- Title: CHINA: Starbucks opens it first ever coffee bean farm in Yunnan
- Date: 16th November 2010
- Summary: KUNMING CITY, YUNNAN PROVINCE, CHINA (ORIGINALLY 4:3) (NOVEMBER 12, 2010) (REUTERS) MAN SPEAKING AT SIGNING CEREMONY MEN STANDING AT SIGNING CEREMONY STARBUCKS CHAIRMAN HOWARD SCHULTZ STANDING AT CEREMONY VARIOUS OF MEN SIGNING AGREEMENT MEN STANDING AND SHAKING HANDS SIGN READING YUNNAN AND STARBUCKS KUNMING CITY, YUNNAN PROVINCE, CHINA (NOVEMBER 12, 2010) (REUTERS) (SOUNDBITE) (English) STARBUCKS CHAIRMAN AND CEO, HOWARD SCHULTZ, SAYING: "We're in 31 cities, and in 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 the 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're going to do here in Yunnan, build the kind of relationship with coffee farmers where we demonstrate we're going to be paying a premium price for the highest quality coffee in the world, and I think do something that has not been done before." PU'ER CITY, YUNNAN PROVINCE, CHINA (NOVEMBER 13, 2010) COFFEE FIELDS PEOPLE FARMING IN COFFEE FIELDS COFFEE PLANTS PERSON WALKING THROUGH COFFEE PLANTS VARIOUS OF MAN'S HAND PICKING COFFEE BEANS FARMERS PICKING COFFEE BEANS COFFEE BEAN COFFEE FARMER CHEN GUOYIN PICKING COFFEE BEAN HAND PICKING COFFEE BEAN COFFEE BEANS IN BASKET (SOUNDBITE) (Mandarin) COFFEE FARMER CHEN GUOYIN SAYING: "Us coffee farmers don't really understand the cultivation of coffee. But according to current national indications we know that Pu'er City is vigorously promoting the growth and cultivation of coffee. Other than that, us farmers don't know much more." SHANGHAI, CHINA (NOVEMBER 10, 2010) (REUTERS) EXTERIOR OF STARBUCKS STARBUCKS LOGO MAN EATING OUTSIDE STARBUCKS STARBUCKS CUP STARBUCKS EMPLOYER MAKING COFFEE EMPLOYEE ADDING WHIPPED CREAM TO COFFEE
- Embargoed: 1st December 2010 12:00
- Keywords:
- Location: China
- Country: China
- Topics: International Relations,Industry
- Reuters ID: LVA87JQDVG6O8SIYRK8OYXGXPH27
- Story Text: U.S. coffee-chain Starbucks is courting the Chinese coffee market by opening its first coffee bean farm and processing facility in China's southwestern Yunnan Province, a move aimed at boosting sales in China.
The Seattle-based coffee chain hopes to make China the brand's second home market outside of the U.S., it's chairman Howard Schultz said as he sealed the deal with Yunnan government officials on Friday (November 12).
Though the Chinese traditionally drink tea, the Starbucks brand has grown exponentially in the country.
Since opening its first store in Beijing in 1999, Starbucks now has more than 800 stores in the greater-China region and it hopes this new deal will help the company expand, said chairman Howard Schultz.
"We're in 31 cities, and in 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 the 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're going to do here in Yunnan, build the kind of relationship with coffee farmers where we demonstrate we're going to be paying a premium price for the highest quality coffee in the world, and I think do something that has not been done before," he said.
This venture marks the first time Starbucks will grow their own coffee beans, as they currently purchase their coffee from farmers in over 30 different countries.
Under the agreement, the Yunnan government will invest 453 million U.S. dollars in expanding green bean volume from the current 38,000 tons to 200,000 tons by 2020, Starbucks said in its press release.
The agreement comes at a time where commodities speculation has produced the highest coffee prices in over 15 years.
Though Schultz says that speculators are the main benefactors of the price increase, the promotion of the coffee in Pu'er city has already witnessed many farmers gravitating to the industry to achieve greater salaries.
"Us coffee farmers don't really understand the cultivation of coffee. But according to current national indications we know that Pu'er City is vigorously promoting the growth and cultivation of coffee. Other than that, us farmers don't know much more," coffee farmer Chen Guoyin said.
The company hopes that this new venture will spark coffee growth in the region and bring the distinctive Yunnan coffee taste to international customers, a move that appeals to many local Starbucks customers.
"I think I would like to try this new product because after all this is China's own product, so I think if I were to try it and it tasted OK, there wouldn't be any problem," Starbucks customer Li said.
However, others, like customer Zhang Lu, worry that it may alter Starbucks' distinctive flavour.
"In terms of the Asian Yunnan coffee, before I traveled to Yunnan and I tried their coffee, and I thought the taste was really bland. It was like that type of sub-tropical coffee beans, and the taste is definitely different from other coffee, so if they sell this coffee, then I won't choose Starbucks," she said.
Some customers may object but the U.S. coffee-giant has it's sights set on China's lucrative market and is determined to lure the nation of tea-drinkers towards it's own brand of bean. - Copyright Holder: REUTERS
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