Core Viewpoint - Starbucks China is extending its carbon reduction efforts to upstream supply chain management through a strategic partnership with Envision Group, aiming to establish a carbon management platform for its suppliers over the next three years [1]. Group 1: Carbon Management Initiatives - Starbucks China has previously collaborated with Envision in areas of direct and indirect emissions (Scope 1 and Scope 2), integrating over 7,500 stores into Envision's smart IoT operating system for efficient management of energy systems [2]. - The initiative has led to an average annual energy savings of 12% per store, translating to over 6,000 yuan in savings on water and electricity costs [2]. - More than 2,100 stores in China have received green store certification, representing nearly 30% of the total stores, significantly exceeding the global average [3]. Group 2: Sustainable Practices in Operations - The Starbucks Coffee Innovation Park utilizes Envision's "zero-carbon integrated energy solution," incorporating solar panels, smart energy storage, and digital carbon management systems to achieve energy savings and carbon reduction [4]. - The park features over 26,000 square meters of solar panels, meeting 20% of its energy needs, and achieves 100% green electricity coverage, with annual carbon reduction equivalent to the absorption of 800,000 coffee trees [4]. Group 3: Focus on Scope 3 Emissions - For Starbucks, Scope 3 emissions represent the core challenge, with approximately 70% of its total carbon emissions originating from upstream suppliers [5]. - The company plans to develop sustainable dairy management tools in collaboration with Envision to address emissions from dairy farms, focusing on renewable energy procurement and optimizing feed management [5]. - Starbucks China has committed to covering the costs of carbon footprint assessments for suppliers, even as business expands, demonstrating its dedication to sustainability [5].

Core Viewpoint - Starbucks China has announced a strategic partnership with Envision Technology Group to implement a comprehensive carbon management system, aiming to cover 100% of its direct and significant indirect suppliers over the next three years, thereby creating a "full-chain collaborative carbon reduction" model [2] Group 1: Strategic Partnership and Implementation - The collaboration will build on existing green store initiatives and the Starbucks Coffee Innovation Park, utilizing a digital carbon management platform to measure the carbon footprint of thousands of products [2] - Starbucks has already achieved operational cost reductions through previous collaborations with Envision, with over 7,500 stores connected to Envision's smart IoT operating system for real-time data tracking [2] - The Starbucks Coffee Innovation Park employs solar panels, smart energy storage, direct current fast charging, and green electricity procurement to achieve energy savings and carbon reduction [2] Group 2: Economic Considerations and Challenges - While some projects have yielded positive returns, not all initiatives are economically beneficial, particularly in the dairy supply chain where Starbucks is working on carbon reduction projects [3] - The dairy market is experiencing price declines due to oversupply, which has allowed other beverage brands to secure high-quality dairy sources at lower prices, impacting Starbucks' cost structure [4] - Starbucks is willing to incur additional costs for carbon reduction initiatives, which is challenging in the current economic climate [5]

Group 1 - The third China International Supply Chain Promotion Expo (Chain Expo) concluded in Beijing, with a record participation from American companies, highlighting the strong attraction of the Chinese supply chain to U.S. enterprises [1][2] - The number of American exhibitors increased by 15% year-on-year, marking the third consecutive year that U.S. companies ranked first among foreign exhibitors, with 60% being Fortune 500 companies [1][2] - Major U.S. corporations such as Nvidia, Apple, Tesla, Honeywell, and Cargill showcased their deep integration with the Chinese supply chain, indicating substantial cooperation beyond mere technology display [2] Group 2 - The Vice President of the China Council for the Promotion of International Trade, Li Xingqian, emphasized the comprehensive advantages of the Chinese supply chain, which can independently complete production processes that require multi-national collaboration in other regions [3] - Li noted that the deep integration of global industrial and supply chains is a common consensus among the business community, with cooperation evolving from product and technology levels to supply chain levels [3] - The Chain Expo serves as a new platform for China to promote high-level openness, reflecting the country's commitment to maintaining a multilateral trade system and ensuring the stability of global industrial and supply chains [3]

Core Viewpoint - Starbucks emphasizes its commitment to localizing its supply chain and innovating its ready-to-drink (RTD) coffee products in China, showcasing its growth and sustainability efforts at the China International Supply Chain Promotion Expo [1][14]. Product Innovation Driven by Consumer Demand - Starbucks has introduced innovative RTD products tailored to Chinese consumers, such as the Jasmine Latte, which combines high-quality Arabica coffee with local jasmine tea [3][6]. - The company has developed a range of RTD products based on local taste preferences and consumption scenarios, including low-sugar options to meet health trends [6][10]. - Currently, Starbucks offers eight major RTD series in China, all locally developed and produced, with a focus on low-sugar and zero-sugar products [6][10]. Localized Supply Chain Development - Starbucks has established a deeply localized supply chain, sourcing ingredients like jasmine tea from Guangxi and Tieguanyin tea from Fujian [8][10]. - The company has achieved 100% local procurement and processing for its RTD product packaging, enhancing sustainability and consumer experience [8][10]. - Starbucks aims to reduce its carbon emissions by 50% by 2030 compared to the 2019 fiscal year, collaborating with local partners to build a green supply chain [10][14]. Strategic Channel and Market Promotion - Starbucks has strategically positioned production lines in cities like Tianjin, Suzhou, and Guangzhou, with a distribution network covering over 1,300 counties in China [12][13]. - The company plans to expand its offline sales points to 550,000 by 2025 and continues to collaborate with e-commerce platforms for enhanced market reach [13][14]. - Starbucks' RTD business has achieved double-digit growth year-on-year in fiscal 2024, maintaining a strong market share and leading in e-commerce channels [13][14]. Conclusion - The success of Starbucks' RTD business in China is attributed to its product innovation, localized supply chain, and effective marketing strategies, positioning it as a leader in the ready-to-drink coffee market [14].

Core Insights - The carbon emissions from a traditional latte amount to 1.2 kilograms, highlighting the significant environmental impact of food production, particularly in the coffee industry [1][6]. - The food industry is actively pursuing a comprehensive carbon reduction strategy across its entire supply chain, from agricultural practices to transportation and retail [2][3]. Group 1: Carbon Emissions in the Coffee Industry - Approximately 70% of the carbon emissions in the coffee value chain originate from upstream suppliers, with raw material sourcing contributing 84.47% of the carbon footprint [6]. - In the raw materials phase, milk accounts for 80% of the carbon footprint, while coffee beans contribute 16% and packaging materials 4% [6]. - Starbucks has partnered with Envision Technology Group to develop a digital carbon management platform aimed at measuring and reducing carbon emissions across its supply chain [6][7]. Group 2: Green Agriculture Initiatives - The green agriculture market in China has surpassed 500 billion yuan, reflecting a significant shift towards sustainable agricultural practices [10]. - Companies like McDonald's are collaborating with suppliers to promote sustainable practices, such as regenerative agriculture techniques, which include crop rotation and water-saving irrigation methods [9][8]. - Advanced technologies, including AI and blockchain, are being utilized to enhance transparency and efficiency in agricultural practices, benefiting both large-scale operations and smallholder farmers [14][15].

Core Viewpoint - The third China International Supply Chain Promotion Expo highlights the emphasis on green supply chains, with Starbucks China showcasing its sustainable practices and announcing a strategic partnership with Envision Technology Group to enhance its green coffee strategy [1][2]. Group 1: Starbucks' Green Initiatives - Starbucks China has achieved a high level of localization, with 98% of its products manufactured locally, and aims to create a more sustainable supply chain in collaboration with suppliers [2]. - The Starbucks China Coffee Innovation Industrial Park, with a total investment of 1.5 billion yuan, is the largest strategic investment by Starbucks outside the U.S. and is designed to be the greenest production base globally, utilizing 100% green electricity and reducing carbon emissions equivalent to 800,000 coffee trees annually [2][3]. - Currently, 2,100 Starbucks stores in China have received green store certification, all using green-certified electricity, and over 7,500 stores are connected to an intelligent IoT system for real-time data tracking and optimization of energy efficiency [3]. Group 2: Addressing Scope 3 Emissions - Approximately 70% of Starbucks' total carbon emissions come from its supply chain, and the company is actively working on reducing Scope 3 emissions, which are indirect emissions from suppliers and customers [4]. - Starbucks plans to implement a digital carbon management system to measure the carbon footprint of thousands of products and develop tailored reduction strategies, focusing on key suppliers [5]. - The carbon footprint of a latte is significantly influenced by milk production, which accounts for 80% of its emissions, prompting Starbucks to prioritize sustainable practices in dairy sourcing [5][6]. Group 3: Collaboration with Supply Chain Partners - Supply chain partners are responding positively to Starbucks' sustainability initiatives, with commitments to reduce carbon emissions in milk production by 28% by 2030 [6]. - The logistics sector is also involved in carbon reduction efforts, with plans to electrify delivery vehicles and optimize transportation efficiency in collaboration with Starbucks and Envision [6].

Core Viewpoint - Investors are presented with attractive income stock opportunities in 2025, particularly in light of high inflation and interest rates affecting financial results and share prices of leading consumer brands, resulting in increased dividend yields for several top companies [1]. Group 1: Target (TGT) - Target is considered a strong buy despite declining sales, attributed to its low price and high dividend yield, making it an opportune time for investment [4][9]. - The company has faced significant challenges, with its stock down 62% from its highs, and sales decreased by 2.8% year-over-year in the first quarter of fiscal 2025, with comparable sales down 3.8% [5]. - Target is making progress in cost management, with operating income up 19% year-over-year, and digital sales showing a 4.7% increase, alongside a 35% rise in same-day delivery sales [6]. - The management has initiated an enterprise acceleration office to enhance technology and data utilization, aiming to improve operational agility, similar to strategies employed prior to the pandemic [7]. - Target has a strong dividend history, being a Dividend King with 54 consecutive years of dividend increases, currently yielding 4.4% [8]. Group 2: Starbucks (SBUX) - Starbucks is noted for its attractive dividend yield of 2.6%, despite underperforming the market and maintaining a share price similar to 2019 [11]. - The company has experienced a decline in sales, but comparable-store sales are stabilizing, with only a 1% decrease year-over-year in the second quarter of fiscal 2024 [12]. - New CEO Brian Niccol is focusing on customer-centric strategies to revitalize the brand and enhance customer engagement in stores [13]. - Starbucks has a strong global presence, which supports consistent financial results and dividend payments, with dividends increasing from $1.44 in fiscal 2019 to a projected $2.44 in fiscal 2025 [14][15]. Group 3: Philip Morris International (PM) - Philip Morris International is positioned for long-term growth, particularly with its focus on next-generation smoke-free products, which now account for over 40% of its revenue [18][20]. - The company reported a 10.2% increase in organic revenue to $9.3 billion in the first quarter, with smoke-free product revenue growing by 20.4% [21]. - Adjusted earnings per share rose 17% to $1.76, and the company offers a dividend yield of 3%, with a strong history of dividend increases [22].

Core Insights - The article discusses the transformation of supply chain management in the consumer sector through digitalization and traceability systems [2][3][5]. Group 1: Supply Chain Innovations - The "one product, one code" traceability system allows companies to track sales data from raw materials to end consumers, enhancing transparency in the green supply chain [2]. - McDonald's has introduced a "one box, one code" initiative, enabling individual tracking of each box of goods, which improves regulatory efficiency and allows for performance comparisons across factories [3]. - Starbucks is collaborating with Envision Group to implement a digital supply chain management platform that will cover 100% of its direct and significant indirect suppliers, aiming to quantify and reduce carbon footprints [5]. Group 2: Digital Transformation Efforts - Yum China is launching a new supply chain model in Jinan, integrating short-shelf-life food production and smart logistics to enhance operational efficiency [6]. - The digitalization efforts across these companies are aimed at improving collaboration and efficiency within the supply chain, with a focus on sustainability and responsiveness to consumer demand [4][6]. - Companies are committed to ongoing investments in digital infrastructure, including AI and automation, to further enhance operational efficiency [6].

Business & TechCoffee Shop Opening Drive-Thru 100 Yards From Existing LocationA coffee shop is opening a new drive-thru in Anne Arundel County. The chain already has another location about a football field away.Starbucks plans to open this drive-thru in the Odenton Shopping Center sometime in July. (Jacob Baumgart/Patch)ODENTON, MD — Starbucks is opening a new stand-alone coffee shop along Maryland Route 175 in the Odenton Shopping Center. The shop will be located about a football field away from a supermar ...

Core Viewpoint - Starbucks China is committed to sustainable development and has announced a strategic partnership with Envision Group to enhance its green supply chain and sustainable practices in the Chinese market [1][6]. Group 1: Sustainable Practices - The Starbucks exhibition at the China International Supply Chain Promotion Expo showcased its sustainable coffee journey, emphasizing its green supply chain, green parks, and green retail practices [3]. - The modular coffee bar at the exhibition, made from eco-friendly materials, exemplifies Starbucks' sustainable retail philosophy and innovation [3]. - Starbucks has established over 2,100 green stores in China, implementing a green store certification system with eight sustainability standards and 25 detailed indicators [5]. Group 2: Supply Chain and Carbon Reduction - Approximately 70% of Starbucks' carbon emissions in its supply chain come from suppliers, prompting the company to lead low-carbon transformation across its entire value chain [4]. - The Starbucks Coffee Innovation Park in Kunshan, launched in 2023, is a key achievement in its green supply chain, achieving multiple prestigious certifications and utilizing 100% green electricity [4]. - The partnership with Envision will create a digital carbon management platform to measure and reduce carbon footprints across Starbucks' supply chain [6][7]. Group 3: Collaboration and Industry Impact - The collaboration aims to set a new benchmark for green development in the coffee industry and promote broader green transformation in the food and beverage sector [6][7]. - Starbucks encourages suppliers to adopt successful carbon reduction practices and aims to build a platform for sharing these experiences across the industry [7]. - The strategic partnership reflects a shared commitment to sustainable development and aims to position Starbucks as a leader in carbon management within the retail sector [6][7].