Pu’er, a city long famous for fermented tea, has now also become a capital of coffee planting. That’s due, in part, to the Starbucks Yunnan Farmer Support Center, which was built in 2012 to help local coffee farmers with sustainable practices while providing high quality Yunnan Arabica beans for the well-known international coffee brand…Full Article: China Daily Mar 2018

Key Points

  • In early March 2018, a Yunnan-based farm collective (founded 2014, comprised of four villages – more than 2,000 households) sold 30 MTs of coffee beans to Starbucks Aini Coffee in Yunnan Province. In order to supply Starbucks, coffee growers must pass a certification process (CAFÉ Practice test). As of late 2017, 1,678 Yunnan coffee growers on 16,000 hectares of land received CAFÉ Practice test certification.
  • In 2017, Starbucks China procured approximately 7,000 MTs of coffee beans from Yunnan Province. During the same year, the company established its Starbucks Reserve Yunnan Yellow Honey Coffee specialized production area in the province.
  • In 2016, Starbucks China procured 8,000 MTs of coffee beans from Yunnan Province.

ChinaAg Comments

  • In December 2017, the Starbucks Roastery and Tasting Room (~30,000 sq. feet) was opened in Shanghai. The high-end store featured a Teavana (tea) bar, a Princi bakery, and an Alibaba-backed digital smartphone tour of the roastery. During the same month, Starbucks assumed 100% control of approximately 1,300 Starbucks outlets in the eastern Chinese provinces of Jiangsu and Zhejiang, as well as Shanghai (~600 outlets). The deal was initially announced in July 2017. As a result of its completion, Starbucks had more than 3,200 wholly-owned stores in China employing 40,000 people across 139 cities.
  • 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.
  • 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 December 2014, Nestle opened its first “coffee center” (e.g. training center, quality control, etc.) in Yunnan. Nestle stated they would only procure coffee beans in Yunnan that are “4C” certified. During the 2012 to 2013 coffee crop season, approximately 33% of coffee bean procured from Nestle (Pu’er) met the 4C verification. The majority of these beans were not sold domestically but exported internationally.
  • In February 2012, Aini Coffee joined with the U.S.-based Starbucks Coffee Company to establish Starbucks Aini Coffee (Yunnan) Co. Ltd. The joint venture will mill up to 20,000 tons of green coffee beans annually.
  • Founded in 1993 and headquartered in Kunming, Yunnan Province, Aini Coffee is a coffee raw material supplier with operations primarily based in the Pu’er region of Yunnan province.
  • In 1999, Starbucks opened its first coffee store in China.

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