McDonald’s challenges Starbucks’ for China coffee crown
November 23, 2020
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From asia.nikkei.com Fast food giant McDonald’s will spend 2.5 billion
There’s no compelling reason to get excited about this stock. The only real news out there is that Chinese regulatory authorities will impose a 61 million yuan penalty against the company after it admitted to fabricating revenue earlier this year.
Matrimony vine, longans, red jujubes… sounds like the ingredients for herbal tea. However, these will actually be made into coffee as part of a new product line from Tongrentang, China’s largest producer of traditional Chinese medicine, to catch up with latest health trends among young people.
As a coffee market, China exerts a magnetic pull for Western brands keen to emulate the success of Starbucks Corp which has over 4,400 stores in China and is still expanding. Since last year, Canada’s Tim Hortons has opened about 60 stores in China while Italy’s Lavazza and Sweden’s Wayne’s Coffee have also made forays into the market.
Starbucks is expanding its partnership with Alibaba by allowing its customers to order food and beverages through four of Alibaba’s flagship apps, the companies announced on Tuesday.
Investors in China’s Luckin Coffee (OTC:LKNC.Y) have had to deal with a lot of surprises this year. Revelations of fraudulent accounting practices led to a long suspension in trading of the shares on the Nasdaq exchange. Top executives were ousted from the coffee store chain’s C-suite. And finally, Luckin shareholders got what many had considered to be the final straw: notice that the stock would get delisted from the Nasdaq.
Judge Raj Parker will grant orders to liquidate two holdings ” Primus Investments Fund and Mayer Investments Fund ” which hold shares in Luckin and are ultimately controlled by the Lu family, according to the judgment delivered on June 16 in the Court of the Cayman Islands.
Last week Starbucks announced it would be closing up to 400 stores in the U-S and Canada over the next 18 months.
After graduating from college, Hu decided to go back to countryside to do research on coffee planting and enhance the development of Yunnan coffee. This video tells a story of how he helped the farmers grow coffee by using the e-commerce platform and leading the village to rise out of poverty.
In a letter from CEO Kevin Johnson, published late Monday, Starbucks said 85% of its company-owned stores would be ‘responsibly’ re-opened this week, with at least 90% opened by early June, albeit under ‘modified operations and hours’ that are likely to reflect social distancing guidelines. Johnson also noted that nearly all of its stores are back up-and-running in China, it’s second largest market.
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