The growth of Starbucks in China, a country known for its obsession with tea (‘all the tea in China’) is nothing short of amazing. When I first heard that Starbucks was planning to open a new store in China every day for the next five years, I started worrying about whether there was enough coffee in the world to satisfy the growing demand in China.
And then came Luckin, the fast rising competitor, which listed on the Nasdaq last week, is already trading at 20% above its list price and ‘has nearly 2,400 stores compared to Starbucks’ 3,500, but it has plans to more than double that number by the end of the year as it seeks to become the country’s coffee king’. Can that really be possible?!
Luckin is only 18 months old and is taking on one of the best known companies in the world in a market which is likely to start rejecting US brands as the trade war deepens. And keep an eye on those coffee beans futures!