Chinese coffee chain Luckin Coffee has signed a Memorandum of Understanding (MoU) with the Brazilian Trade and Investment Promotion Agency to procure a total of 240,000 tons of Brazilian coffee beans valued at an estimated US$1.4 billion.
According to the agreement, Luckin Coffee will expand its initial June 2024 deal to purchase 120,000 tons of Brazilian coffee beans over two years by an additional 120,000 tons. This is said to mark the largest coffee bean procurement plan in the chain’s history.
“Fifty years ago, China and Brazil ushered in a new era of collaboration through the symbolic exchange of coffee for alcohol,” says Guo Jinyi, Co-Founder, Chairman, and CEO of Luckin Coffee.
“Today, coffee stands as a symbol of our enduring friendship and offers immense opportunities for industrial collaboration. As China and Brazil embark on the next ‘Golden 50 Years’ of their relationship, Luckin Coffee aims to bridge the gap between the two countries’ coffee industries. We aspire to elevate high-quality, flavourful Brazilian coffee to global recognition, spreading its aroma and reputation worldwide.”
As China’s largest coffee chain, Luckin Coffee has emerged as a major importer of Brazilian coffee beans in the Chinese market in recent years, deepening its economic and cultural ties with Brazilian partners.
In addition to signing the MoU, Luckin Coffee has established several key initiatives in Brazil, including the Luckin Brazil Office, the Luckin Brazil Grower Support Center, and Luckin Coffee High-Quality Coffee Plantation.
According to Luckin Coffee, these strategic moves will further enhance its quality control capabilities at the upstream end of the supply chain, and support its efforts to explore and implement sustainable coffee certification standards, laying a solid foundation for the continued development of its global high-quality supply chain.
