Shanghai is set to get its own Starbucks Roastery and Tasting Room, the first high-end roastery from the international coffee chain to open outside the United States, the city’s quality watchdog said Thursday [30 November 2017]. The Shanghai border inspection and quarantine bureau has completed all necessary checks of the Seattle-based coffee chain’s imported equipment for the cafe…Full Article: ECNS.cn Dec 2017

Key Point

  • The Starbucks Roastery and Tasting Room (~30,000 sq. feet) features a Teavana (tea) bar, a Princi bakery, and an Alibaba-backed digital smartphone tour of the roastery.

ChinaAg Comments

  • In September 2017, Starbucks China began accepting Alibaba’s Alipay mobile payment app.
  • In July 2017, Uni-President Enterprises (UPE) and President Chain Store Corp (PCSC) sold their respective 20% and 30% shares in President Starbucks Coffee Shanghai Corp to Seattle-based Starbucks for USD 1.33 billion. Afterwards, Starbucks gained full control of approximately 1,300 Starbucks outlets in the eastern Chinese provinces of Jiangsu and Zhejiang, as well as Shanghai (~600 outlets). At the same time, UPE and PCSC purchased a 50% stake in Taiwan’s President Starbucks Coffee Corp, giving the two companies full control of Taiwan’s Starbucks outlets.
  • From January to March 2017, according to the CEO of Starbucks China, WeChat Pay (began in December 2016) accounted for 29% of all transactions. In terms of the entire mobile payment market within China, over the same time period, Alipay held a 53.7% share, while WeChat Pay had a 39.5% share. Apple Pay had a ~1% share.
  • In December 2016, Starbucks permitted customers to make purchases with Tencent’s WeChat. In China, Costa Coffee, McDonald’s and Kentucky Fried Chicken have already adopted the WeChat digital payment system.
  • In September 2016, Starbucks announced it would market two iced shaken tea beverages from its Teavana brand in China. During the same month, Starbucks announced it would launch new bottled Frappuccino (Arabica) coffee beverages in coffee, mocha, caramel and vanilla flavors. The company plans to sell theese ready-to-drink coffee beverage in Chinese supermarkets, convenience stores and online (e-commerce).
  • In July 2016, Starbucks announced that Princi food products, a boutique bakery, will be used to stock Starbucks’ new international roaster and reserve tasting room in Shanghai (opening in 2017).
  • In June 2016, Starbucks announced it would raise the price of its coffee drinks by 8% to 10% in China. The last time Starbucks raised the price of its coffee drinks in China was in 2012.
  • In May 2016, Starbucks announced it would open its first international roaster and reserve tasting room in Shanghai in 2017.
  • As of early 2016, Starbucks had more than 2,100 stores located across 100 cities, making China its largest overseas market.
  • In January 2016, Starbucks announced plans to open 1,400 new stores by 2019.
  • In 2015, Starbucks had a 73.3% of China’s high-end coffee chain market, followed by McDonald’s McCafe at 9.3%, Whitebread’s Costa Coffee (British), and China Resources Enterprise’s Pacific Coffee at 3.9%.
  • In December 2015, Starbucks began marketing their goods on Alibaba’s Tmall e-commerce site.
  • As of 2015, Starbucks had 1,700 coffee shops in China.
  • In September 2015, Starbucks opened two stores in Xining City, Qinghai Province, northwest China.
  • In March 2015, Tianjin’s Tingyi Group signed a deal with Seattle’s Starbucks to produce and distribute the coffee company’s ready-to-drink products in mainland China.
  • In November 2012, Starbucks raised the retail price on five espresso-based drinks (e.g. latte, macchiato, mocha, and cappuccino) by CNY 2 (US$0.32) in 12 cities across China including Tianjin, Chongqing and Dalian.
  • In January 2012, Starbucks raised the retail price for regular coffee by CNY 1 to 2 (US$0.16 to US$0.32). Starbucks also increased the price of espresso and hot chocolate by CNY 1 to 3.
  • In 1999, Starbucks opened its first coffee store in China.

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