# New Tea Sector

The Bitter Aftertaste: Nayuki’s Tea Grapples with IP Woes and a Shrinking Empire

Nayuki’s Tea has been penalized for intellectual property infringement against Pop Mart, marking another low point for the embattled beverage giant. Facing a cumulative loss of 6.4 billion RMB and a shrinking store count, the company is struggling to survive an intense price war and declining consumer demand in China.