Luckin Signs Memorandum with Brazilian Trade and Investment Promotion Agency

Consumer Staples Author: EqualOcean News Jun 06, 2024 06:20 PM (GMT+8)

EqualOcean has learned that on June 5, the China-Brazil Business Seminar was held in Beijing. As the main leader attending the meeting from the Brazilian side, Brazilian Vice President and Minister of Development, Industry, Trade, and Services, Geraldo Alckmin, met with Luckin Coffee(瑞幸咖啡) Chairman and CEO Guo Jin(郭谨) for discussions.


At the seminar, Guo Jin, on behalf of Luckin Coffee, signed a Memorandum of Understanding (MoU) with the Brazilian Trade and Investment Promotion Agency. Under the witness of high-level leaders from both China and Brazil, Luckin Coffee also signed a Letter of Intent for Cooperation in Coffee Procurement with multiple suppliers in Brazil.

According to the agreement, from 2024 to 2025, Luckin Coffee plans to procure approximately 120,000 tons of coffee beans from relevant coffee-producing regions in Brazil. With support from both Chinese and Brazilian governments, both parties will continuously deepen cooperation in the coffee industry, share industry concepts and practices, and promote deeper collaboration in the coffee sector.

Following the seminar, Alckmin visited a Luckin Coffee store in Beijing, tasted Luckin Coffee products, and highly praised Luckin Coffee's contributions to promoting China-Brazil coffee trade and industry development, as well as its high-quality products.

In recent years, China's coffee market has been rapidly developing, strongly boosting the growth of China-Brazil coffee trade. Luckin Coffee, as a significant representative of China's coffee market and an important link in China-Brazil coffee trade, has been pivotal. Regarding the signing of the MoU and the Letter of Intent, Luckin Coffee Chairman and CEO Guo Jin stated, "We believe that with the deepening of China-Brazil coffee trade cooperation, Luckin will bring more high-quality Brazilian coffee beans to China, meeting consumers' demand for premium coffee and driving the quality upgrade and mature development of China's coffee industry."

Brazil is one of the largest coffee-producing and exporting countries in the world. Its unique geographical and climatic conditions endow Brazilian coffee beans with distinctive flavors and excellent quality. Luckin Coffee's award-winning espresso blend, which has won gold at the IIAC International Coffee Tasting Competition for five consecutive years (2018-2022), uses high-quality Arabica coffee beans from renowned regions, including Brazil. In 2022, Luckin Coffee had signed a plan to procure approximately 45,000 tons of coffee beans from Brazil over three years.

EqualOcean reports that Luckin Coffee is one of China's largest coffee chains. With the rapid growth in the number of stores and users, the demand for a stable supply of high-quality coffee beans has increased. By the end of 2023, Luckin Coffee had accumulated 230 million customers. As of March 31, 2024, Luckin Coffee had 18,590 stores.

To continuously provide high-quality coffee, Luckin Coffee is optimizing its supply chain, building a vertical supply chain advantage, and collaborating with global premium suppliers to use high-quality coffee beans from renowned regions. In 2023, Luckin Coffee launched the "Global Coffee Bean Journey," exploring top coffee-producing regions worldwide to source the best coffee beans for consumers. Additionally, to enhance the quality control of coffee beans throughout the process, Luckin Coffee has significantly invested in the upstream supply chain, establishing a fresh fruit processing plant in Baoshan, Yunnan, and two automated roasting bases in Jiangsu and Fujian, forming a self-processing roasting supply network with an annual capacity of 45,000 tons.

This signing will effectively promote the construction of Luckin Coffee's global high-quality supply chain, continually bringing consumers high-quality, convenient, and cost-effective coffee services, and striving to build an excellent, world-class, century-old coffee brand.