Starbucks(US:SBUX) Zhong Guo Shi Pin Wang·2025-07-18 10:29Core Viewpoint - Starbucks has showcased its commitment to localizing its ready-to-drink (RTD) coffee business in China during the third China International Supply Chain Promotion Expo, highlighting a decade of growth and innovation in the market [1][3][14]. Group 1: Localization and Product Innovation - Starbucks has achieved 100% local incubation of its RTD products in China, creating a diverse matrix of eight RTD coffee series tailored to Chinese consumer preferences [5][9]. - The company has introduced new products like the Jasmine Latte, which combines local jasmine tea with high-quality Brazilian Arabica coffee, exemplifying "Chinese-style innovation" [5][9]. - Starbucks has established independent R&D teams in China to develop original RTD products, adapting global offerings to local tastes and preferences [7][9]. Group 2: Supply Chain and Distribution - The company has implemented a localized supply chain, sourcing raw materials from local regions, such as jasmine tea from Guangxi and Oolong tea from Fujian, ensuring authentic flavors in its products [9][13]. - Starbucks has expanded its production lines in cities like Tianjin, Suzhou, and Guangzhou, aiming to enhance distribution across over 1,300 counties and plans to increase sales points to 550,000 by 2025 [12][14]. - The brand is actively engaging with e-commerce platforms like Tmall, JD, and Douyin to broaden its online sales channels and enhance consumer interaction [12]. Group 3: Sustainability Initiatives - Starbucks aims to reduce global greenhouse gas emissions by 50% by 2030 compared to the 2019 fiscal year, collaborating with local partners to build a green supply chain [13]. - The company is focusing on improving the recyclability of its RTD packaging and has reduced label material usage by 50%, minimizing the use of virgin plastics [13][14]. - Starbucks has joined a pilot program for digital food labeling, enhancing consumer transparency and personalization in product offerings [13]. Group 4: Market Position and Future Outlook - The RTD business has become a key growth engine for Starbucks in China, achieving double-digit year-on-year growth in fiscal year 2024 and maintaining a strong market share [14][15]. - The company is committed to sharing its localized experiences and fostering collaborative value chain innovations with industry partners to continue growing alongside the Chinese RTD coffee market [15].