Starbucks has opened its China Coffee Innovation Park, completing what it dubs its “scaled vertical integration” from bean to cup across a single region.
Starbucks has invested RMB1.5 billion (about US$220 million) in the park since it was first announced in March 2020, making it the highest investment in any Starbucks coffee manufacturing and distribution centre outside of the US.
“As one of the largest consumer markets in the world, China presents tremendous opportunities for Starbucks,” said Laxman Narasimhan, CEO of Starbucks Coffee Company.
“The Coffee Innovation Park highlights Starbucks’ foresight in elevating the supply chain through digitalisation and advancing our sustainability agenda, enhancing our unique competitive advantage as we accelerate our global growth.”
The 80,000sqm China Coffee Innovation Park includes a roasting facility, a distribution centre, as well as an experience centre, and is situated in Kunshan, a city one hour from Shanghai.
The company says the park will mix and roast premium Arabica green beans supplied from more than 30 nations across the world – including China – while presenting the ‘bean-to-cup’ coffee journey to guests and providing training in coffee-related issues – all in one location.
China has grown to be one of Starbucks’ most significant markets worldwide since the company made its debut there in 1999. It is working towards a goal of operating 9000 stores across 300 Chinese cities by 2025 and investing more than US$450 million. To date, it has built a footprint of more than 6500 stores in more than 250 Chinese cities.
