Rumors of a Starbucks China equity change that have circulated for nearly a year have finally produced a clear outcome. Starbucks and Boyu Capital have reached an agreement to establish a joint venture in China to jointly operate the retail business, with Boyu holding up to 60%, while Starbucks retains 40% and continues as the brand and intellectual property licensor. The deal is based on an enterprise value of approximately US$4 billion, and Starbucks expects the total value of its China retail business to exceed US$13 billion. Looking back at Starbucks' entry into China, from franchising to full direct operation, and now returning to a joint venture model, this shift has sparked widespread attention regarding its future direction. The new joint venture will continue to be headquartered in Shanghai, operate the existing more than 8,000 stores, and plans to gradually expand to 20,000. [more…]

After Luckin Coffee's 9.9 yuan promotion was scaled back, brands like Cotti Coffee and Tims rolled out short-term 9.9 yuan offers to grab market share. Starbucks, which once declared it would "compete on market, not price," recently suffered a system glitch during its March 8 Women's Day promotion, accidentally letting some consumers buy two large drinks for just 9 yuan. The loophole quickly sparked a frenzy of deal-hunting on social media, with some successfully placing orders while others had their payments canceled and refunded after checkout. Starbucks quickly fixed the bug, and the promotional price returned to 49.9 yuan for two cups. This accident not only gave consumers a taste of the thrill of "snagging a bargain," but also reignited discussion about the coffee price war. [more…]

The Honduran coffee industry is facing severe challenges. According to Napoleón Matute, manager of the country's coffee institute (IHCAFE), the drought triggered by El Niño has caused nationwide rainfall to plunge by 40 percent compared with the same period last year, seriously threatening the coffee flowering period and hindering fruit development. At the same time, the coffee berry borer is spreading unchecked across plantations. This pest, reputed to be the most destructive coffee pest in the world, bores into the fruit, reducing both yield and quality. Under the combined effect of drought and pest infestation, Honduran coffee may suffer a double blow in the next harvest season. Matute called on growers to strengthen crop monitoring, and IHCAFE will continue to track the disaster. Although the extent of the yield reduction has not yet been quantified, the losses are expected to be considerable. [more…]

During the G20 summit in Brazil, Luckin Coffee signed a memorandum of understanding with the Brazilian Export and Investment Promotion Agency, planning to purchase a cumulative 240,000 tons of Brazilian coffee beans between 2025 and 2029, with a total value of 10 billion RMB, setting Luckin's largest procurement record. At the same time, Brazil's coffee industry is facing production uncertainty brought by extreme weather: although the current sales pace has accelerated and exports have hit a record high, drought and fires have already damaged the new crop season, multiple institutions have lowered production expectations, and international coffee futures prices have continued to climb. This article will outline the key points of the agreement, Brazil's sales dynamics, and the impact of weather on the supply and demand landscape. [more…]

After Starbucks' franchise in Russia was terminated in March of this year, 130 stores remained closed for a long time. Now, Anton Pinsky, founder of Russian catering company Pinskiy&Co, plans to take over the lease rights of all stores and launch the local coffee chain brand Magadan Krasnodar. This deal is similar to McDonald's previous exit path, but the new brand will no longer use Starbucks' recipes and ingredient supply. Local market analysts believe that local brands have advantages in operating costs and delivery services, and are expected to provide consumers with high-cost-performance, high-quality coffee. [more…]

In the coffee sector, nearly 90,000 new stores have opened in the past year, with a net increase of over 48,000, and amid fierce competition, brands are rolling out various strategies. Cotti, which ranks third in store scale, however, chose to cross over into tea beverages in April, launching new milk tea and fruit tea products unrelated to coffee, which is puzzling—after all, it already owns the tea brand Chamao, which focuses on human-machine collaboration. Behind this strategy is the reality that franchisees are increasingly seeing no hope of profitability and are exiting to cut losses. A franchisee in Hubei reported that the foot traffic data provided during recruitment was severely inflated, and the data used by third-party assessment software was actually outdated from several years ago. The brand relied on these impressive figures to set a record of opening 7,000 stores in 14 months. Now, according to Jihai brand monitoring, Cotti has closed 250 stores in the past 90 days, equivalent to three per day, while Luckin, with more than twice the total number of stores, closed only 89 in the same period. Negative news such as salary cuts, layoffs, and the founder being forced to execute 3 billion yuan in debts has followed one after another, and franchisees are no longer willing to be mere also-rans. [more…]

A major shift is coming to the coffee machine industry. The De'Longhi Group has announced that it will merge the high-end Italian espresso machine brand La Marzocco with the Swiss fully automatic coffee machine manufacturer Eversys to form a new business group focused on the research, development, and sale of coffee machines. De'Longhi paid approximately US$374 million to acquire shares in La Marzocco, and through De'Longhi Industrial indirectly holds a 62.6% stake, becoming its largest shareholder. The two brands will retain independent operations and their existing management teams, and the new group will establish an independent board of directors reporting directly to the CEO of De'Longhi. How will this integration affect the landscape of the high-end coffee machine market? What does it mean for coffee enthusiasts and cafe operators? This article will sort through the details of the deal, the background of the brands, and the outlook for the future. [more…]

Diplomatic friction between Ethiopia and Somalia continues to escalate. Somalia recently expelled Ethiopia's second-ranking diplomat in Somalia, and relations between the two countries are becoming increasingly tense over the Somaliland port agreement. Meanwhile, the Red Sea crisis has caused throughput at the Port of Djibouti to decline, severely disrupting the import and export of major commodities such as Ethiopian coffee. Combined with peak-season shipping price increases, the depreciation of the birr, and the delay of the EU's EUDR, Ethiopian coffee bean prices have risen across the board, and the local coffee industry is facing dual pressure from exports and costs. [more…]

Starbucks is deeply associated with milk-based coffee drinks like lattes and cappuccinos, but it once also owned a juice brand called Evolution Fresh. Recently, Starbucks officially announced that it would sell the brand to Bolthouse Farms, allowing it to concentrate more resources on growing its coffee beverage business. The deal involves nearly 300 employees and is expected to be completed later this year. From a high-priced acquisition in 2011 to its resale now, the fate of Evolution Fresh reflects Starbucks' strategic swings under different leaders. This article will sort through the ins and outs of this sale, and how Starbucks, after Schultz's return, is refocusing on the U.S. coffee market and responding to the wave of unionization. [more…]

The lingering warmth of the weekend has barely faded, and on Monday morning office workers are still steeped in drowsiness, with a cup of coffee becoming essential to wake themselves up. Yet this morning, many early risers discovered that two lattes from Luckin Coffee on the Ele.me platform cost only 6 yuan, and this abnormally low price quickly ignited social networks. Some seized the chance to place orders, joyfully starting the new week, while others had just paid when their orders were unilaterally canceled. Luckin then urgently shut down its Ele.me stores and issued an apology, admitting it was caused by a configuration error by operations staff. This sudden price bug not only left some consumers with false hope, but also sparked discussion about who should pay for corporate mistakes. Was this blunder a mistake or marketing? And how should consumers view the cancellation of low-priced orders? This article will sort out the ins and outs of the incident and bring a professional perspective from Front Street Coffee. [more…]

Recently, a new Luckin Coffee ordering hack has been trending on social media: when ordering an Orange C Americano, note "no coffee liquid" and you'll get a cup of orange juice. Many netizens have followed suit, saying it tastes pretty good, and some even drank three different flavors of coffee-free drinks for three days straight. The discussion this has sparked is quite interesting too—some think it's better to just buy orange juice, while others see it as a new way to grab a 9.9 yuan deal. From the earlier Iced Coconut Latte without coffee liquid to today's Orange C Americano without the Americano, Luckin customers' enthusiasm for DIY ordering seems to never fade. This article takes you through the ins and outs of this "no coffee liquid" trend. [more…]

In recent years, "new Chinese style" has become a hot topic in the food and beverage industry, and coffee is no exception. From coffee served in lidded bowls to collaborations with Chinese-style breakfasts and traditional medicinal herbs, a growing number of coffee professionals are trying to blend coffee with elements of traditional Chinese culture. This localization strategy has indeed opened up a new niche in the coffee market, drawing a great deal of attention on the back of the "national trend" wave. Yet when coffee is draped in a gorgeous Chinese-style exterior, what do people actually remember—the coffee itself, or the exquisite packaging and settings? This article takes an in-depth look at the current state of new Chinese-style coffee and its hidden concerns, reflects on whether the development of coffee culture in China has truly touched the essence, and calls for more professional attention and dedication to coffee itself. [more…]

Kenya's Supreme Court overturned the Court of Appeal's ruling on August 20, finding the 2023 Finance Act constitutional—a move that had previously sparked large-scale protests in the capital Nairobi and other regions. The act doubles the fuel value-added tax, introduces a housing levy, and raises the top personal income tax rate. The opposition and civil society groups expressed deep disappointment, fearing a further rise in the cost of living. For the coffee industry, the tax increases have pushed up production and transportation costs, squeezing profit margins; more seriously, the EU Deforestation Regulation (EUDR), set to take effect in January 2025, could deal a severe blow to Kenya's coffee exports. Currently, only about 30% to 40% of coffee is certified, while smallholder farmers are generally poorly informed about compliance requirements. Front Street Coffee will continue to monitor developments in the producing regions. [more…]

Front Street Coffee has shared quite a few tips on using a moka pot and methods for making coffee with it, yet we've never systematically talked about cleaning and maintenance. As a result, the same question keeps popping up in our messages: what should you do when your moka pot has "gone dark"? So-called darkening refers to the pot's body turning black in spots due to oxidation, which often stems from improper cleaning after use. In fact, cleaning and maintenance are just as important as brewing—maintain your moka pot well and it will last a long time; maintain it poorly and not only will its lifespan be shortened, but it will also absorb odors and affect the flavor of your coffee. Today, Front Street Coffee will explain in detail the correct way to clean a moka pot, the key points of maintenance, and how to repair a moka pot that has already oxidized and turned black. [more…]

Recently, the Manner store inside Chongqing MixC officially closed due to the expiration of its lease and the brand's decision not to renew it. This store, which opened in 2021, was not only Manner's first location in Chongqing, but also the only one among the city's 18 stores to offer baked goods. After the news broke, regulars expressed their regret, with some lamenting the disappearance of the "cheap meal deal" and the loss of a fixed breakfast option on their commute. Meanwhile, although a Manner drinks store still operates on the third floor of the mall's north section, it cannot satisfy customers' demand for bread. This change has also led many consumers to speculate about the brand's future layout plans, with some even spontaneously analyzing the feasibility of Manner opening stores in other commercial districts in Chongqing. [more…]

Ethiopia's security situation has remained tense recently, and the Chinese consulate has issued a travel risk advisory. Several of the country's coffee-producing regions are located in high-risk areas, and clashes between the federal government and local armed groups could deal a severe blow to coffee production, the supply chain, and exports. Although coffee exports hit a record high in the first nine months of this fiscal year, the looming civil war, transport blockades, and the possible cancellation of the Cup of Excellence competition are all casting a shadow over the country's coffee industry. This article will review the current risk areas, the background of the conflict, and its potential impact on the coffee sector. [more…]

The fate of Starbucks in Russia has finally been settled. From suspending operations in March of this year to announcing its exit from the market in May, 130 stores were once at a standstill. At the end of July, Russian rapper Timati announced via social media that the local catering company Pinskiy&Co had successfully completed the acquisition of Starbucks' assets in Russia. The new brand name and logo have not yet been determined, but the first store is scheduled to open in August, and the number of stores will exceed 200 by September. What are the details behind this acquisition? How will the new brand make a fresh start? This article takes you through the entire course of events. [more…]

Mstand has long been known as a "merchandise maniac," and its recent launch of two limited-edition denim bags quickly sparked a buying frenzy. However, some consumers noticed during checkout that a 100-yuan member discount appeared in the discount section of the mini-program's settlement page. When stacked, this meant that for just 19.6 yuan, they could get a three-use card package originally priced at 100 yuan, plus a 28-yuan Americano. After this anomaly was shared online, a large number of users rushed to register as members in the mini-program to try to replicate it, but few succeeded. Was it a system glitch or a traffic-driving tactic? How did the company handle it afterward? This article will sort out the whole incident. [more…]

Bialetti, Italy's national brand famous for its moka pots, has recently been reported to be fully acquired by Nuo Capital, a private equity fund under Hong Kong's Packcheng Group, in partnership with the founding family of Hermès. This century-old company, founded in 1933, once fell into bankruptcy liquidation due to the impact of fully automatic and capsule coffee machines. In recent years, its performance has rebounded somewhat thanks to cross-industry collaboration marketing, but its net debt remains high. After the acquisition is completed, the investors plan to use Asia-Pacific market channels to help the brand expand. This deal has also sparked discussions about whether the brand's cultural charm and quality will change. Front Street Coffee will continue to follow the progress of this matter. [more…]

Luckin Coffee recently launched a "10,000 stores celebration" campaign with 9.9 yuan promotions. While consumer enthusiasm is high, the work pressure on store employees has also surged sharply. On social media, many Luckin workers have complained about overflowing orders, physical exhaustion, and even losing two jin in four days. Although this promotion has brought the brand considerable transaction data and attention, whether the sustained low-price strategy can be maintained in the long run has become a focal point of industry discussion. This article will take you behind the scenes of this 9.9 yuan frenzy. [more…]