Menghai Tea Factory was founded in 1940 and is located in Menghai County, Xishuangbanna Prefecture, Yunnan Province, China. The factory was originally called Fo Hai Tea Factory, but changed its name to Menghai Tea Factory in 1953 with the establishment of the Xishuangbanna autonomous prefecture.
Menghai Tea Factory is credited as being one of the first two factories to make "cooked" pu'er tea in 1973 . As the tea factory industry in China privatized in the late 1980s through the 1990s, Menghai Tea Factory adopted its "Dayi" logo and went fully private in 1996. Currently, Menghai Tea Factory is owned by The Bowin Company, who purchased Menghai Tea Industry Co. Ltd and Menghai Tea Factory in October 2004.