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Starbucks to market Yunnan coffee in China outlets

Starbucks Corporation senior vice president and president for greater China Wang Jinlong said that the coffee chain will launch its first local coffee beverages in China, using coffee beans grown in Yunnan province, according to media reports.

In light of increasing food safety concerns in China, Wang said that Starbucks would establish a strict inspection and quality control system for local suppliers in Yunnan.

In 2007, Starbucks representatives visited with coffee farmers in southern Yunnan to help them meet company sourcing standards, with an eye on launching Yunnan coffee within China's domestic market and perhaps even internationally.

The move by Starbucks to localize some of its coffees in its China outlets is seen by analysts as a response to the current global financial crisis, trimming transportation costs and reducing tariffs paid on imported coffee beans.

Despite aggressive expansion in mainland China and sourcing Yunnan beans, Starbucks has yet to open retail outlets in Kunming or elsewhere in Yunnan.

Comments

• • founder
    November 4, 2008

  • "Despite aggressive expansion in mainland China and sourcing Yunnan beans, Starbucks has yet to open retail outlets in Kunming or elsewhere in Yunnan." Good! -- the last thing we need in Yunnan is an international chain replicating here what can be found on streetcorners every place else in the world you go these days. Let's hope Yunnan remains distinctive.

• • Ouyang
    November 4, 2008

  • Huh? How is Yunnan distinctive from rural areas in any other country with a centrally controlled economic system(which is pretty much any "modern and developed" country today)? How is The Brother's Jiang expanding everywhere in Yunnan different from Starbucks trying to expand in Yunnan?

    Do you think Iowa has lost its distinctness because of all the Mexican and Chinese restaurants that have opened up? Oh wait, even though they almost all serve the same food, and their suppliers are almost all the same... it's so much better because they all have a different name... cripes, it's just marketing.

    You can go to any city in Yunnan and you will see the same products being sold in all of them. What does it matter if the name of the store is in Chinese or in English? Does this somehow prevent you from speaking to the people who work there? Does it stop you from taking your time? It's just a marketing symbol, get over it.

• • Clandestinjo
    November 6, 2008

  • Cheers founder! If Europe or America are models for the "Starbucks impact" there will be no more Salvadors, French Cafe or Prague in the future. Starbuck will take over WenLin Jie (because we go there) and the beautiful diversity of coffee shops in this town will vanish. So Ouyang, no I will not get over it.

• • hedgepig
    November 6, 2008

  • just imagine: "Salvador's opens 50th store in Peru"

    what then? the horrors! a successful indie brand from Kunming has gone global, and that makes them "bad", just because of their success?

    and i expect Salvador's would have the sense to change their menu for different markets, as most international chains in China have.

    brands are everything, and the market is always right.

• • John
    February 1, 2009

  • Starbucks offers a certain kind of environment that most Asian replications can't duplicate. Starbucks will fill the lack for the many people who enjoy this kind of environment. For those that don't, the local coffee shops won't go anywhere.

• • Rabbit
    March 5, 2009

  • I just hope their toilet is Western..

• • The Flying Fox
    February 18, 2010

  • I agree with hedgepig, Starbucks is everywhere because they know how the market works and can make good coffee. I can't wait for one to come to kunming, most of the small coffee shops will still get business if the coffee is any good. Most of the coffee at those small places is crap though, so Starbucks will make them improve their own coffee

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