Xueji Pastries and Snacks: How product obsession created a strong national brand

From the early days of selling roasted seeds at a stall, Mr. Xue had simple yet high requirements for the quality of raw materials. In 1992, roasted seeds were selling like hotcakes on the streets of Shandong, and Mr. Xue, too, bought a small rotary furnace to roast seeds in Jinan. At that time, roasted seeds were sold at 5 RMB per kilo and the purchasing cost from upstream suppliers was 3.4 yuan. Mr. Xue told the raw material supplier, “I’ll give you 3.8 yuan, four extra cents for the best goods.” In the 1990s, four cents increased the cost by 12%.

Despite higher costs than others, Mr. Xue’s seeds still sold for the same price, sparing consumers from bearing the burden. He told us, “At that time, I didn’t know what conscience, craftsmanship, and original intention were. All I knew was if I spent more on better raw materials, and guaranteed quality and cost-effectiveness, customers would be more satisfied and return for repeat purchases.

Tracing the origin is a crucial aspect of Xueji’s commitment to product quality. At the end of 2018, Mr. Xue and partner Wang Zhizhao personally went to Koktokay, Xinjiang, and signed a contract for a 40,000-acre planting base for Xueji 0531 sunflower seeds. While hand-peeling sunflowers, they also clarified Xueji’s product direction: a good product starts with planting, and the quality of raw materials is more important than the process.

Planting base for Xueji 0531 sunflower seeds in Koktokay

Chestnuts are the flagship product of Xueji. Traditionally, chestnut sales in snack shops peak in autumn and winter due to the September harvest, and after Chinese New Year, the taste and sweetness of chestnuts would gradually diminish. Chestnut processing also lacked standardization, heavily relying on the skills of chestnut roasting masters. The quality of the chestnuts could be compromised if the roasting master are in a bad mood.

Enhancing the standardization of product production and processing has been a steadfast goal for Xueji since its inception. To stabilize the taste of chestnuts, the Xueji team has comprehensively improved the processing techniques. In the chestnut production area in Qianxi, Hebei, Xueji subjects freshly harvested chestnuts to a -38-degree treatment to preserve their optimal sugar content and chewiness. During factory processing, Xueji uniformly opens the chestnuts for easy consumption by customers. Finally, store employees use ovens to roast the chestnuts for a few minutes to bring out the best texture.

Thanks to these improvements at every stage, Xueji’s chestnuts are now available for sale throughout the year, and in some cases, ice chestnut sales in the summer even surpass those in winter.

The widely popular milk dates represent a milestone event that Mr. Xue considers noteworthy in Xueji’s development history. Since its launch in November 2020, milk dates have garnered over 700 million cumulative views on Chinese social media platforms like Red and Tiktok. The viral success of this single product has ignited a buzz around the stores, with newly opened branches in different regions experiencing long queues, stretching up to a kilometer.

The power of trending products is immense, yet for a company with a long-term vision, the value of a single trending product is limited. The ability to consistently innovate products is the most crucial factor. Xueji’s secret weapon for product innovation extends beyond Mr. Xue’s role as a superb product manager; it also encompasses the unwavering dedication of the entire Xueji product development team to high standards.

Superb Product Manager Mr. Xue

Green bean cake is a new product introduced by Xueji in the summer of 2021. During the development of Xueji green bean cake, the team made multiple adjustments in terms of raw materials, processes, equipment, appearance, and storage time, spanning a total of six months. The green bean cake contains butter, but the disparity in butter ingredients among different brands across the country is significant, with prices varying several times. In the development process, Mr. Xue, like before, resolutely chose the higher-quality butter used by Pizza Hut to ensure the quality and taste of the green bean cake.

Internal taste testing is a crucial step in the development process. Multiple batches of samples are sent to the office for objective evaluations by every Xueji colleague. In terms of processing, Xueji thoroughly deliberated between baking and chilling the green bean cake, and ultimately, many agreed that the chilled version had a sweeter and chewier texture, making it more suitable for summer consumption. In the end, the chilled green bean cake was launched as Xueji’s seasonal flagship product and received high praise.

The winter season brings forth another flagship product, the yogurt citrus slices, which underwent meticulous refinement, including the exploration of five different orange varieties. Ultimately, oranges from Changde, Hunan were selected as the raw material. Following the tremendous popularity of the yogurt citrus slices, the local orange production in Changde could no longer meet Xueji’s production demands. Mr. Xue personally traveled across the country in search of similar high-quality oranges, but after comparisons, the oranges from Changde still had the best taste. Even when stores occasionally faced shortages, the company did not compromise by opting for alternative citrus materials.

As classic product categories and viral ones continue to gain consumer recognition, the Xueji team has become increasingly clear about its product strategy: first, imbue value by enhancing the quality of nut snacks; second, infuse flavor by consistently developing new viral products that consumers love. It is through exceptional products and experiences that Xueji aims to establish a genuine connection with consumers, making it a truly powerful brand.

One thing that Mr. Xue mentioned several times during our interview was the Spring Festival in 2002, when heavy snowfall coincided with customers flocking to purchase nut snacks for the upcoming festivities. There was a long queue outside the first exclusive Xueji store, winding through several turns, and customers had to wait for 40 minutes to buy the products. At that time, Xueji’s store conditions were basic, lacking shelters and umbrellas. By the time customers have reached the front of the line, their heads are covered in a thick layer of snow.

At that time, Mr. Xue was still personally selling sunflower seeds. Deeply touched, he found it challenging to express his gratitude through words to each customer and it brought him to tears. After closing the store that night, Mr. Xue asked himself, “With this much recognition and love from customers, how could Xueji let them down, how could we not strive to make excellent products and meet consumer needs?”

Mr. Xue and Frequenter of Xueji

It had been thirty years from Xueji’s first stall on Hero Mountain in Jinan, accompanying three generations. Many Xueji staff started out young customers of Xueji, enjoying Xueji snacks from youth to middle age, and later joined the company. Wang Anni, responsible for Xueji’s Douyin (TikTok) operations, has such a background. In the early years when Mr. Xue set up a stall, Wang Anni was still a little girl held in her parents’ arms. She would affectionately call “Mr. Xue,” and Mr. Xue would always gently peel a chestnut for her. Xueji is a brand that accompanied Anni’s growth, and she wants to convey the beauty that Xueji once brought her in a way that young people love. She often half-jokingly says that coming to Xueji fulfilled her childhood dream of eating melon seeds every day.

Young consumers’ passion for Xueji Products

The mission of Xueji is to bring the big melon seed into every happy family in China. For the Chinese, who value family concepts, happiness often means mutual support among family members, sharing during reunions, and the heartfelt attention given to every meal together. This reflects a unique emotional expression for the Chinese—they tend to be reserved, sharing only joys but quietly keeping worries only to themselves. When they travel a long distance home each year, they generously use the money saved from daily life for the best products to share with their families.

Xueji’s nut snacks have witnessed many such family reunions. In such a condensed moment of happiness, the snacks are more than just product—it’s the taste that embellishes memories. The store is more of a medium for experience and sharing. It is precisely because of the underlying significance that Mr. Xue and the team increasingly believe they are doing something incredibly great. This greatness is not about revolutionary innovation but rather a deed that touches upon the most tender part of people’s hearts, something that remains rare and beautiful to this day, and worth the effort of every Xueji member.