Your weekly round-up of the five biggest stories from across the global coffee industry...
- Greggs is investing to strengthen its leading market share
- Nespresso turns attention to aluminium after pulling the plug on paper capsules
- New CEO for Keurig Dr Pepper’s future Global Coffee Co
- Retail group takes direct control of key Starbucks markets in East Asia
- Luckin Coffee explores Middle East expansion after stake sale
1. Greggs risks rocking the boat in bid to become a 3,500-store brand
Food-to-go and coffee chain Greggs is investing in infrastructure to serve at least 3,500 outlets and to extend its lead as the largest operator in the UK branded coffee shop market.
However, to ensure it can deliver its expansion strategy at scale, Greggs has made a difficult and potentially controversial decision – closing four in-house manufacturing sites and cutting hundreds of jobs.
The move comes amid a purple patch for the popular sausage roll and steak bake maker, with trading across the first nine months of 2026 lifted by new iced beverage, salad and premium hot food ranges.
Will the fiscal reward of consolidating its in-house supply chain outweigh the reputational risk?
2. Nespresso to phase out home compostable paper coffee capsules
Swiss coffee pod giant Nespresso has confirmed that it will phase out its range of home compostable paper capsules, three-and-a-half years after bringing them to market.
The Nestlé-owned B Corp launched the range across 14 European markets, but is now focused on recycling aluminium capsules following concerns over the shelf life of its paper coffee capsules.
Nespresso has over 100,000 dedicated and partner collection points globally for its aluminium capsules, according to its website, including its 800 branded boutique outlets, where it retails its product ranges across 76 markets.
3. Keurig Dr Pepper appoints new CEO for Global Coffee Co spinoff
As part of its $18bn acquisition of JDE Peet’s, Keurig Dr Pepper (KDP) is planning to split into two US-listed companies, Global Coffee Co and Beverage Co, during the first quarter of 2027.
After its initial hire, Rafael Oliveira, U-turned on his decision to lead the future Global Coffee Co, KDP has now appointed a former Kimberly-Clark, Bain and Company and Mondelez International executive to the role.
Tasked with building the company that will “shape the future of coffee”, Russ Torres joins the business at an exciting, but highly pressurised, time.
4. Hong Kong retail group takes control of seven Starbucks markets in East Asia
Hong Kong-based DFI Retail Group has assumed full control of Starbucks operations in seven East Asian markets after joint venture partner Maxim’s Group exited the business.
The deal, which includes 1,100 stores across Hong Kong, Thailand, Singapore, Vietnam, Cambodia, Macau and Laos, is the latest reorganisation of Starbucks’ business in the region.
In April 2026, the US coffee giant sold a $4bn majority stake in its 8,000-store China business to Hong Kong-based investment firm Boyu Capital. Three months later, reports also emerged that Starbucks was exploring a majority stake sale in its highly profitable Japan business.
5. Luckin Coffee eyes Middle East debut after $1bn Mubadala stake sale
Seven years after initially exploring expansion in the Middle East, China’s largest coffee chain is revisiting the idea.
This time, Beijing-based Luckin Coffee is doing so with newly onboarded local expertise, having sold a significant $1bn stake to Abu Dhabi’s Mubadala Investment Company at the start of September 2026.
Luckin has been successful in its international launches to date, rapidly scaling in Malaysia, reaching 100 stores in Singapore and steadily building a notable presence in New York, US.
A Middle East launch would open a new competition front with several scaled Western chains, such as Starbucks, Dunkin’, Tim Hortons and Costa Coffee, while also putting Luckin in direct competition with several of the Middle East’s fastest-growing branded coffee chains.
It could also move the brand closer to becoming the world’s largest coffee chain in 2027...
