Production | Tiger Sniff Business Group
Author ｜ Knock Grid
Title Map ｜ IC Photo
Starbucks is refilling in China.
On March 13, Starbucks announced that it will build a coffee innovation industrial park in China, integrating coffee roasting and intelligent warehousing and logistics, and settled in Kunshan, Jiangsu. The first phase of the project will invest about 900 million yuan (130 million US dollars) to build the main body of the park-the coffee roasting plant.
This is Starbucks’ largest productive strategic investment outside the United States, and its first in the Asia Pacific market. Starbucks previously had 6 baking plants worldwide, of which 5 were in the United States and 1 in the Netherlands.
After signing an agreement with the Kunshan Economic Development Zone, Starbucks’ coffee roasting plant will start construction in the second half of this year and is expected to be completed and put into operation in the summer of 2022. According to foreign media information , Starbucks’s previous baking factory Founded in 2007, it is located in South Carolina, the United States, and officially started production in 2009. Since then, Starbucks has not made major productive investments for more than 10 years.
China’s importance to Starbucks is self-evident. According to the 2019 financial report released by Starbucks, the company’s global revenue in fiscal 2019 was US $ 26.509 billion, of which China’s revenue reached US $ 3 billion, which is the most important market outside the United States.
The timing of the agreement with Kunshan Development Zone is special for Starbucks. According to the operation report released by Starbucks on March 5, affected by the epidemic, it is expected that the business in China will be in Q2 fiscal year 2020. (Three as of March 31, 2020 (Monthly) Revenue will be reduced by up to $ 430 million. In addition, Starbucks announced in its Q1 financial report on January 28 that the outbreak may hinder Starbucks’s store expansion this year, and some new stores planned to open in 2020 may be postponed to 2021.
Under such circumstances, the cooperation of an 80,000-square-meter industrial park has been finalized, and we can see that Starbucks is determined to invest in China.
What’s the freshest in China?
When completed, this bakery will have an annual production capacity of more than 60,000 tons and will become Starbucks’ largest bakery outside the United States. According to Starbucks, after completion and production, in addition to coffee beans from China, coffee beans from various high-quality coffee producing regions around the world will be roasted here.
In fact, Starbucks’ planning for this industrial park is not limited to “baking”. According to information provided by Starbucks, this coffee innovation industrial park will design the storage, roasting, packaging, distribution of coffee beans, as well as research and development and training related to coffee roasting.
This means that Starbucks moved a more comprehensive coffee industry chain into China.
Before that, in 2012, Starbucks set up a “Starbucks Yunnan Planter Support Center” in Pu’er, Yunnan, and set up professional agronomists to provide local farmers with knowledge training and technical support in planting, processing, and more. In addition, Starbucks loves The Sakai factory will also buy coffee beans from local farmers. In September 2019, Starbucks officially launched two new Yunnan Zhenxuan coffee beans in Zhenxuan stores nationwide, one is a blended bean, and the other is a single production region of coffee beans, symbolizing the world’s largest coffee chain brand. Recognition of Yunnan coffee quality.
The cultivation of green coffee beans is the most upstream of the entire coffee industry chain, and roasting is a very critical step in the coffee making process. After undergoing steps such as dehydration, high-temperature cracking, and cooling, coffee green beans become cooked beans with varying degrees of roasting. Cooked beans can be sold directly to cafes to make freshly ground coffee, or they can be further processed into products such as extracts and instant coffee powder.
The problem is that coffee roasted beans with different degrees of roasting have “best flavor periods” of varying lengths