Starbucks has opened its China Coffee Innovation Park (CIP), fulfilling its scaled vertical integration ‘from bean-to-cup’ across one market in a first for the company.
“As one of the largest consumer markets in the world, China presents tremendous opportunities for Starbucks,” says Starbucks CEO Laxman Narasimhan. “The Coffee Innovation Park highlights Starbucks foresight in elevating the supply chain through digitalisation and advancing our sustainability agenda, enhancing our unique competitive advantage as we accelerate our global growth.”
Located in Kunshan, Shanghai the CIP is designed to be Starbucks’ most energy efficient and sustainable coffee manufacturing and distribution centre in the world.
“I couldn’t be prouder of the China team’s visionary thinking,” says Narasimhan. “As Starbucks largest and fastest-growing international market, we will continue to deepen our investment and reinforce our unwavering long-term commitment to the China market.”
Since the CIP’s initial announcement in March 2020, Starbucks has made two additional rounds of investments, making it the largest investment in any Starbucks coffee manufacturing and distribution centre outside the United States at ~US$220 million.
“The Coffee Innovation Park holds important significance for Starbucks in China and globally,” says Starbucks China Chairwoman and CEO Belinda Wong. “It not only showcases Starbucks unrivalled coffee leadership, fulfilling our scaled vertical integration in China ‘from bean-to-cup’, but also sets a new benchmark for sustainability in China’s coffee industry.”
The 80,000 square metre facility features a roasting plant deploying Starbucks most energy efficient technology, an integrated distribution centre (IDC), and an immersive experience centre.
“Its immersive experience centre further elevates China’s specialty coffee industry with a multi-sensory showcase of the coffee journey,” says Wong. “The CIP is yet another testament that Starbucks purpose and commitment to China go far beyond a cup of coffee.”
The CIP imports high quality Arabica green beans for roasting, packaging, storage, and distribution, while showcasing the ‘bean-to-cup’ coffee journey to visitors and providing coffee related training in the one location.