Master Kang joined Starbucks to grab 10 yuan of ready-to-drink coffee market

It is worth noting that Macquarie recently released a research report saying that the worst time for Master Kang is over, the market will revalue Master Kang, profits may bottom out in the second quarter of 2016, and profits are expected to recover gradually. Its profits for fiscal years 2016 and 2017 increased by 6.7% and 7.1%, respectively.

Macquarie also mentioned that the weather from July to August this year was hotter than last year, stimulating demand for drinks, especially in late August. Macquarie believes that this will help clear inventory and stimulate sales in 2017. At the same time, Hong Shifu's beverage business is strong, and the loss caused by low production capacity in the third quarter can be reduced. Macquarie believes that more than 30 per cent of capacity has bottomed out. Macquarie expects sales of Kang Shifu drinks to rise by 2% and 7% respectively in the third and fourth quarters of this year, while the net interest rate on drinks will increase from 0.6% this year to 2.3% next year and to 3.1% the year after next. Zhitong Finance learned that the cooperation between Starbucks and Hong Shifu began in March last year, when the two companies signed a cooperation agreement to produce Chinese mainland ready-to-drink drinks and expand distribution channels in the local market. At present, it can be seen that the production place in the newly launched bottled "Star Frappuccino" has changed from the United States to China.

In addition, another listed company in Hong Kong, Uni-President, previously vigorously promoted Yaha coffee with the help of the online hit program "Qifa Shuo" and priced it at 5 yuan to more than 10 yuan, while Master Kang's coffee cooperation with Starbucks was targeted at 10 yuan.

Some market analysts believe that China's coffee market accounts for less than 2% of the beverage industry, and there is still plenty of room for market competition. China's market for ready-to-drink coffee and energy drinks is currently $6 billion and is set to grow by a further 20 per cent over the next three years.

From 2009 to 2013, the compound growth rate of ready-to-drink coffee in China reached 34.2%, according to a survey conducted by Canardia in the UK. China Industry Research Network believes that high-quality coffee will be the mainstream of consumption in China in the future.

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