After the Kopi Luwak acquisition: coffee accompanies you in debt of more than 1 billion, cat shit turns to the zoo

Give up the cup of coffee to accompany you

In early November, Shamian Island, on the banks of the Pearl River.

This small island, which was once leased by Britain and France, is worthy of the reputation of Guangzhou as "Xanadu".

No. 1 Shamian Street on the island is the headquarters office of Kopi Luwak.

In the office, Kopi Luwak CEO Mr. Xu Jiachen solemnly told sir: Kopi Luwak has officially decided to give up the cup of coffee to accompany you. In June this year, when coffee accompanied you into a stalemate with a broken capital chain, coffee accompanied you to send a Wechat message to your partner:

"after many days of efforts by CEO Qi Dong, we have finally achieved the strategic cooperation between Kopi Luwak and Coffee to accompany you.

In this strategic merger and acquisition, Kopi Luwak, with a number of strategic investors, will join the coffee company to accompany you for more than a month of audit evaluation, which will help coffee accompany you to bear the recognized debt and reshape your brand image. "

The matter caused a heated discussion in the industry and the media, and then there was no more.

Xu Jiachen told sir that after an internal discussion after the asset evaluation of the coffee company, Kopi Luwak finally gave up the acquisition plan.

There are two main reasons:

First of all, the debt is more than 1 billion.

"I thought you would have a lot of debt with coffee, but I didn't expect it to be so much."

Kopi Luwak told sir that the audit estimated the figure to be more than 1 billion. This far exceeded Kopi Luwak's expectations.

Second, it is difficult to reverse the damage to the brand.

High debt makes coffee accompany you with problems in the supply of raw materials. Due to the lack of supply of goods, pure join stores can only rely on their own research and development products, their own business. Many franchisees said, "the heart of the franchisee is very cold."

As a chain brand, consumers may see completely different product lines in An and B stores. There are even rumors in the industry that "Xi'an coffee will accompany you to sell Pita Bread Soaked in Lamb Soup". Xu Jiachen believes that this is an irreparable blow to a chain brand. At present, cat shit has only bought coffee to accompany you to eight stores, which will be operated by Kopi Luwak. In the future, some stores will be acquired sporadically as needed, but it will no longer be considered from the company level as a whole.

Aim for ZOO COFFEE

Mr. Xu Jiachen told sir that Kopi Luwak is now turning to buying ZOO COFFEE, another well-known Korean coffee chain. ZOO COFFEE and coffee accompany you in the business model, but the brand is on the rise.

According to Mr Ka, ZOO COFFEE was born in South Korea in 2009. It is interesting to note that ZOO COFFEE joined the business immediately after the first store opened, expanding to 100 stores in less than two years.

In 2013, zoo coffee opened a franchise store in China, and now there are more than 160 stores in China.

Not long ago, zoo coffee was closed for transfer on Zhengzhou Agricultural Road. Because it is a franchise store, its recharge card can not be used in other stores, resulting in no way for consumers holding recharge cards to complain.

Kopi Luwak said the acquisition was still in the planning stage and had not yet entered formal negotiations. ZOO COFFEE also told sir that he had not heard of the relevant news.

After the acquisition

Why is Kopi Luwak so interested in buying coffee chains?

Ka Sir believes that there are three answers: snatching the wind outlet, grabbing capital, and stabilizing the brand.

The tuyere is coming.

Many people in the industry have told sir that in the next 5-7 years, the coffee market will usher in a blowout period and will enter a golden era.

According to data from Boston Consulting, China is expected to become the world's largest consumer of coffee in 2020.