Starbucks is selling a majority stake in its business in China. Yet even as the U.S. coffee chain’s popularity has waned in China in recent years, the country’s coffee consumption has been “increasing by double-digits annually,” to a 300 billion yuan ($42 billion) industry today, said the South China Morning Post. So what gives?
Starbucks opened its first store in China nearly 30 years ago. There was “much fanfare,” including a “troupe” performing a traditional “golden lion” dance and “eager customers” sampling cappuccinos, said CNN. The arrival of the U.S. brand “helped spur the rise of a thriving coffee culture among the middle class” in a country that traditionally drank tea, and by 2017, the coffee giant was opening a new store every 15 hours in China.
But “dozens” of domestic chains have “exploded onto the scene” in recent years, offering coffee at “steep discounts,” CNN said. Last year, Luckin Coffee opened its 20,000th store in China, having “doubled its footprint in a single year,” said marketing news site Campaign. “The message is clear”: China’s “coffee game” is being “rewritten by local players.”
Chinese brands are “constantly dropping seasonal specials with local ingredients, herbs, superfoods, the works,” Roolee Lu, the food-and-drink category director at Mintel China, told Campaign. There are “lattes drizzled with pork sauce” or “spiked” with Chinese alcohol, said NBC News. Tea has “long been the drink of choice” for Chinese people, said the South China Morning Post, but a “coffee culture has boomed.” |