PUER, China—Starbucks Corp. signed a deal with the Chinese provincial government of Yunnan to set up its first-ever coffee-bean farm in the world to cater to a rapidly growing population of coffee drinkers in China amid a global battle for quality coffee beans.
In the southwest province steeped in thousands of years of tea production, the Seattle-based coffee chain is hiring and training local coffee growers. The hope is that Chinese-grown arabica beans, a bitter-earthy variety, will fill the cups of a culture that is acquiring a growing taste for coffee.
China's thirst for coffee is surging. Coffee sales climbed 9% last year to 4.6 billion yuan ($694 million), according to research company Euromonitor International. Starbucks currently operates 400 stores in mainland China and has plans to open a thousand more in the coming years.
China is poised to become Starbucks' second-largest market behind the U.S., overtaking Canada, Japan and the U.K.
Starbucks' 2010 revenue jumped to $10.7 billion, up 9.5% from 2009. International store sales increased 6%. The company, which has a nearly 70% market share in China, according to Euromonitor, declined to provide specific information on its growth in the country. Starbucks is in its second year of recovery after cutting $600 million from its operating costs. U.S. sales are picking up, but the company isn't opening new stores there. Starbucks is looking for new ways to grow.
http://online.wsj.com/article/SB10001424052748704462704575609733431622088.html
No comments:
Post a Comment