Starbucks is to ramp up expansion plans for China in an effort to make the nation its second biggest market after the US by 2014.

The expansion plans will take Starbucks network to 1500 spanning across 70 Chinese cities by 2015 from 400 stores operating in 48 cities at the moment, according to Starbucks China and Asia Pacific head John Culver.

During the first quarter last year, the coffee brand earned US$166.9 million from China and Asia-Pacific.

“We see tremendous opportunity to continue to grow in cities that we are currently in – those tier one, tier two cities,” Culver said.

Starbucks will also roll out new offerings for its customers – a new line of premium single-cup coffee called Verismo to be released later this year. Energy drinks and fruit juice drinks will also widen the brand’s offer.

China outlets are wholly owned by Starbucks, except the stores in Shanghai, Zhejiang and Jiangsu which are jointly owned with Taiwan’s Uni-President Enterprises Corporation.

China’s coffee shop market is eclipsed by Starbucks which holds 66.3 per cent share in 2010. Other dominant coffee shops are Costa Coffee which holds 8.9 per cent and McDonalds with an eight per cent market share.

Rivalling Starbucks in expansion is Italian coffee shop operator Luigi Lavazza SpA which announced more than 200 shop openings over the next three years.

GB