Where Are All the Multinational Coffee Companies Going in China Right now?

Helen Dou 2013.05.29.

Starbucks:

Starbucks Goes on Chinese Grocery Shelves and into Chinese Families

Currently, Starbucks has more than 1,000 stores in China and is planning to open 1,500 by 2015. Not limited to the increase in store front, Starbucks has been investing on other distribution channels, especially in grocery. K-Cups and other products that could be taken home are becoming Starbucks' new hits. In doing so, Starbucks aims at increasing its home/indoor presence. Besides, the coffee drinks are expected to be found outside of Starbucks stores - the frappuccinos are about to be introduced into grocery store in China soon.

Starbucks China University

Starbucks' launched a Starbucks China University in Beijing in November, 2012. The curriculum covers all aspects of Starbucks operation in China. The institution is to provide talents for China's Starbucks growing business. An known goal of Starbucks is that to make China its second largest market worldwide.

Starbucks Farmer Support Center

Starbucks has established its first Asia farmer support center in Pu Er City, Yunnan Province, China. Starbucks has the commitment to elevate Yunnan province as a high quality coffee growing region. Starbucks has been working closely with farmers in Yunnan province and putting in efforts into local environment sustainability.

Resources: ChinaDaily, Forbes

Pacific Coffee Company

Advantage: Pacific Coffee Company is a subsidiary of China Resources Enterprises, Ltd, which gives Pacific Coffee Company a great advantage on the store locations in China. CRE has set aside HKD $5 billion for supermarket acquisition in China, while Pacific Coffee Company has planned to open stores in the Chinese supermarkets. Combined just looks perfect for Pacific's coffee business and for CRE's supermarket business.

Ambition: Pacific Coffee Company has stated its goal to be number one coffee house in China. It's competitor is Starbucks.

Geographical Information: 15 coffee shops in Shanghai

Resources: bloomberg, china south post

The Coffee Bean & Tea Leaf

Shanghai: 25 stores

Innovation: introducing the single-serve beverage system CBLT. This machine makes coffee making at home handy, but it's not for sale in China yet. The Coffee Bean & Tea Leaf

Campaigns: there is not obvious campaign since Feb 2012. 

Current Strategy:

- Tier 1 cities, and then tier 2 cities

- So-called "Win in China" strategy (no further detail had been revealed)

- Find a few developers for certain areas

Resources: cnbc, coffee bean china

85 degree C

Progress: 5 new stores have been opened in 2013 in Chengdu, Nanchang, Changsha, Chongqing, and Xinsu

Product range: coffee, milk tea, cake, and bread. This is very different from all other coffee brands, majorly because the brand provenance is Taiwan, which understands well about Asian customers. The brand focus is on bakeries.

In terms of social media efforts, all brands have official Weibo accounts and promote the lifestyle and new products.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of StartJG Hong Kong.