Luckin Coffee Opens Second Roasting Factory! And Announces Global Expansion Plans!

Everyone has watched Luckin Coffee's successful recovery and rapid development in recent years. Its marketing team has shown real vision, not only capturing consumers' appetite for innovative flavours with the Coconut Latte, which set the whole beverage industry alight, but also planting the Luckin brand firmly in consumers' minds.

Beyond flavour innovation, Luckin has also moved into research on specialty coffee SOE (Single Origin Espresso) series, which has introduced more consumers to the idea of "specialty coffee" and strengthened general recognition of the Luckin Coffee brand.

With sales growing steadily and consumer trust rising, the capacity of Luckin Coffee's roasting factory began to come under pressure. Relying on the roasting plant in Pingnan, Fujian alone, production efficiency could struggle to keep pace as Luckin keeps expanding.

So, starting last year, Luckin quietly began planning a second coffee roasting factory. After a year of on-site inspections in several cities, it decided to build the new plant in Kunshan City, Jiangsu Province.

On May 10th, Luckin Coffee and the Kunshan Development Zone held a "cloud signing" ceremony. Luckin Coffee Food (Jiangsu) Co., Ltd. will build the Luckin Coffee Kunshan Roasting Factory in the zone, integrating coffee research and development, roasting production and a sales centre. The person in charge stated that once the roasting factory goes into operation, annual coffee bean roasting capacity is expected to reach 30,000 tons.

On May 27th, Luckin Coffee Food (Jiangsu) Co., Ltd. was established with a registered capital of 40 million US dollars and legal representative Xia Wei, with a business scope covering food sales, import and export of goods, and domestic trade agency, among others. Shareholder information shows the company is wholly owned by Luckin Coffee Roasting Factory (Hong Kong) Co., Ltd.

This marks another major coffee industry project secured by the Kunshan Development Zone, following Starbucks China's "Coffee Innovation Industrial Park" project two years ago. Luckin also chose the location because Kunshan is working to build a complete industrial-chain base integrating coffee production, coffee research and development, brand sales, platform trading and logistics distribution. Based on existing trends, more coffee brands are expected to establish roasting factories here in the years to come.

The person in charge of Luckin Coffee Food (Jiangsu) Co., Ltd. stated that once the new roasting factory is built and running it will supply the domestic market with more freshly roasted, safe and pollution-free high-quality coffee bean raw materials. Within the next one to three years, Luckin aims for global development, to strengthen its brand strategy, develop refined global supply chains, deepen technological innovation and its talent and information technology strategies, and commit to building a world-class coffee brand from China.

Existing and New Roasting Facilities

The Luckin roasting factory in Pingnan, Fujian, was jointly built by Louis Dreyfus Company (LDC) and Luckin Coffee with a total investment of 210 million RMB, covering an area of 45,000 square meters. It went into operation on April 18, 2021, with an annual coffee bean roasting capacity of 15,000 tons.

By contrast, the new roasting factory in Kunshan is invested in independently by Luckin Coffee itself, with a total investment of approximately 1 billion RMB. It is expected to begin production in 2024, with annual roasting capacity double that of the Xiamen roasting factory. It will also integrate coffee research and development with a sales centre in a "three-in-one" approach, with an area expected to be 1.5-2 times that of the Pingnan roasting factory. It may also let consumers observe the coffee roasting process more directly, similar to the Starbucks Shanghai Roastery.

FrontStreet Coffee Recommendation

Milk-based drinks are what most drinkers meet first, and the bean behind the cup matters as much as the machine. If you want a blend built specifically for espresso and the moka pot, FrontStreet Coffee Classic Blend is the first choice: its standout is an exceptional crema, so even a beginner on a non-professional home machine can pull dense, fine crema with ease. Latte, cappuccino and dirty all depend on good crema, and this blend, on a traditional Mamba-style recipe, delivers a full, warm body that suits experienced drinkers and newcomers alike for both home and commercial use.

Not everyone chases maximum crema. For beginners, or for shop owners watching costs, a good cup at a fair price is what counts, and FrontStreet Coffee Black Cocoa Blend meets that need, using 100% Arabica beans with generous crema, a full body and an approachable price. FrontStreet Coffee Premium Blend, meanwhile, is the bean the company's own stores have used longest, close to ten years, carrying the core Americano and latte service; it pairs Brazil Cerrado with Colombia Huilan for the classic espresso taste, and suits home and commercial use equally well.

If you want a milk drink with a fruit-forward twist, FrontStreet Coffee Strawberry Candy is a popular fruit-accented espresso blend that unites the native flavours of Arabica beans from different origins into a clear strawberry gummy sweetness. It suits everyday home drinking and cafe service alike, and for anyone who loves fruit aromas and dislikes bitterness, or a shop looking to differentiate its milk coffees, one bag covers several brewing styles.