Starbucks joined hands with Yunnan Government to promote the Development of Coffee Industry

Kunming, China-as one of China's major business partners, Starbucks Coffee Company today signed a memorandum of understanding (MOU) with the Yunnan Academy of Agricultural Sciences (Yunnan Academy of Agricultural Sciences) and the people's Government of Pu'er City, Yunnan Province, aimed at promoting the development of Yunnan coffee industry. Mr. Kong Chuizhu, Vice Governor of Yunnan Province, and Mr. Howard Schultz, Chairman, President and CEO of Starbucks Coffee Company, attended and witnessed the signing ceremony of the memorandum. According to the memorandum, Starbucks will work with the Yunnan Academy of Agricultural Sciences and the Pu'er municipal government to seek to develop more environmentally friendly ways to grow better quality coffee beans that suit Yunnan's local environment. To implement this cooperation, Starbucks plans to invest in and operate its world's first coffee planting base in Yunnan, as well as a coffee research and development center, a coffee grower support center and a coffee processing plant. This cooperation will help Starbucks integrate and improve the value chain of the Chinese market and strengthen its leading position in the Chinese coffee industry.

Starbucks is proud and excited to cooperate with the Yunnan provincial government. We will share Starbucks' knowledge on coffee to promote Yunnan to continue to develop into a high-quality coffee growing area, and to bring Yunnan coffee with unique flavor to our customers around the world, "said Mr. Howard Schultz." Starbucks' investment in this coffee producing area will further strengthen our commitment to make the Chinese market a 'second home market' outside the United States. "

As part of the partnership, Starbucks will set up its first coffee growing base in the world. The planting base and the initial processing plant to be set up in Yunnan will further consolidate Starbucks' solid foundation for sustainable development in China. In addition, Starbucks will set up its first coffee grower support center in Asia in Yunnan. The center is Starbucks' third grower support center in the world after Costa Rica and Rwanda. Starbucks agronomists and quality experts will work directly with coffee growers in Yunnan to provide them with various resources and technical support to develop and use more environmentally friendly planting methods to improve the quality of coffee beans. increase the output of high-quality coffee beans. Starbucks experts will also conduct research on new varieties of coffee beans suitable for local cultivation, crop disease resistance and improving flavor.

It is reported that the Yunnan provincial government plans to invest 3 billion yuan to increase coffee bean production from 38, 000 tons to 200000 tons by 2020. At the same time, the scale of coffee cultivation will increase from 26,700 hectares to 100000 hectares.

With its leading position in the global coffee industry, Starbucks will share its globally recognized coffee knowledge and best practices with Yunnan to help Yunnan become a high-quality coffee growing area in Asia. With the support of the Yunnan provincial government, Starbucks will also promote the Coffee grower Fair Regulation (C.A.F.E. Practices) in Yunnan. This specification has benefited growers in major coffee growing areas around the world, improving growers' coffee quality assessment scores, helping to increase yields by 25 per cent per hectare and reducing planting costs by an average of more than $200 per hectare.

"our efforts in Yunnan, as well as the support of the Yunnan Academy of Agricultural Sciences and the Pu'er Municipal Government, have strengthened Starbucks' continued commitment to operating its business in a responsible manner and to creating a better future for coffee growers, communities and the environment." Mr. Wang Jinlong, senior vice president of Starbucks Coffee Company and chairman of Starbucks Greater China, said. "with this commitment, we focus on three core areas where Starbucks can have a profound impact: ethical procurement, environmental commitment and giving back to the community."

Since Starbucks purchased coffee from Yunnan in 2007, the company's coffee purchases in Yunnan have increased about 20 times. Fengwu Xiangyun, launched by Starbucks in 2009? Integrated Coffee is the first milestone in Starbucks' cooperation with coffee growers and suppliers in Yunnan Province. This coffee is the result of the joint efforts of Starbucks and coffee growers, suppliers and local governments in Yunnan Province. It is Starbucks' first comprehensive coffee blended with high-quality Chinese Arabica beans. With the deepening of cooperation with Yunnan Province, the company expects that the purchase of coffee beans in Yunnan will increase significantly in the future.

Since opening its first Starbucks coffee shop at the China International Trade Center in Beijing on January 11, 1999, Chinese mainland has welcomed customers from all over the world at more than 400 stores in 31 cities. At present, Starbucks has nearly 800 stores in Greater China. Starbucks has won the popularity of Chinese consumers, and for many Chinese, the Starbucks green mermaid logo means much more than the highest quality coffee. It symbolizes not only the rapid development of Chinese cities, but also the modern way of life and positive and optimistic attitude towards life. Starbucks' pure coffee culture and unique Starbucks experience have resonated with Chinese consumers in various industries eager for a better life.