Planet Green Bets on a 400-Year-Old Tea Legacy to Revive Fortunes

NEW YORK, NY – December 01, 2025 – In a move that blends ancient heritage with modern commerce, Planet Green Holdings Corp. (NYSE American: PLAG) has unveiled a new line of premium black tea, the "Shengshengchuan Black Gold Series." Launched through its Chinese subsidiary, Hubei Shengsili Biotechnology, the product line represents a calculated push into China’s fiercely competitive but rapidly growing premium beverage market. While the press release paints a picture of enthusiastic distributors and burgeoning demand, a deeper look reveals a high-stakes strategic pivot for a company navigating significant financial pressures.

This launch is more than a simple product rollout; it's a test of whether a 400-year-old tea-making tradition can be revitalized to brew new profits and reshape the narrative for the New York-based holding company.

Brewing History for a New Generation

The core of Planet Green’s strategy rests on the Shengshengchuan brand, which the company states has a heritage tracing back more than four centuries. The new Black Gold Series aims to modernize this legacy, adapting classic craftsmanship to suit contemporary flavor profiles and formats. This approach taps directly into a powerful trend in the Chinese consumer market: a deep-seated appreciation for cultural authenticity combined with a desire for novel, high-quality experiences.

Mr. Bin Zhou, Chairman of Planet Green, described the series as "a new product line brewed from traditional craftsmanship," highlighting the enthusiastic feedback and "strong purchase interest" from distributors at a recent launch event. The goal is to capture a new generation of tea drinkers who are moving beyond commoditized products and seeking brands with compelling stories and superior quality. By commercializing this cultural heritage, Planet Green is attempting to build a defensible moat in a market crowded with countless tea varieties. The fusion of history and innovation is a well-worn path in luxury goods, and its application here signals a clear intent to position Shengshengchuan in the premium segment.

Tapping China's Surging Tea Market

Planet Green's timing appears strategic. The Chinese tea market is not just large; it is undergoing a significant transformation. Valued at over $106 billion in 2023, the market is projected to swell to more than $133 billion by 2029. This growth is propelled by rising disposable incomes and a profound cultural shift towards health and wellness, with tea at the forefront.

More importantly, the premium segment is experiencing the most rapid growth in absolute value. Chinese consumers are increasingly willing to pay more for specialized teas that offer unique flavors, verifiable origins, and a sense of cultural connection. This "premiumization" trend creates a fertile ground for a product like the Shengshengchuan Black Gold Series. While traditional loose-leaf tea remains dominant, the explosive growth of ready-to-drink (RTD) formats and "new-style" tea chains like HeyTea and Mixue demonstrates a market hungry for innovation. Planet Green’s effort to create new formats and flavor profiles with its Black Gold Series is a direct attempt to capitalize on this evolving landscape, bridging the gap between ancient tradition and the modern, convenience-oriented consumer.

A High-Stakes Brew Amid Financial Headwinds

Beneath the surface of this optimistic launch, however, lies a more complex financial reality for Planet Green Holdings Corp. The company's most recent quarterly report, filed in November 2025, paints a challenging picture. Net revenues for the third quarter fell 33% year-over-year to $2.52 million, driven largely by stagnant sales in its synthetic fuel products segment. Gross profit plummeted by 79%, and the company reported a staggering 244% increase in its net loss, which reached $(13.72) million.

Critically, the company's own financial statements for the year ended December 31, 2023, contained an explanatory paragraph casting doubt on its ability to continue as a "going concern." This context reframes the Shengshengchuan launch from a simple growth initiative to a potentially crucial lifeline. With other business divisions underperforming, a successful entry into the lucrative premium tea market could provide a much-needed revenue stream and bolster investor confidence. The pressure is on Hubei Shengsili Biotechnology not just to launch a product, but to execute a flawless market entry that can begin to offset losses elsewhere in the diversified holding company's portfolio.

The Gauntlet of Production and Distribution

Anticipating strong demand is one thing; meeting it is another. The success of the Black Gold Series hinges on Planet Green's ability to navigate the notoriously complex logistics of the Chinese market. The company has stated its intention to "accelerate production and expand distribution channels," but this involves significant operational hurdles.

On the production side, Planet Green's existing subsidiary, Xianning Bozhuang Tea Products, already boasts an annual capacity of 5,000 tons of various teas, providing a foundation for scaling up. The real test, however, will be in distribution. The company currently utilizes sales channels across 30 major Chinese cities, but expanding reach in the fragmented retail landscape is a challenge. A key strategic move came in June 2025, when Planet Green announced a partnership between its tea subsidiary and Inner Mongolia Lvtaiyuan Agricultural Products Co. This alliance is designed to leverage Lvtaiyuan's established network to penetrate the significant black tea consumer market in Inner Mongolia, demonstrating a concrete strategy to overcome common distribution bottlenecks by partnering with strong regional players.

Navigating a Crowded and Competitive Field

Planet Green is entering a market that is as competitive as it is vast. The premium black tea space is already populated by revered names with deep historical roots and regional identities, such as Keemun from Anhui, Dianhong from Yunnan, and the famed Lapsang Souchong from the Wuyi Mountains. These established varieties have strong brand recognition and loyal consumer bases.

Beyond these traditional giants, Planet Green must also contend with the hyper-innovative new-style tea brands that have captured the imagination of younger, urban consumers through savvy digital marketing, constant product innovation, and strong branding. The challenge for the Shengshengchuan brand will be to carve out a distinct identity. It must convince discerning traditionalists of its authenticity while simultaneously appealing to modern consumers who are also being courted by agile and aggressive competitors. Ultimately, the success of the Shengshengchuan Black Gold Series will serve as a critical barometer for Planet Green's ability to turn cultural capital into financial returns within one of China's most dynamic consumer markets.