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Shanghai Raids Counterfeit Starbucks Street Coffee Delivery Shop in Jiading

October 26, 2023
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How a Counterfeit Starbucks Coffee Shop Operated as Street Coffee

Market regulators in Shanghai's Jiading Industrial Zone shut down a coffee shop that sold counterfeit Starbucks drinks on delivery platforms while posing as a purchasing agent for the brand. Officers seized cups, syrup, bags and other packaging bearing the Starbucks logo. The shop had operated this way since August 2023 without authorization, according to investigators.

The case, reported in late October, came after a citizen complaint and a joint operation with Loutang police. Officials said the storefront served as a cover for the scheme, with concealed methods and clear intent. The incident points to gaps in delivery platform screening and the loose circulation of branded packaging, a reminder that the street coffee people order online may not come from the brand it claims.

Recently, the Market Supervision and Management Office of Shanghai Jiading Industrial Zone received a report from a citizen and shut down a store that used a coffee shop as a cover to sell counterfeit coffee on delivery platforms under the guise of a Starbucks purchasing agent. A large number of packaging materials bearing the Starbucks logo were seized at the scene, including cups, syrup, and bags. Such incidents have been common in recent years, exposing problems such as loopholes in delivery platform review and the unrestricted circulation of branded materials. When buying coffee, consumers should choose legitimate stores to avoid falling into counterfeit traps. Front Street Coffee reminds you to follow coffee industry news, and even more importantly, to pay attention to the source and quality of every cup of coffee.

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According to a report from Shanghai Jiading on October 26, the Market Supervision and Management Office of Shanghai Jiading Industrial Zone recently received a citizen report that a coffee shop was suspected of making and selling counterfeit Starbucks coffee.

After receiving the report, law enforcement officers from the market office immediately launched an investigation and found through preliminary screening that this was a coffee shop not belonging to the Starbucks brand, but every corner of the store and its warehouse were piled with large numbers of cardboard boxes printed with the Starbucks logo.

"He sold counterfeit coffee on delivery platforms under the name of a Starbucks coffee purchasing agent store," said Li Wenguang, director of the Market Supervision and Management Office of Jiading Industrial Zone. "The store used running a coffee shop as a 'cover,' with concealed methods and obvious subjective intent. After receiving the reported leads, we immediately set up a special task force and concentrated our strongest forces to strictly investigate the illegal conduct."

In this operation, the special task force coordinated with police officers from the Loutang Police Station and went to the coffee shop together to investigate and deal with it. According to the investigation, since August 2023, without authorization from the Starbucks company, the party involved had accepted orders and made and sold counterfeit Starbucks coffee in the name of "purchasing agent." When a consumer placed an order at its "Starbucks coffee purchasing agent store," the party involved would immediately produce counterfeit Starbucks coffee products according to the requirements noted in the order, and then complete delivery.

As of the day of the investigation, the purchasing agent store in Shanghai had been ordered to close. The conduct of the party involved was suspected of infringing exclusive rights to registered trademarks. Law enforcement officers have sealed and seized the items involved bearing the Starbucks logo at the scene, including 5,900 cups, 962 bottles of syrup, and 18,000 bags.

At present, law enforcement officers have handed some of the items involved to the trademark rights holder for verification and identification, and the case is still under further investigation.

In fact, incidents of posing as Starbucks purchasing agent points while actually making and selling counterfeit coffee have occurred frequently in recent years. Among them, the most widely known is the "counterfeit Starbucks takeout in a rented room" case reported by Sichuan Observer Network last year. Not only were the brand logo, product prices, and packaging consistent with regular Starbucks stores, but sales were also astonishing, reaching 729 orders, with the amount involved exceeding 40,000 yuan.

Delivery proxy purchase stores actually become counterfeit Starbucks dens? A store in Shanghai Jiading has been investigated

The reason these stores could achieve such convincing counterfeits is not only problems in the management and review of major delivery platforms, but to a large extent also the fact that many materials bearing the Starbucks brand logo are readily available on shopping platforms.

For example, when we open Taobao and search for Starbucks syrup or Starbucks paper bags, we can easily buy these products bearing the Starbucks logo. A consumer who had purchased such syrup said: it still feels like the color is somewhat different from what is seen in Starbucks, but the taste is still close.

Starbucks has a dedicated delivery service, and its coverage is extremely high. Almost every store in every city has delivery service, so consumers do not need to choose purchasing agent services. At the same time, this incident also reflects problems in the management and review of major delivery platforms. Relevant law enforcement departments stated that they will summon the persons in charge of the delivery platforms for talks, and also remind consumers that when purchasing products and services, they must choose legitimate stores for consumption!

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The above content is compiled by CoffeeHunters, a coffee news website.

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