Starbucks Coffee and Love Bean "Marriage" strengthens the territory of Yunnan Coffee Bean Base

Photo taken by Chen Chuang of Yunnan coffee beans covered with branches

Yesterday, coffee giant Starbucks Coffee Company announced that it had signed a joint venture with Yunnan Aiyi Group to once again strengthen its coffee bean base in Yunnan.

The newly formed joint venture, led by Starbucks, will buy and export high-quality Arabica coffee beans from Yunnan, and set up a coffee bean primary processing plant with "optimal processing technology" to ensure the same quality of Starbucks raw materials. From the acquisition of raw materials in Yunnan, to the establishment of the world's first coffee bean planting base, to the establishment of a joint venture with Yunnan enterprises, Starbucks' coffee bean business in Yunnan has been continuously "ploughed". It shows that the global coffee giant attaches great importance to Yunnan base.

Starbucks establishes a complete market value chain in China

"the establishment of a joint venture between Starbucks and Aiyi Group is another important milestone in our long-term contribution to the development of Yunnan coffee industry." "We are committed to helping Yunnan farmers improve the quality of their local coffee and bring Yunnan's best coffee beans to China and other markets around the world," said John Culver, president of Starbucks Coffee in China and Asia Pacific. According to reports, with the establishment of the joint venture, Starbucks will increase the total amount of coffee beans purchased in Yunnan for the comprehensive coffee products it sells around the world, and establish a long-term cooperative relationship with coffee bean growers in Yunnan.

In addition to the joint venture with Aiyang Group, Starbucks' Coffee grower support Center in Pu'er will also be put into operation this year, which will provide agronomic technology advice and support to coffee growers in Yunnan Province. In addition, the cooperation project between Starbucks and the Tropical and Subtropical Economic crop Research Institute of Yunnan Academy of Agricultural Sciences (Yunnan Academy of Agricultural Sciences), that is, the seed introduction of new varieties of coffee beans and their local adaptability experiments are being carried out in an orderly way.

Starbucks' goal is to establish a complete market value chain in China, from coffee cultivation to consumer stores. The famous label at the beginning of its business in Yunnan is: in 2009, it launched Fengwu Xiangyun Integrated Coffee, a product in partnership with Yunnan curry farmers and suppliers. Starbucks blended high-quality Arabica coffee beans in China for the first time and is now sold in Starbucks stores in Asia and the United States.

Love to marry a "dark horse" with a giant to expand local brands

In the eyes of ordinary coffee lovers, the protagonist of the marriage with Starbucks-Aiji Group is not widely known, but according to insiders, Aiyi Group is a fast-growing "dark horse" in Yunnan coffee industry, ranking among the top three in terms of scale and production capacity of Yunnan enterprises. he was previously a master of the coffee trade. Aiyi Group coffee beans trade access to the United States, Canada and other North American markets, it has a number of coffee bean processing plants, two coffee farms with a total area of 500 hectares. Between 2009 and 2010, Aiyi Group purchased and processed about 6900 tons of coffee beans from more than 4600 coffee farmers.

On January 16 this year, the intensive and deep processing production line of Aichang Coffee was officially put into production in Pu'er City, introducing advanced equipment and technology from Germany, and designed to produce 3000 tons of roasted coffee beans per year, with an output value of 1.2 billion yuan, which is fully prepared for the "handshake" with Starbucks.

At yesterday's signing ceremony, Liu Minghui, the dark-faced founder and chairman of Aixing Group, said that the "marriage" of Aiyi Group and Starbucks means the realization of his company's dream of cooperation with the Fortune 500. The newly formed joint venture will help to turn Yunnan into a globally recognized high-quality coffee growing area. An industry insider at the scene joked with the reporter that despite the fact that Liu Minghui's Putonghua is not a special standard, he speaks English better than an on-the-spot interpreter. The Yunnan legend in the field of international trade said loudly: in the future, let the whole world know Yunnan's coffee beans.

It is reported that the brand building of the self-created brand of Aiyi Group has been put on the agenda.

Local enterprises in the industry should be prepared to meet the challenge

As for the cooperation between Starbucks and Aixin Group, industry insiders believe that, on the one hand, it will improve the initial processing level of Yunnan coffee and speed up the pace of Yunnan small-grain coffee entering the international market. At the same time, it also explores a new model for the growth of Yunnan coffee enterprises. But on the other hand, it also means that the international giants have gone deep into the local processing from the original purchase of raw materials in Yunnan's local market, and Yunnan local coffee enterprises will face competition from international brands.

Hu Lu, deputy secretary general of the Yunnan Coffee Industry Association, believes that Yunnan coffee beans have been supplied to foreign multinational corporations in the form of raw materials for many years, and have been playing the role of selling primary raw material products, while enterprises are in a small, scattered and chaotic state. Yunnan's coffee industry bid farewell to the primary stage of the past, opening up is an effective booster. With the help of external forces, borrowing Starbucks' brand, management and quality evaluation criteria of coffee beans will help to make Yunnan coffee really go to the world and effectively promote the upgrading of Yunnan coffee industry.

"We are growing organic coffee, and now we have developed fertilizers. If we can pass the organic certification of the European Union, then the way to enter the international market will be opened." Duan Shaoshan, chairman of Baoshan Shian Coffee Company, is looking forward to introducing partners to the outside world. He believes that the main constraint for companies at present is capital, and if funds are injected through partners, it will speed up the cultivation of organic coffee.

"the cooperation between Starbucks and Aixin is a good thing, which can not only improve the initial processing quality of Yunnan small-grain coffee, but also promote the improvement of processing technology of Yunnan coffee enterprises." Xu Zhengxiong, executive vice president of the Baoshan Coffee Chamber of Commerce, made a U-turn, but this also shows that the tentacles of international giants have gone deep into the field of coffee processing, which may be a preliminary work for the next step of integration and mergers and acquisitions. "I hope that Yunnan coffee enterprises can speed up their development, enhance their competitiveness, and develop into international enterprises in the competition with international brands."

In the past year or two, international coffee prices have gone up all the way. So far, coffee giants in Europe, America and Asia are all optimistic about Yunnan coffee raw materials and have come to Yunnan for coffee cultivation and acquisition. As for Starbucks'"overloading" of its Yunnan base, industry insiders have also speculated about the trend of Nestle, another international giant that has bought raw materials in Yunnan for many years. An industry insider believes that Nestl é has been in the Yunnan market for many years and is deeply rooted. Last year, coffee beans accounted for at least 1x5 of Yunnan's total output, and unlike Starbucks stores selling drinks, Nestl é uses large shopping malls and supermarkets as access roads. (end) (Duan Yi Zhang Min)