Starbucks Partners with Yunnan Coffee Company

When global coffee giant Starbucks wanted to expand its presence in China’s coffee supply chain, it didn’t look to imports — it partnered locally. The story begins not in Seattle, but deep in China’s Yunnan Province, where a little-known domestic coffee company caught the attention of Howard Schultz himself.

In 2012, Starbucks and Yunnan’s Ainil Group officially formed a joint venture, backed by a 2010 meeting between Schultz and the group’s leadership, followed by a formal deal signed in Kunming. This marked a strategic move to develop Yunnan’s coffee industry with international expertise.

The Birth of a Strategic Coffee Alliance

The collaboration between Starbucks and Ainil Group was rooted in Yunnan’s growing reputation as a serious coffee region. Though based in the U.S., Starbucks saw potential in Yunnan’s unique terroir and existing infrastructure. The joint venture aimed to strengthen both companies’ positions while elevating Yunnan-grown coffee on the global stage.

The partnership was more than symbolic. Ainil Group committed to investing ¥1 billion during China’s 12th Five-Year Plan period (2011–2015) to build facilities for coffee processing and equipment. This included plans for producing 3,000 tonnes of roasted beans, 5,000 tonnes of roasted coffee powder, and 20,000 tonnes of canned coffee annually by 2015. The projected output value? Over ¥5 billion.

What Makes Yunnan Coffee Stand Out?

Yunnan’s coffee industry has seen explosive growth. In just four years, planted area surged from 300,000 mu (about 20,000 hectares) to 860,000 mu (57,000+ hectares). The region’s high altitudes, volcanic soils, and distinct microclimates produce coffees with remarkable clarity and sweetness — traits increasingly recognised by international cuppers.

Puer City, where much of this coffee is grown, aims to expand its coffee acreage to 1 million mu (66,667 hectares) over the next 5–10 years, positioning itself as the “Coffee Capital of China.” The city government and private companies alike see huge potential in building a complete coffee culture and export economy.

The Praise for Mandhuyuan Coffee

At a media event, Jeremy Wakeford, Starbucks’ chief coffee taster with 45 years of experience, tasted a lot from Yunnan — and one stood out. He awarded a coffee from Mandhuyuan Farm an impressive 81.5 points. “If you put Mandhuyuan coffee in an oak barrel, no one could tell it apart from Jamaican Blue Mountain,” he said. “It’s one of the finest coffees I’ve ever tasted.”

Mandhuyuan Farm, located in Puer at around 1,500 metres above sea level, benefits from shaded, humid conditions ideal for slow coffee maturation. The farm experiments with “rainforest coffee” techniques and uses organic fertiliser from Ainil’s 30,000-mu (20,000-hectare) year-round green pasture. Liu Minghui, chairman of Ainil Group, calls the quality there “accidental inevitability, inevitable accident.”

Why This Partnership Matters for Coffee Globally

This collaboration signals a shift in how global coffee companies engage with origin countries. Rather than simply sourcing beans, Starbucks invested in Yunnan’s production capacity and expertise. The joint venture blended Starbucks' global roasting and brewing knowledge with Ainil’s on-the-ground farming and processing capabilities.

It also helped catalyse broader industry development. The planned processing facilities were set to raise the bar for Yunnan’s coffee value chain, moving beyond raw exports to include roasted coffee, soluble products, and refined exports. The aim: to establish Yunnan as a globally recognised origin for specialty-grade beans.

Frequently Asked Questions

When did Starbucks and Ainil Group form their coffee joint venture?

The official partnership agreement was signed in Kunming on February 6, 2012, following discussions that began with Howard Schultz’s visit to Ainil Group in November 2010. The companies had already been collaborating for years prior to the formal deal.

How much did Ainil Group invest in Yunnan coffee development?

Ainil Group pledged to invest ¥1 billion during China’s 12th Five-Year Plan (2011–2015) to build facilities for coffee processing, roasting, and equipment manufacturing, aiming to improve Yunnan’s coffee value chain.

What production targets did the joint venture aim for by 2015?

The planned facilities were expected to produce 3,000 tonnes of roasted coffee beans, 5,000 tonnes of roasted coffee powder, and 20,000 tonnes of canned coffee per year, with a projected total output value exceeding ¥5 billion.

Which Yunnan coffee farm received high praise from Starbucks’ cupper?

Mandhuyuan Farm, located in Puer at around 1,500m altitude, earned an 81.5 score from Starbucks’ chief taster Jeremy Wakeford, who compared its quality to Jamaican Blue Mountain when aged properly.

What is the Yunnan government’s coffee expansion plan?

Puer City aims to expand coffee cultivation to 1 million mu (66,667 hectares) over the next 5–10 years, with the goal of becoming China’s leading coffee production and cultural hub.

What makes Mandhuyuan coffee special according to the article?

Mandhuyuan coffee grows in shaded, humid high-altitude conditions, uses organic fertiliser from nearby pastures, and is cultivated using experimental “rainforest coffee” methods — all contributing to its complex, high-scoring profile.

Recommended FrontStreet Beans from Yunnan

Explore Yunnan’s coffee heritage with FrontStreet Coffee’s Yunnan Arabica, a washed-process single origin with soft nutty and chocolate tones, balanced acidity, and a gentle price point—perfect for tasting the region’s signature style. For something more classic, try the 2013 Typica, a sun-dried lot with deep berry, caramel, and dried apricot notes, offering a cleaner, more vintage Yunnan cup. Both beans highlight the terroir that earned international praise, including from Starbucks’ own cuppers. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.