Your weekly round-up of 5 essential coffee industry stories you won’t want to miss...
- The biggest operational shift for Starbucks in China since 1999
- KDP’s $18bn acquisition of JDE Peet’s
- Blank Street’s next big move?
- Costa Coffee is approaching US growth differently
- Why South Korea’s largest coffee chain faces tough choices as it turns 25
New era for Starbucks in China as $4bn majority stake sale finalised
CEO Brian Niccol has hailed China as one of the “most exciting long-term opportunities” for Starbucks, which is striving to regain the initiative against fast-growing domestic discounters.
Enter Hong Kong-based private equity firm Boyu Capital, which has completed a deal to take a 60% stake in Starbucks’ 8,000-store business in China.
The deal represents the biggest operational shift for Starbucks in China since it entered the market in 1999.
But will it move the dial against low-cost domestic operators such as Luckin Coffee, Cotti Coffee and Mixue’s Lucky Cup?
KDP completes $18bn JDE Peet’s acquisition, CEO announced – full report
US beverages giant Keurig Dr Pepper (KDP) has closed its $18bn acquisition of JDE Peet’s, paving the way to create a global cross-channel coffee powerhouse.
More than 130 coffee brands with vast global distribution networks are now under one roof.
Find out what the deal could mean for the global coffee industry in our full report on the largest coffee deal ever made.
As Blank Street reportedly seeks $100m more, what’s next for the Gen Z trailblazer?
New York-based Blank Street is a master of Gen Z marketing and has big ambitions as a global lifestyle brand. With major new investment on the cards, what could its next phase of growth look like?
Founded in 2020 by Vinay Menda and Issam Freiha, Blank Street has evolved from a single coffee cart in New York to a trend-setting coffee chain whose formidable market influence extends far beyond its relatively modest portfolio of fewer than 100 stores.
Its rise has been driven by savvy marketing and an uncanny ability to stay ahead of the curve of industry trends. Most notably, Blank Street was an early entrant in one of the coffee industry’s fastest-developing categories – matcha.
Find out here how Blank Street could spend $100m.
Why Costa Coffee isn’t relying on coffee shops to deliver US growth
Costa Coffee’s expansion in the US is gaining momentum, but not via traditional coffee shops.
The UK-based coffee chain opened its first brick-and-mortar café in the US in August 2022, but has since added just four more, all in Atlanta, the home city of its parent company, Coca-Cola.
Its latest deal gives Costa access to millions of US consumers every year without ever having to open a new store. It follows a strategic, if unconventional, approach to growth for an operator that has long traded on its coffee house credentials.
As South Korea’s largest coffee chain celebrates 25 years, it faces tough choices at home
25 years after opening its first store, Ediya Coffee is South Korea’s largest coffee chain by outlets. But with faltering sales and underperforming franchisees, it is also under pressure in a crowded market increasingly dominated by value-focused competitors.
It now faces a delicate balance between optimising operations and maintaining its market lead.
Find out how Ediya Coffee and South Korea’s other largest coffee chains are adapting to an increasingly competitive and cost-conscious market.
