Feedback loop key to Lemon Republic's brand evolution

In a market crowded with novelty beverages and short-lived trends, beverage company Lemon Republic is attempting something unusually focused: to build a multi-billion-yuan business out of just one fruit.

Founded in 2021, the startup has spent the past four years pushing the boundaries of lemon drinks — from collagen-infused lemon juice to fizzy citrus sodas and even cold-pressed vitamin C shots. But its path has been anything but straightforward.

"Our first products looked cool, but they didn't sell," said A Xie, co-founder of Lemon Republic.

"We thought adding functional ingredients — collagen, probiotics — justified premium pricing. But consumers didn't believe the story. They didn't think a drink could make them beautiful. That was our fantasy, not theirs," she recalled.

That hard-earned lesson prompted a reset. Instead of chasing functional hype, Lemon Republic began building its brand around the three essential lemon attributes: sourness, vitamin C and refreshment.

To differentiate itself in a low-entry barrier industry where contract manufacturers are plentiful, Lemon Republic focused on vertical integration — not by owning farms, but by increasing its technical expertise.

"If you want pricing power on ingredients, you have to become a major buyer," A Xie said. "That only happens when your product SKUs go deep on one raw material."

Since 2022, the company has filed more than 10 patents related to lemon juice extraction and processing. It also sources multiple lemon varieties, from small calamondins to fragrant lemons, directly from key citrus-growing regions across China.

The brand's flagship original lemon juice found traction not through health benefits, but pure flavor. It became a viral hit after being featured on top livestreamer Li Jiaqi's show just two months after launch in 2021. From there, the company launched additional variants like peach lemon and sweet lemon to cater to more palates.

This year, the company debuted its yellow lemon juice, which is built around a proprietary lemon peel oil aroma refill technique that captures the aromatic oils released during juicing and reintroduces them during mixing to enhance the flavor.

"It's a drink for lemon lovers," said the founder. "It smells like zest, it tastes like sunshine — but it's not for everyone."

While lemons aren't actually the highest natural source of vitamin C, consumer perception says otherwise. In 2022, Lemon Republic introduced its cold-pressed lemon liquid — a concentrated, ready-to-mix juice designed to meet daily VC intake in two servings. The product launch met with an explosive result: the product drove a 10-time increase in e-commerce sales within two months, she said.

Nothing screams "lemon" like a fizzy drink. The company's lemon sparkling water can series was designed for young professionals and is distributed through boutique supermarkets and convenience stores.

"Bubbles sell," A Xie said. The product has since expanded to smaller 200ml formats targeting portability and giftability, particularly around holidays like May 20, which is the local version of Valentine's Day.

Lemon Republic has also experimented with multiple consumption and lifestyle scenarios. In 2023, it released a camping edition lemon drink in a soft water pouch with a reusable spout — catering to the country's booming outdoor leisure trend. A Venom movie-themed co-branded drink featuring Pu'er tea and a black hue was released last year, offering a refreshing taste.

What separates Lemon Republic from many beverage startups isn't just flavor innovation, it's the speed at which the company validates and tests new ideas. Each year, the team launches up to 30 new products, with fewer than three making it into full-scale distribution.

Before launching, products are tested across Douyin, a short-video platform, and Xiaohongshu, a lifestyle-sharing platform, via low-cost content campaigns using creators and small influencers. The company analyzes video data frame-by-frame, looking at the exact moment users click, comment or buy.

"If a product can't hit 80 percent of our ROI target within 15 days, it doesn't move forward," said A Xie.

That feedback loop is now core to product evolution. "We learned to design backward — not from our assumptions, but from how users use the product," said the founder.

With a singular focus on lemons, Lemon Republic is betting that the path to China's next beverage giant is just one powerful raw material, expanding into as many formats and scenarios as possible.

"The beverage business isn't hard to enter," A Xie said. "But it's hard to stay. Our goal isn't scale — it's depth. And lemon is just the beginning."