Starbucks Coffee Innovation Park in China Elevates Manufacturing and Extends Global Roasting Network
New roasting facility in 2022 will be Starbucks largest manufacturing facility outside the U.S.
Investment of $130 million (USD) further deepens Starbucks long-held commitment to elevate specialty coffee in China
Starbucks China Coffee Innovation Park (CIP) will advance sustainable manufacturing and smart supply chain management
Starbucks Coffee Company, the global roaster and retailer of specialty coffee, announced today it will invest approximately $130 million (USD) in China to open a state-of-the-art roasting facility in 2022 as part of its new Coffee Innovation Park (CIP). As Starbucks largest manufacturing investment outside of the U.S. and its first in Asia, the CIP will incorporate a roasting plant, warehouse and distribution center, creating highly-skilled jobs and new career opportunities that will further drive smart and sustainable coffee manufacturing in China. The plant will serve as a key component of the Company’s global roasting network, and the bold infrastructure investment further deepens Starbucks multi-decade commitment to strengthen the specialty coffee industry in China, where it aims to have 6,000 stores by 2022.
“Starbucks has spent the past 20 years sharing its passion for coffee across China and helping to build a leading industry that makes us all proud. The roasting facilities at the Coffee Innovation Park will set a blueprint for the future of coffee roasting and supply chain management, and further elevate China’s coffee industry, while supporting Starbucks growth in China, with China,” said Belinda Wong, chairman and chief executive officer, Starbucks China. “Starbucks has always taken a long-term view in China, and our commitment to the market has never been stronger.”
Building on Starbucks sustainability announcement in January, the CIP will incorporate advancements in sustainable manufacturing, smart supply chain innovation, and technology to support the aspiration to deliver the most energy- and water-efficient roasting operations for Starbucks in the world, while minimizing waste. The new roasting plant facility will be designed with the intent to apply for U.S. Green Building Council LEED Platinum certification, as well as China’s Three Star Green Building standards.
“We recently announced a bold multi-decade aspiration to become a planet positive company. A company that gives more than we take from the planet. China is one of our most important markets and The Coffee Innovation Park is an important, strategic investment that has a positive impact on our carbon footprint and supports our long term sustainability goals,” said Kevin Johnson, president and chief executive officer, Starbucks.
Elevating Premium Coffee in China
From farm to cup, Starbucks has helped shape the specialty 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, wholly-owned and operated by Starbucks, 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.
“As the undisputed leader in specialty coffee, Starbucks is renowned for its tremendous contributions in developing China’s specialty coffee industry over the past two decades,” said Mr. Wu Xinming, Party Secretary of Kunshan. “We are delighted to welcome Starbucks reputed coffee expertise to help build a best-in-class coffee supply chain in Kunshan, which offers an ideal environment for Starbucks to invest and elevate its coffee leadership in China.”
Smart and Sustainable Manufacturing
With the CIP set to handle Starbucks largest roasting capacity outside the U.S., the investment highlights the Company’s ambition to further globalize its roasting network and reinforces Starbucks strategic focus on the U.S. and China as its two lead growth markets. Currently, Starbucks operates six other roasting facilities—one in Amsterdam to support European markets, and five in the U.S. The warehouse, roasting and distribution capabilities of the CIP will lay a strong foundation for continued business growth and development in China.
However, Starbucks vision extends far beyond roasting. Once in operation, the CIP will integrate green coffee bean warehouse management and processing, with plans to co-locate a highly-automated and ‘intelligent’ distribution center that will become the heart of Starbucks distribution network in China. The facility also will serve as a training ground for coffee roasters and key roles across Starbucks coffee supply chain in China.