASX – RLG) has officially launched its proprietary RLG Coffee brand in China, marking a significant step in the company’s strategy to capture high-growth consumer sectors. China’s coffee market, growing at an impressive 21% annually, is rapidly shifting from its traditional tea roots toward a burgeoning coffee culture. This transformation offers fertile ground for new entrants like RLG to establish a foothold.
The company’s initial production run is complete, with the first batch of products already distributed. Early traction is promising, with sales orders exceeding $110,000 in the first month alone. While revenues are expected to be recognised in the first quarter of fiscal 2026, these early figures validate the demand and the company’s market entry approach.
Strategic Partnerships and Distribution
RLG has appointed two key distribution partners; Zhongshan Runlian Commercial Co., Ltd and Ausmeiyoupin (Guangzhou) International E-Commerce Co., Ltd; to spearhead sales both online and offline. These partners will manage flagship stores on major e-commerce platforms such as Tmall, JD.com, and Douyin, ensuring broad consumer reach and engagement.
Importantly, RLG retains control over brand integrity, supply chain, and product quality, while leveraging its partners’ operational expertise in day-to-day e-commerce execution. This hybrid approach aims to balance brand stewardship with efficient market penetration.
Broader Growth Strategy and Market Context
The coffee launch dovetails with RLG’s recent two-year supply agreement with Eternal Asia, a Fortune China 500 company with an extensive retail network spanning over 320 cities and one million outlets. This agreement significantly expands RLG’s distribution footprint beyond cross-border e-commerce into China’s general trade retail channels.
CEO Bryan Carr emphasised the strategic importance of this move, highlighting the accelerating demand driven by lifestyle changes and digital-first consumption trends. The company also hints at future expansion into health and wellness product categories, signalling a broader ambition to build a diversified portfolio in China’s fast-evolving consumer market.
China’s coffee sector is forecast to exceed US$20 billion in revenues by 2025, reflecting not only rising disposable incomes but also government policies encouraging private sector growth. RLG’s entry at this juncture positions it to capitalise on these macro trends.
Bottom Line?
RLG’s early success in China’s coffee market sets the stage for a broader push into high-growth consumer sectors, but sustained momentum will depend on execution and competitive dynamics.
Questions in the middle?
- Can RLG sustain and scale its initial sales momentum amid fierce competition?
- How will the partnership with Eternal Asia translate into tangible retail penetration?
- What timeline and strategy will RLG adopt for expanding into health and wellness categories?