SUBSCRIBE

CATEGORIES

Yum China, Italy’s Lavazza aim to open 1,000 cafes in China by 2025

imageStock Markets53 minutes ago (Sep 23, 2021 07:01AM ET)

(C) Reuters. FILE PHOTO: Lavazza coffee logo is seen outside the new opening of Lavazza’s flagship coffee store downtown Milan, Italy September 19, 2017. REUTERS/Stefano Rellandini

MILAN (Reuters) – Chinese restaurant chain Yum China and Italian coffee maker Lavazza, which formed a partnership in 2020, aim to open 1,000 Lavazza cafes in China by 2025, they said on Thursday.

The two groups will inject $200 million initially into the joint venture to fund its future growth.

In addition, the joint venture will market, sell, and distribute Lavazza’s retail products in mainland China under an exclusivity agreement.

The first Lavazza flagship store in Shanghai, the first store outside of Italy, opened its doors to customers in April 2020. Lavazza has since grown to over 20 stores in China across Shanghai, Hangzhou, Beijing and Guangzhou.

“The recent progress of Lavazza cafes in China has been encouraging and reaffirms our belief that our partnership is well positioned to capture the significant coffee opportunity in China with accelerated store network development,” the CEO of Yum China, Joey Wat said.

The joint venture is owned by Yum China and Lavazza with stakes of 65% and 35%, respectively.

According to the Starbucks (NASDAQ:SBUX) China website, the U.S. company has over 5,000 stores in 200 cities in mainland China.

($1 = $1.0000)

Yum China, Italy’s Lavazza aim to open 1,000 cafes in China by 2025

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.