Starbucks is selling a majority stake in its business in China after its popularity waned in the East Asian nation.
Yet as the US chain has struggled in recent years, China’s coffee consumption has been “increasing by double-digits annually”, said the South China Morning Post, and it now has a 300 billion yuan (£32 billion) industry. So what gives?
Starbucks opened its first outlet in China nearly 30 years ago. There was “much fanfare”, said CNN, including a “troupe” performing a traditional “golden lion” dance and “eager customers” sampling cappuccinos.
The arrival of the US 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 giant was opening a new outlet every 15 hours in China.
But “dozens” of domestic chains have “exploded on to the scene” in recent years, offering coffee at “steep discounts”.
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”: the nation’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, food and drink category director at Mintel China, told the outlet. There are “lattes drizzled with pork sauce” or “spiked” with Chinese alcohol, said NBC News.
So although tea has “long been the drink of choice” for Chinese people, a “coffee culture has boomed”, added the South China Morning Post. |