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Tag: coffee

  • Starbucks China and Sequoia Capital launch technology investment plan

    Starbucks China and Sequoia Capital launch technology investment plan

    Starbucks is to partner with the investment company Sequoia Capital to invest in new technologies that will accelerate the company’s digital innovation in Mainland China.

    The two companies plan to focus on next-generation food and retail technology companies whose products will help Starbucks grow the coffee and retail industry in China, one of its fastest-growing markets globally.

    An early focus will be opportunities to embed digital technologies across Starbucks’ retail business, making the most of data-driven analytics, modeling, and decision making.

    “These may entail adopting creative solutions to enhance front- and back-of-house operations, such as the use of machine learning and predictive intelligence tools in managing Starbucks growing retail operations in China, or the optimization of Starbucks supply chain through precise, real-time inventory management,” the company said in a statement.

    “China’s vibrant environment is a rich ground for entrepreneurship that has seen the emergence of many local innovators that we hugely admire,” said Starbucks China CEO and chairman Belinda Wong.

    “The partnership enables Starbucks to tap into the most dynamic Chinese technology entrepreneurs in order to delight our customers with meaningful innovations created in China, for China.”

    By partnering with Sequoia Capital, Starbucks will gain early access to technologies which it expects will create investment opportunities to grow its China business and keep pace with technology innovations which are driving structural reform across digital, online, and brick-and-mortar retailing.

    “Beyond the direct benefits from this collaboration, Starbucks also hopes to leverage its retail expertise, scale, and infrastructure to help realize the growth aspirations of like-minded purpose-driven companies that have a passion for leading positive change for customers and communities,” said Wong.

    “The partnership presents an exciting platform for our portfolio companies to test, commercialize and scale new innovations for China,” added Neil Shen, steward of Sequoia Capital, and the founding and managing partner of Sequoia Capital China. “Together with Starbucks, we look forward to bringing the digital transformation of the consumer retail industry in China to the next level.”

    This is not Starbucks’ first commitment to identifying and funding new technologies. Last year it launched Siren Ventures in the US to invest in new concepts and technologies.

    “We are excited to tap the tremendous energy of technology entrepreneurs from two of the world’s largest and most dynamic markets, to pioneer innovative solutions that could reimagine the global retail landscape,” said Kevin Johnson, president, and CEO of Starbucks.

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  • Kerry Logistics expands its coffee business into Taiwan

    Kerry Logistics expands its coffee business into Taiwan

    Kerry Logistics Network Limited (‘Kerry Logistics’; Stock Code 0636.HK) announced the expansion of its coffee trading business into Taiwan, as the sole distributor of Italian coffee group illycaffè’s complete product range in Taiwan. The move marks Kerry Logistics’ extension of its footprint into a society with a rich coffee culture.

    Kerry Logistics, through its sub-brand Kerry Coffee, is now the sole distributor of illycaffè’s iperEspresso coffee machines, capsules, coffee beans and other coffee-making equipment and accessories in Hong Kong, Macau and Taiwan.

    Kerry Coffee was established in 2019 for the trading and distribution of illycaffè’s products in Hong Kong and Macau. It was a progression of the partnership between Kerry Logistics and illycaffè that began in 2017 to provide total integrated logistics solutions for illycaffè and act as the sole distributor of iperEspresso coffee machines and capsules in Hong Kong.

    Robert Berger, Executive Director of Kerry Coffee (Hong Kong), said, “We are delighted to take our collaboration with illycaffè further and into a society that appreciates the finer points of coffee. Taiwan has a deep-rooted and booming coffee culture. So we are optimistic in deepening Taiwan’s love of coffee by bringing the unique Italian coffee culture and flavour embodied by illycaffè there. This expansion is a substantial increase in presence for the illy brand, complementing Kerry Coffee’s existing operation in Hong Kong and Macau and strengthening its position in the coffee market.”

    illycaffè is one of the world’s most global coffee brands. As its sole distributor in Hong Kong, Macau and Taiwan, Kerry Coffee is responsible for providing total logistics solutions, sales and marketing to its entire product selection.

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  • Starbucks China launches plant-based menu with Beyond Meat, Oatly, Omnipork

    Starbucks China launches plant-based menu with Beyond Meat, Oatly, Omnipork

    Starbucks China is launching a plant-based menu in partnerships with Beyond Meat, Omnipork and dairy-substitute Oatly which will be available in most stores nationwide.

    From tomorrow (April 22) the coffee chain will launch two pasta dishes and a wrap featuring Beyond Beef, effectively launching the meat-substitute brand on the mainland.

    A Vietnamese-style noodle salad and mushroom-sauce grain bowl created with protein-based pork substitute Omnipork is also going on sale, along with oatmilk options on its beverage menu, created with Swedish brand Oatly.

    Leo Tsoi, senior VP, COO and president at Starbucks China Retail, says the new menu items make it easy and enjoyable for customers to explore new lifestyles.

    “Through our new plant-based platform, we seek to inspire new routines by inviting everyone to eat good, feel good and do good. Together, we can take a small, humble step to make a better world,” he said.

    Beyond Meat has worked with Starbucks as part of its market entry into the Chinese mainland. Ethan Brown, Beyond Meat founder and CEO says the launch marks an important milestone in the company’s goal of increasing accessibility to plant-based protein globally.

    “Starbucks is a trusted brand with a strong market presence and deep understanding of customers in China, and we’re pleased to partner with them on our market entry. We believe the new Beyond Beef menu items deliver on our promise of enabling consumers to Eat What You Love while also enjoying the nutritional and environmental benefits of plant-based protein,” he said.

    Meanwhile, oatmilk joins soy as a dairy alternative, which has been a feature of the Starbucks China menu for 13 years.

    “It’s a significant step for the growing plant-based movement that Starbucks customers in China can now enjoy their favorite beverage with Oatly,” said Toni Petersson, global CEO at Oatly.

    “Oatly pairs extremely well with espresso and creates a wonderfully dense and creamy foam for lattes.”

    Starbucks China has also launched a merchandise range made with recycled coffee grounds, including tumblers and notebooks. The grounds are processed and mixed with polypropene to form an industrial-grade material with more than 30-per-cent recycled coffee ground content. Th

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  • Starbucks disclosing financial support for its staff in Asia

    Starbucks disclosing financial support for its staff in Asia

    Global coffee giant Starbucks has announced a US$10 million fund to support its partners (employees) around the world impacted by the coronavirus outbreak.

    The Starbucks Global Partner Emergency Relief Programme marks the first time both company-operated and international licensed market store partners across Starbucks will be able to access hardship grants.

    In company-operated markets such as China and Japan, the grants will be made available to partners through the existing Caring Unites Partners Fund – while in the rest of Asia, where Starbucks operates with local licensed businesses, they will be available to partners through the Emergency Assistance Foundation.

    “During this very difficult time, we believe it is our responsibility to create additional support for partners facing unexpected financial hardship wherever they are,” said Starbucks’ chief partner officer Lucy Helm. “We are proud to be a catalyst for a first-of-its-kind global funding initiative to further demonstrate to our Starbucks partners that we are in this together.”

    Starbucks’ commitment will also create a pathway for international licensed markets to set up their own funds, with Starbucks contributing an initial investment – a first for the company.

    Qualified categories for fund grants include (but are not limited to) housing and utilities, sudden loss of home, death of a family member or partner, and related funeral expenses.

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  • Consumers swamp Luckin Coffee app in wake of controversy

    Consumers swamp Luckin Coffee app in wake of controversy

    Disgraced Chinese coffee giant Luckin has apologized to customers and promised business as usual following a widely publicized admission that the firm had fabricated sales figures.

    The apology came while downloads of its delivery app skyrocket as Chinese consumers seek to take advantage of a longstanding offer of a free drink. Reporting suggests downloaders are eager to cash in on the offer while the company’s future remains in question.

    The scramble to download the app has made it temporarily the second-most-popular free app in China, up from its usual ranking of around 70th to 100th place. In some cities services offered via the app have frozen due to demand overload.

    Observers both within China and worldwide were stunned by the shocking admission that the firm’s COO and other staff had filed false sales data in an attempt to boost the company’s value within a year of its IPO. The news wiped more than US$5 billion off Luckin Coffee’s market capitalization and sent its share price plummeting 80 percent as stockholders dumped their stakes.

    On Monday, Luckin’s chairman Charles Zhengyao Lu and CEO Jenny Zhiya Qian conceded their shares to lenders after defaulting on a $518 million margin loan. Class B shares totalling 515,355,752 and 95,445,000 class A shares in the firm had been pledged as loan security.

    Banks involved in the loan, including Goldman Sachs, Morgan Stanley, Credit Suisse, Haitong, CICC and Barclays are now holding discussions on a potential sale of the shares.

    Before the revelation, Luckin had been widely heralded as a serious competitor to Starbucks within the territory, surpassing the total number of outlets operated by Starbucks China earlier this year.

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  • Luckin Coffee’s value crashes after it admits falsifying sales data

    Luckin Coffee’s value crashes after it admits falsifying sales data

    Chinese chain Luckin Coffee has admitted senior executives exaggerated sales to boost the company’s worth and reputation.

    In a stunning admission, the company has advised investors not to rely on financial statements for the nine months to September last year. Transactions totaling about 2.2 billion yuan (US$310 million), have been cited.

    COO Jian Liu and an unspecified number of other employees have been suspended while the company’s board investigates their misconduct.

    “Certain costs and expenses were also substantially inflated by fabricated transactions during this period,” Luckin said in a stock exchange filing.

    Shares in the company plunged by 81 percent yesterday after the company’s admission.

    Launched in January 2018, Luckin Coffee’s growth trajectory was so fast the company was valued at an astonishing US$2.2 billion within 12 months.

    The true extent of the misrepresentations remains unclear while a panel reviews financial records. However, in November, the company claimed sales were running at six-times the rate of the previous year.

    Prior to its listing in the US, the company secured investment from the Singapore Government sovereign wealth fund GIC and China International Capital Corp, among others. It raised US$778 million in early January and $645 million in a US IPO.

    Luckin Coffee has previously been touted as a serious threat to US chain Starbucks which currently dominates China’s fast-growing coffee cafe market.

    Luckin Coffee’s aggressive competitive strategy involves an IT-focused approach whereby customers purchase coffee via an app, with which they can then monitor brewing progress via live stream. It was counting on technology and a considerably lower price point to win market share from Starbucks.

    Luckin Coffee was planning to reach 10,000 locations by the end of next year, but analysts are now casting doubt on its ability to achieve that goal. At the end of last year it had 4500.

    “It will take several years for management to repair its credibility,” Keybanc Capital Markets analyst Eric Gonzalez said in a note to clients, reported by Bloomberg.

  • Starbucks Korea expands social-distancing plan

    Starbucks Korea expands social-distancing plan

    Starbucks Korea will expand social-distancing measures across its branches nationwide from Thursday, after a successful trial at some stores in Daegu and North Gyeongsang Province.

    The company plans to ensure a safe distance between customers and employees is maintained when ordering by placing safety line stickers in front of checkout counters.

    Furthermore, for a limited time, customers will not be able to bring their own reusable mugs.

    When ordering drinks using individual multi-use cups, customers will still get benefits for being eco-friendly, such as discounts or points, by showing personal cups. However, customers will be provided the drink in a disposable cup. This strategy was introduced in the US a fortnight ago and has since been implemented in many markets across Asia.

    Meanwhile, Starbucks will also conduct campaigns such as asking people to wear masks when ordering, and to dispose of paper straws in trash cans.

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  • Starbucks Philippines shuts down all stores due to COVID-19

    Starbucks Philippines shuts down all stores due to COVID-19

    Following its temporary closure of stores in Luzon last week, Starbucks Philippines has now extended the shutdown to Visayas and Mindanao.

    In social media posts, the coffee chain said the health and well-being of its partners (employees) and customers remain top of mind and their highest priority.

    The complete closures means no delivery or takeaway services will be offered either.

    “Based on the guidance of local authorities and after much consideration, our stores in Visayas and Mindanao will also close. As such, all Starbucks stores in the Philippines will be temporarily closed”, Starbucks Philippines posted on its Facebook and Twitter account.

    The company said it looks forward to serving customers again as soon as possible, but as of now, it encourages everyone to stay indoors and stay safe and healthy.

    President Rodrigo Duterte declared the whole Luzon under “enhanced community quarantine” on March 16 and some other regions followed suit as the number of cases of coronavirus disease (COVID-19) continued to soar.

    Yesterday recorded the highest jump of COVID-19 in the Philippines with 82 confirmed patients in just a single day making it to 462 in total with 33 deaths while 18 have already recovered.

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  • Starbucks Japan launches Smart Lounge railway station concept

    Starbucks Japan launches Smart Lounge railway station concept

    Starbucks Japan has launched a new concept store in collaboration with railway operator JR East.

    The “Starbucks Coffee Takanawa Gateway Station” opened yesterday, introducing its Smart Lounge concept – a store space focused on business use. The store features numerous semi-private and single-seat seats to meet the needs of using a cafe for work purposes as well as a large table used for meetings with multiple people.

    Two fully-private booth-style share offices are provided within the store. Power outlets are available for all seats, and the store also operates a mobile battery sharing service. Wifi is available throughout the premises.

    The cafe also specializes in speedy cashless payment via Starbucks Card and Suica, among other e-payment platforms. Via a dedicated app, it allows customers to settle orders in advance and receive products smoothly at stores, designed to allow more effective use of time and reduction of waiting time at cash registers.

    “Starbucks has more than 1500 stores nationwide and connects with 800,000 customers a day,” said Starbucks Japan head of store development Kazuhiro Ishihara. “Each store has its own personality and expression that reflects the locality and needs of each individual.

    “At the Takanawa Gateway Station, we provide a smart and comfortable experience that suits its location and purpose, and integrates with people’s lives to create a future city that no one has yet seen. We aim to be a store and base that can be created with people.”

    Takanawa Gateway Station is situated in Shinagawa town, a new urban area under development that aims to be a new gateway to Tokyo.

    JR East aims to operate 30 shared office spaces by the end of the financial year.

  • Starbucks China to open Coffee Innovation Park

    Starbucks China to open Coffee Innovation Park

    Starbucks China will invest US$130 million in a new roasting facility in 2022 as part of its upcoming Coffee Innovation Park in Kunshan.
    The park will be Starbucks’ largest manufacturing investment outside of the US and its first in Asia, incorporating a roasting plant, warehouse and distribution centre. The firm has committed to strengthening the specialty coffee industry in China, aiming to operate 6000 stores in China within two years.

    “Starbucks has spent the past 20 years sharing its passion for coffee across China and helping to build a leading industry that makes us all proud,” said Starbucks China chairman and CEO Belinda Wong.

    “The roasting facilities at the Coffee Innovation Park will set a blueprint for the future of coffee roasting and supply chain management, and further elevate China’s coffee industry, while supporting Starbucks’ growth in China.”

    The Coffee Innovation Park will incorporate advancements in sustainable manufacturing, smart supply chain innovation, and technology to help deliver the most energy- and water-efficient roasting operations for Starbucks in the world, while minimizing waste.

    Starbucks opened its Yunnan Farmer Support Centre eight years ago to provide open-source agronomy resources to coffee farmers throughout the region. Its new Coffee Innovation Park will source coffees from China and around the world directly from the origin for processing, roasting, packaging and distribution, for the first time in China.

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  • South Korean fashion chain Aland quits Hong Kong

    South Korean fashion chain Aland quits Hong Kong

    South Korean fashion chain Aland has quietly exited the Hong Kong market, after shuttering its final stores.

    The multi-brand retailer opened its first international branch in 2011 at Harbour City. Riding the ‘Korean Wave’ in the local market, the multi-brand retailer opened multiple stores within the following years, including at Lee Theatre, APM and Megabox. Without an official announcement, Aland has just folded its most recent branch at Mong Kok’s TOP mall, which opened in 2018.

    The South Korean fashion chain Aland, best described as an affordable fast-fashion brand, was founded 15 years ago by sisters Kinam Jung and Jung Eun Jung in Seoul, South Korea and still has branches in their domestic market and Thailand. It recently expanded its footprints in the US.

    Meanwhile, South Korean coffee chain Tom n Toms also left Hon

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  • Starbucks teams with Royal Selangor in merchandise range

    Starbucks teams with Royal Selangor in merchandise range

    Starbucks Malaysia has collaborated with iconic local pewter manufacturer and retailer Royal Selangor to produce a collection of handcrafted merchandise exclusively for coffee lovers in Malaysia.

    The collection includes a coffee stirrer, collar pin, shot glass, keychains, glass mug, and an ID tag.

    Sydney Quays, group CEO of Berjaya Food Berhad and MD of Starbucks Malaysia and Brunei, said the company is excited to offer a collection that celebrates Malaysia, and elevates Malaysian resources through the partnership.

    “Just as our customers are always looking out for meaningful trends and styles, we seek out some of the most coveted home-grown brands from across Malaysia to explore ways we can collaborate and curate a line of locally-made products through the Starbucks X Royal Selangor series,” said Quays.

    Meanwhile, Chen Tien Yue, Royal Selangor International executive director said designing the range was a fun project for both designers and crafts, developing not only coffee accessories but also personal accessories that would appeal to the Starbucks fan.

    Royal Selangor was founded in 1885 by Yong Koon. It was first named as Selangor Pewter but later changed to Royal Selangor in 1992. The company produces tableware and gift items including tankards, tea sets, photo frames, desk accessories and wine accessories distributed worldwide from its Kuala Lumpur base.

    “After 20 years in Malaysia, the Starbucks siren is now immortalised in pewter”, Yue added.

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  • Starbucks opening signing store in Tokyo

    Starbucks opening signing store in Tokyo

    Starbucks Japan is to open its first signing store in early Summer 2020 in Kunitachi City, Tokyo.

    Launched for the convenience of the deaf and hard of hearing, the new Starbucks outlet will provide service to customers in Japanese Sign Language. Signing stores have previously opened in Malaysia, Washington DC, and China. The store will be the first of its kind in Japan and the fifth globally.

    Deaf and hard-of-hearing staff will work alongside hearing partners to provide service to customers. The store is located close to a school for the deaf.

    A statement from the firm read “Starbucks aspires to become a people positive company where we uplift each other, our customers, and the communities we serve. Since 2018, Starbucks Japan has taken a ‘no filter’ approach to diversity and inclusion to create a place of belonging where partners can bring their best selves to work, without prejudice, assumption or bias toward race, age, gender, position, employment status, disability, personal values, or any other basis.”

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  • Starbucks sales down in Mainland China

    Starbucks sales down in Mainland China

    Starbucks China has predicted sales will halve in the current quarter due to the coronavirus crisis.

    According to the US parent company’s CEO Kevin Johnson and CFO Patrick Grismer, sales at Starbucks China stores dropped 78 percent year on year because of a sharp decline during the coronavirus outbreak.

    Prior to the outbreak, Starbucks aimed to achieve 3-per-cent sales growth in China at stores open at least 13 months. At the moment, the company predicts a 50 percent drop in sales this quarter and delays store openings in the country.

    “We remain confident in the strength of the Starbucks brand and the long-term profitability and growth potential of our business in China,” the company said in a statement.

    Starbucks China temporarily closed most of its stores in China last month to protect staff and customers from exposure to the virus. Recently, the coffee chain has progressively reopened stores business with limited trading hours. The company aimed to open 95 percent of its stores by the end of the second quarter, said CNN.

    Meanwhile, Ikea China is reopening nine more stores after resuming trade at five stores last week, as it slowly returns to normal business.

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  • Starbucks Japan to open greenhouse store in theme park

    Starbucks Japan to open greenhouse store in theme park

    Starbucks Japan is to open a greenhouse store in western Tokyo this month, set in a theme park celebrating flora and fauna.

    Located inside the Hana Biyori greenhouse operated by Yomiuriland park, the Starbuck greenhouse cafe occupies a 1500sqm area, featuring colorful flower chandeliers and abundant greenery including begonia, fuchsia, petunia, geranium and bellflower.

    As can be seen from the artist’s impressions, large aquarium tanks will also be a central feature of the store.

    With 20 projectors and 18 speakers, the cafe will present an audio-visual experience filled with digital and real flora several times a day.

    Starbucks Hana Biyori will open its doors to the public on March 14.