Canadian Maple Leaf Coffee Tencent invests in Tim Hortons China plans to list tim several in China

These days, there is a lot of news about Tim Hortons China (hereinafter referred to as: Tims China) on the Internet, because it plans to go public! A meal is as fierce as a tiger! This is really awesome!

As we all know, Tim Hortons is a well-known coffee chain brand in Canada. In February 2019, Tims China officially entered the Chinese market and opened its first store in Shanghai. In May 2020, Tims China won the exclusive investment of Tencent, while in August 2021, Tims China announced that it would be listed in the United States in the form of SPAC.

According to several media reports, Tims China will merge with Silver Crest Acquisition Corp, a special purpose acquisition company, before listing on Nasdaq, which is still subject to regulatory approval.

Tims's China operations are valued at about $1.69 billion (10.933 billion yuan), and the deal is expected to close in the fourth quarter of this year, according to exchange regulatory filings.

In response, Peter Yu, chairman of Tims China, said: Tims China wants to build "second to none" coffee shops and bakeries in China and build a profitable chain network of more than 2750 stores by 2026.

By implication, Tims China will significantly increase the number of stores in the next five years, opening more than 2750 stores.

When he entered the Chinese coffee market as early as 2019, Tims China CEO Lu Yongchen had ambitions to open 1500 cafes across the country in the next 10 years.

According to documents disclosed by Silver Crest, as of 2020, Tim Hortons China had 137 stores in mainland China. At present, there are more than 4800 Tim Hortons stores worldwide, 80% of which are in Canada.

On October 15, 2020, Tim Hortons said that China had welcomed its 100th store.

On June 17 this year, Tim Hortons announced again that the number of Tim Hortons stores in China had reached 200. (more details can be found in this article: Tim Hortons's 200th store is here.)

By the end of 2021, Tims Coffee will double the number of stores, that is, 200 more stores, and is expected to exceed 388 stores this year, reflecting the rapid expansion of Tims Coffee in China.

In addition, we also mentioned at the beginning of the article that the news of Tims's listing in China has attracted a lot of attention, as the online media reported: part of the reason why Tims Coffee has attracted so much attention is related to the delisted Luckin Coffee.

In the previous lucky caffeine financial scandal and had to close some unprofitable coffee shops, Tims Coffee is extremely high-profile announcement of "accelerated store opening", so it is seen by the industry as "intended to replace Luckin Coffee."

However, with regard to the news that Tims China is preparing to be listed in the United States, some media "late Caijing" pointed out that the valuation of Tims China is temporarily less than half that of Lucky (the market capitalization is more than 3.67 billion US dollars, which is about twice the valuation of Tim Hortons China). And from the current management level of Luckin Coffee, Luckin Coffee is no longer the Luckin Coffee who used to burn money crazily, not long ago. Luckin Coffee also entered the Weibo hot search list because he made an overall profit in May and June this year.

Of course, although Luckin Coffee has regrouped and gradually extricated himself from the scandal, but! The object of capital concern is not all the Internet coffee represented by Lucky.

Capital is concerned with the boutique coffee track of the whole of China.

With the birth of an endless stream of new coffee brands, the coffee track is naturally becoming more and more popular.

Capitalists are also interested in this hot coffee track, so crazy financing, such as "M Stand", "MANNER", "time extract SECRE", "Sumida Kawakawa Coffee" and so on are one of the objects that capitalists have made great efforts to increase, and even the emergence of "M Stand" valuation of 4 billion, "MANNER" completed four rounds of financing in six months and Sequoia, Hillhouse, Meituan, bytes, Ali, Tencent and other wantonly participate in the lively situation of the coffee track.

With the help of capital, it is obvious that the coffee market has been added to the volume.

Tim Hortons China, which has only been in the Chinese market for two years, is also ready to go public. If Tim Hortons China goes public in the United States as scheduled, it will undoubtedly get more abundant capital support and rise rapidly in the Chinese market. To put it bluntly, this also means further intensifying the competition in the Chinese coffee market.

Of course, as industry insiders have pointed out: it is not easy to expand "wantonly" in the Chinese market. After all, there are Starbucks in front, Luckin Coffee in the middle, and an endless stream of new coffee brands behind. Tim Hortons China may need to make more efforts to gain recognition in the coffee market, but in the end, we will wait and see how Tim Hortons China ends.

Last.

Whether it is the capital-blessed coffee track or the continuous expansion of the coffee market among major brands, it is worth paying attention to: whether listed or not, for market consumers, it is only "a good cup of coffee" that is willing to pay for it in the end. Therefore, the brand that can provide consumers with "a cup of good coffee" may be the No.1 in the eyes of consumers in the coffee market.

* Image source: Internet

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