Starbucks announces new roasting facility in China

Starbucks will invest approximately US$130 million in China to open a new roasting facility in 2022, as part of its new Coffee Innovation Park (CIP).

As Starbucks largest manufacturing investment outside of the United States and its first in Asia, the CIP will incorporate a roasting plant, warehouse, and distribution centre.

The plant will serve as a key component of the company’s global roasting network and deepens Starbucks’ commitment to the Chinese market, where it aims to have 6000 stores by 2022.

Currently, Starbucks operates six other roasting facilities, one in Amsterdam to support European markets, and five in the US. Starbucks says the warehouse, roasting, and distribution capabilities of the CIP will lay a strong foundation for continued business growth and development in China.

Building on Starbucks’ sustainability announcement in January, the CIP will incorporate advancements in sustainable manufacturing, smart supply chain innovation, and technology to support its aspiration to deliver the most energy- and water-efficient roasting operations for Starbucks in the world, while minimising waste.

The new roasting plant facility will be designed with the intent to apply for US Green Building Council LEED Platinum certification, as well as China’s Three Star Green Building standards.

From farm to cup, Starbucks says it has helped shape the coffee industry in China through continued investment in training and infrastructure, including the opening of the Starbucks Yunnan Farmer Support Center in 2012 to provide open-source agronomy resources to coffee farmers throughout the region.

The new CIP will source coffees from China and around the world directly from origin for processing, roasting, packaging, and distribution, for the first time in China.

Construction of the CIP will begin later this year in the city of Kunshan, an hour from Shanghai.

Starbucks has recently reopened most of its stores in China after temporary closures due to the coronavirus outbreak.

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