US coffee chain Starbucks has opened its first coffee bean farm and processing plant in China. The venture in Southwestern Yunan province has aimed at boosting sales, and convincing more Chinese to switch from tea to coffee. Since opening its first one in Beijing in 1999, Starbucks now has over 800 stores across China. But Starbucks chairman Howard Shuets has his eyes set on further expansion.
We're in 31 cities, and the cities that most Americans have never heard of, and the response is like Shanghai and Beijing, it's unbelievable to us. And so, we want to be aggressive and at same time, we want to demonstrate the kind of company we are in doing the right thing.And by that I mean, making sure we're investing in our people, providing our customers with a great place to enjoy coffee. And in terms of what we can do here in Yunan, the old kind of relationship with coffee farmers, where we demonstrated, we're gonna pay premier price for the highest quality coffee in the world. I think, do something that's not been done before. It's the first time Starbucks will grow its own coffee as the company presently buys its coffee beans from farmers in over 30 countries. Under the agreement signed on Friday, the Yunan government will invest 453 million to expand production by over 5 times to 200,000 tons by 2020. Farmers like Qian Kuoyeng have been joined to the promise of higher salaries. "Us, coffee farmers, don't really understand the cultivation of coffee. But according to current national indications, we know that poor cities are vigorously promoting the growth and cultivation of coffee.Other than that, us, farmers don't know much more. "Starbucks hopes the deal will spark coffee growth in the region, and allow it to bring Yunan's distinctive coffee flavor to local customers like Mr. Lee. But I think I would like to try this new product, because after all, this is China's own product, so I think, if I would to try it, and it tasted ok. They wouldn't be any problem. The Seatle-based Chain hopes China will eventually become its second home market after the US. Aron Gay, Reuters. |