Aim for the coffee market in China! Nestle officially launches Starbucks packaged coffee to the mainland of China

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Nestl é, the world's largest food company, announced on the 8th that it will launch a new series of "Starbucks Home Coffee" products for Chinese consumers, as well as the overall coffee solution of "Starbucks Coffee Service" for out-of-store drinking scenes. Nestl é said it would start selling 21 Starbucks-branded capsules and instant coffee products on Alibaba's e-commerce platforms such as Tmall and JD.com, as well as offices and hotels in China's first-tier cities.

Coffee consumption is mainly divided into two scenarios, including household consumption (such as supermarkets, offices, etc.) and coffee shop consumption. The bagged coffee sold by Starbucks and Nestl é belongs to the household consumption scene, which is sold through the offline channels accumulated by Nestl é. The product range of the two sides includes 21 "Starbucks Home Coffee" products, such as roasted coffee beans, ground coffee powder and the first Starbucks coffee capsule developed for Nespresso and Nestle coffee machines.

In May last year, Nestl é and Starbucks announced the formation of a global coffee alliance. Nestl é will pay Starbucks $7.15 billion for marketing rights to Starbucks consumer and food service products, including packaged coffee and beverages sold in supermarkets. But it does not involve Starbucks' 28000 coffee shops around the world.

This is the first new move in the Chinese market after the two companies reached capital cooperation and established a global coffee alliance, and it is also the first time that Starbucks coffee products have officially entered the home scene and out-of-store channels. China is the second largest market in the world for both Nestl é and Starbucks, and there is a lot of room for imagination between the two companies.

Nestl é Greater China CEO Rashid Aleem Qureshi said, "We think China is the most exciting market, especially for coffee, because the per capita coffee consumption here is quite low compared with the rest of Asia. At present, China's instant coffee market (including capsules and instant coffee) is growing at an annual rate of between 3% and 5%. It is believed that Nestl é should be able to grow faster by bringing this exciting new business opportunity. "

Nestl é says China consumes about six cups of coffee a year, compared with 400 cups in Japan and 300 cups in South Korea.

In the Chinese market, Starbucks is also trying to expand more consumption scenarios outside its coffee stores. In addition to the fact that Starbucks has nearly 4000 stores in China, whether it is portable ready-to-drink coffee or capsule coffee or coffee delivery service that people can drink at home or office, it is an opportunity for Starbucks in China.

Wang Jingying, chief executive of Starbucks China, said the deal with Nestl é would open up two new ways to sell its products in China, amid increased competition from local start-ups. Starbucks has been investing heavily in its store network and distribution. "in the Chinese market, in addition to the store 'third space' that we have been talking about, we are also expanding the 'fourth space'. That is, digital experience (digital engagement), including special star delivery service for takeout, fast order service for mobile phone, and so on. "

At present, the "Starbucks Home Coffee" series has been launched on e-commerce platforms such as Tmall, JD.com and SUNING (all separate "Starbucks Home Coffee" accounts, pay attention when searching). Consumers can log in to the new "Tmall Starbucks Home Coffee flagship Store", "Starbucks Home Coffee JD.com flagship Store" and "Starbucks SUNING self-owned flagship Store". After that, the series of products will also enter the offline high-end supermarkets one after another.

Price, for example, a box of 12 Dolce Gusto capsules, the price between 50 yuan and 61 yuan, calculated that each capsule 4 yuan, American coffee cup only one capsule, and even caramel macchiato these fancy coffee that requires two capsules, the price of a cup is less than 10 yuan. While Nespresso has 10 capsules in a box, the price is between 42 yuan and 50 yuan, and the price per cup is also less than 5 yuan, which is quite competitive. In addition, Tmall now has two 10% discount activities in these channels, and the price can be a little lower.

Photo source: Nestl é

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