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

Everyone has witnessed Luckin Coffee's successful recovery and rapid development in recent years. It must be said that Luckin's marketing team has demonstrated remarkable vision, not only capturing consumers' demand for innovative flavors with their launch of the Coconut Latte, which ignited the entire beverage industry, but also deeply embedding the Luckin brand in consumers' minds.

Beyond flavor innovation, Luckin has also ventured into researching specialty coffee SOE (Single Origin Espresso) series, which has not only introduced more consumers to the concept of "specialty coffee" but also enhanced general consumers' recognition of the Luckin Coffee brand.

With continuously rapid sales growth and increased consumer trust, Luckin Coffee's roasting factory production capacity began facing "pressure." If relying solely on the roasting factory located in Pingnan, Fujian, production efficiency might struggle to keep up as Luckin continues to expand outward.

Therefore, starting last year, Luckin began secretly planning a new location to establish a second coffee roasting factory. After a year of on-site inspections in multiple cities, Luckin decided to establish a new coffee roasting factory 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 this development zone, integrating coffee research and development, roasting production, and sales centers. The relevant person in charge stated that once this roasting factory is officially put into operation, the 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, legal representative Xia Wei, and business scope including food sales; import and export of goods; domestic trade agency, etc. Shareholder information shows that the company is wholly owned by Luckin Coffee Roasting Factory (Hong Kong) Co., Ltd.

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

The person in charge of Luckin Coffee Food (Jiangsu) Co., Ltd. stated that after the construction and operation of the new roasting factory, it will provide the domestic market with more freshly roasted, safe, and pollution-free high-quality coffee bean raw materials. It is expected that within the next 1 to 3 years, Luckin will aim for global development, strengthen its brand strategy, develop refined global supply chains, deepen technological innovation and talent/information technology strategies, and commit to creating 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. This factory was officially put into operation on April 18, 2021, with an annual coffee bean roasting capacity of 15,000 tons.

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

Image source: Internet

For professional coffee knowledge exchange and more coffee bean information, please follow Coffee Workshop (WeChat public account: cafe_style)

For more specialty coffee beans, please add private WeChat FrontStreet Coffee, WeChat ID: qjcoffeex

Important Notice :

前街咖啡 FrontStreet Coffee has moved to new addredd:

FrontStreet Coffee Address: 315,Donghua East Road,GuangZhou

Tel:020 38364473