Starbucks extends global roasting network with US$130m roasting facility in China

CHINA – Starbucks will be investing approximately US$130 million 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 US and its first in Asia, the company noted that the CIP will incorporate a roasting plant, warehouse and distribution center.

The coffee chain said that this will create a 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.

With the CIP set to handle Starbucks’ largest roasting capacity outside the US, the company said that the investment highlights its ambition to further globalize its roasting network and reinforces its strategic focus on the US and China as its two lead growth markets.

“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,” said Belinda Wong, chairman and chief executive officer, Starbucks China.

“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.”

“Starbucks has always taken a long-term view in China, and our commitment to the market has never been stronger.”

Currently, Starbucks operates six other roasting facilities—one in Amsterdam to support European markets, and five in the U.S.

The company said that the warehouse, roasting and distribution capabilities of the CIP will lay a strong foundation for its continued business growth and development in China.

Building on Starbucks sustainability announcement in January, the CIP will incorporate advancements in sustainable manufacturing, smart supply chain innovation, and technology to deliver energy- and water-efficient roasting operations 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 asporation to become a planet positive company. A company that gives more than we take from the planet,” said Kevin Johnson, president and chief executive officer, Starbucks. 

“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.”

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