Core 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].

Group 1: On's Q1 Performance - On reported a net sales of 727 million Swiss francs in Q1 2025, a 43% year-on-year increase, exceeding market expectations [1] - Net profit decreased by 38% to 56.7 million Swiss francs, with a net profit margin dropping to 7.8% due to rising costs and market expansion investments [1] - The EMEA market saw a sales increase of 33.6% to 169 million Swiss francs, while the Americas grew by 32.7% to 437 million Swiss francs, and the Asia-Pacific market surged by 130% to 121 million Swiss francs, now accounting for 16.6% of total revenue [1] Group 2: On's Strategic Adjustments - On plans to raise prices in the U.S. market starting July, with potential price increases in other markets next year [1] - The company has adjusted its full-year guidance for 2025, expecting at least a 28% increase in net sales and a gross margin target of 60%-60.5% [2] - The brand aims to expand its global store network by adding 15 new stores in 2025 and deepen collaborations in technology and fashion [2] Group 3: Under Armour's Financial Struggles - Under Armour reported a revenue decline of 9% to 5.2 billion USD for the fiscal year 2025, with a net loss of 200 million USD [3] - The fourth quarter saw an 11% revenue drop to 1.2 billion USD, with a net loss of 67 million USD [3] - The company is focusing on a turnaround plan led by returning CEO Kevin Plank, emphasizing premium products for members and targeting the Asia-Pacific market, particularly China [3][4] Group 4: ASICS Q1 Performance - ASICS reported a Q1 revenue exceeding 200 billion JPY for the first time, reaching 208.3 billion JPY, a 20% increase year-on-year [5] - The net profit for Q1 was 31.6 billion JPY, an 18% increase, marking a historical high for the period [5] - Performance running shoes and sports leisure products showed significant growth, with performance running shoes sales reaching 98 billion JPY, an 11.5% increase [5] Group 5: Starbucks' Strategic Moves in China - Starbucks is exploring various options for its China business, including potential equity sales, and has reached out to private equity firms for feedback [6] - The company reported a 5% year-on-year revenue growth in its latest quarterly results, reaching 739.7 million USD, with a 9% increase in store count to 7,758 [6] - Starbucks is committed to the Chinese market, seeing significant growth potential in the coming years [6] Group 6: Market Trends in Low-Sugar Tea - The low-sugar tea beverage market in China is experiencing rapid growth, with a sales growth rate of 41% in 2024, significantly outpacing the overall soft drink market [18] - Low-sugar tea now accounts for 20% of the bottled tea market, with expectations to reach 30% by 2029 [18] - Consumer health consciousness is driving the demand for low-sugar products, with 30% of Chinese consumers consuming health products daily [18]

Group 1: Luckin Coffee - Luckin Coffee plans to establish over 30 Brazilian coffee-themed stores nationwide and a Brazilian coffee museum as part of the "Luckin Brazilian Coffee Culture Festival 2.0" [1] - The company will collaborate with Brazilian entities to launch a "Support Program for Small and Medium Coffee Farmers," providing sustainable farming knowledge and technology [1] - CEO Guo Jinyi expressed the aim to promote Brazilian culture and enhance cooperation between China and Brazil in the coffee industry [1] Group 2: RUU Coffee - RUU Coffee, a brand under Lingji, opened franchise opportunities in February 2023, initially in Changsha and Shanghai, with an estimated investment of around 340,000 yuan [2] - The brand operates small stores focusing on takeout and delivery, with coffee prices ranging from 10 to 30 yuan [2] - RUU requires potential franchisees to first operate a Lingji store before upgrading to a dual-brand store, with initial investments between 150,000 to 200,000 yuan [2] Group 3: Starbucks - Starbucks has launched two new ready-to-drink tea coffee products: Jasmine Latte and Tieguanyin Oolong Latte, marking its entry into the tea coffee market [3] - The Jasmine Latte uses premium jasmine tea from Guangxi, while the Tieguanyin Oolong Latte features high-quality Tieguanyin from Anxi [3] - The new products are priced at 59.9 yuan for a pack of six 270ml bottles [3] Group 4: CoCo Milk Tea - CoCo Milk Tea faced operational challenges due to a surge in orders from JD's subsidy program, with some stores experiencing overwhelming demand [4] - During the subsidy period, prices for CoCo drinks dropped to as low as 1.9 yuan, leading to a significant increase in order volume [4] - The influx of orders caused equipment failures and shortages of raw materials, forcing some locations to temporarily suspend delivery services [4] Group 5: Pu'er Coffee - Pu'er Coffee has been recognized as one of the top 100 regional brand value products in China, with a brand value of 4.074 billion yuan [5] - The city of Pu'er is a major coffee production area in China, implementing various measures to enhance the coffee industry, including establishing quality standards [6] - The local government aims to promote the geographical indication of Pu'er Coffee to increase market share and brand recognition [6] Group 6: Algeria's Coffee Import Strategy - Algeria's government plans to involve state-owned enterprises in the import of coffee and bananas to stabilize prices and ensure supply [7] - The country imports approximately 130,000 tons of coffee beans annually, with an import value of around 300 million USD [7] - Recent supply shortages and price hikes have prompted the government to take action against speculation in the market [7]