Starbucks to Invest $130 Million in Chinese Bean Roasting Plant

As many U.S. and foreign companies are planning Chinese exit strategies in the pharmaceutical world, Starbucks is going all in, announcing a $130,000,000 investment into a state of the art roasting facility in Kunshan, China, just outside of Shanghai.

Starbucks sees its future in China, despite the media and political backlash the nation is receiving over the COVID-19 global pandemic.

Press Release:

Starbucks Coffee Company, the global roaster and retailer of specialty coffee, announced today it will invest approximately $130 million (USD) in China to open a state-of-the-art roasting facility in 2022 as part of its new Coffee Innovation Park (CIP). As Starbucks largest manufacturing investment outside of the U.S. and its first in Asia, the CIP will incorporate a roasting plant, warehouse and distribution center, creating highly-skilled jobs and new career opportunities that will further drive smart and sustainable coffee manufacturing in China. The plant will serve as a key component of the Company’s global roasting network, and the bold infrastructure investment further deepens Starbucks multi-decade commitment to strengthen the specialty coffee industry in China, where it aims to have 6,000 stores by 2022.

“Starbucks has spent the past 20 years sharing its passion for coffee across China and helping to build a leading industry that makes us all proud. The roasting facilities at the Coffee Innovation Park will set a blueprint for the future of coffee roasting and supply chain management, and further elevate China’s coffee industry, while supporting Starbucks growth in China, with China,” said Belinda Wong, chairman and chief executive officer, Starbucks China. “Starbucks has always taken a long-term view in China, and our commitment to the market has never been stronger.”

Building on Starbucks sustainability announcement in January, the CIP will incorporate advancements in sustainable manufacturing, smart supply chain innovation, and technology to support the aspiration to deliver the most energy- and water-efficient roasting operations for Starbucks in the world, while minimizing waste. The new roasting plant facility will be designed with the intent to apply for U.S. Green Building Council LEED Platinum certification, as well as China’s Three Star Green Building standards.

“We recently announced a bold multi-decade aspiration to become a planet positive company. A company that gives more than we take from the planet. China is one of our most important markets and The Coffee Innovation Park is an important, strategic investment that has a positive impact on our carbon footprint and supports our long term sustainability goals,” said Kevin Johnson, president and chief executive officer, Starbucks.

Photo by Hans Vivek

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