Luckin Coffee Opens Second Roasting Factory! Is Luckin's Coffee Consistently Good?

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With 7,846+ Stores, Luckin Coffee Needs a Larger Roasting Factory!

As Luckin's market scale expands, the brand has gradually recognized that specialty coffee focusing on unique flavors and exquisite scenes is not the only scenario for domestic coffee consumption, while the mass coffee market emphasizing cost-effectiveness and functionality may be even broader. Consequently, Luckin has begun to gradually penetrate more lower-tier cities in China, continuously launching coffee products that meet the public's demand for innovative flavors.

With the joint efforts of the marketing team behind it, viral products that break through the marketing circle have further driven the rapid increase in Luckin's sales, and the production at Luckin Coffee's roasting factory has begun to face "pressure." If relying solely on one roasting factory, as Luckin continues to expand outward in the future, production efficiency may not keep up.

Therefore, as early as last year, Luckin had plans to open a second coffee roasting factory. After on-site inspections in multiple cities, Luckin Coffee finally decided to establish a brand new coffee roasting factory in Kunshan City, Jiangsu Province. In May of this year, Luckin officially signed with Kunshan Development Zone.

After about half a year of process approval procedures and so on, just yesterday, Luckin Coffee (Jiangsu) Roasting Base officially broke ground in Kunshan. This base will be the second fully automated intelligent roasting base independently invested and constructed by Luckin Coffee following the commissioning of the Fujian Roasting Base, which will further help Luckin improve its upstream supply chain layout.

The person in charge of Luckin stated that after the construction and commissioning 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 in the next 1 to 3 years, Luckin will aim for global development, strengthen its brand strategy, develop a refined global supply chain, deepen technological innovation and talent and informatization strategies, and is committed to creating a world-class coffee brand from China.

For Luckin, the construction of the second roasting base can provide the market with fresher, safer, and pollution-free high-quality coffee bean raw materials. For Kunshan, Luckin's roasting factory will be another major coffee industry project in the city following the settlement of Starbucks' "China Coffee Innovation Industrial Park" project.

Starbucks' "China Coffee Innovation Industrial Park" was already a major project back in November 2020. According to reports, the project has a total investment of 1.1 billion yuan (156 million US dollars), covers an area of 80,000 square meters, and includes coffee bean import and export, roasting, packaging, storage, logistics distribution, and coffee roasting training. It is Starbucks' largest productive strategic investment outside the United States.

According to reports, Luckin Coffee had already obtained its business license earlier. Tianyancha shows that on May 27, 2022, Luckin Coffee Food (Jiangsu) Co., Ltd. has been established in Kunshan with a registered capital of 40 million US dollars. The legal representative is Xia Wei, and it is wholly owned by Luckin Coffee Roasting Factory (Hong Kong) Limited.

Public information shows that Luckin's first roasting factory is located in Pingnan, Fujian, with a total investment of 210 million yuan and covering an area of 45,000 square meters. It was jointly built by Luckin Coffee and Louis Dreyfus Company (LDC). The factory was officially commissioned on April 18, 2021, with an annual coffee bean roasting capacity of up to 15,000 tons.

The difference is that this new roasting factory located in Kunshan is independently invested by Luckin Coffee Company itself, with a total investment of 120 million US dollars (approximately 820 million yuan) and covering an area of 53,000 square meters. It is a full-industry-chain coffee roasting production base integrating green bean sorting, roasting production, warehousing and logistics, and comprehensive R&D. It will also introduce core equipment such as Italy's BRAMBATI roasting system and ICA coffee bean packaging machines, with an annual roasting production and processing capacity of coffee beans reaching 30,000 tons.

According to reports, Luckin Coffee (Jiangsu) Roasting Base is planned to be completed and officially put into production in 2024. At that time, the two major roasting bases of Luckin in Fujian and Jiangsu can form a self-processing roasting supply chain with an annual production capacity of over 45,000 tons, providing higher quality and fresher coffee to 7,846 stores nationwide.

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