Starbucks to invest $130m in China roasting facility

Starbucks is investing approximately $130 million in China to open a roasting facility in 2022, as part of its new Coffee Innovation Park (CIP).  

The CIP will incorporate a roasting plant, warehouse and distribution centre, and marks Starbucks largest manufacturing investment outside of the US and its first in Asia.

Building on Starbucks’ sustainability announcement made in January, the CIP aims to advance smart supply management and technology, and sustainable coffee manufacturing in China.

With its CIP, Starbucks aims to deliver the most energy-and-water-efficient roasting operations for Starbucks in the world, whilst minimising waste.

The plant will serve as a key component of Starbuck’s global roasting network and the investment extends the company’s commitment to strengthen its speciality coffee industry in China, where it aims to operate 6,000 stores by 2022.

In 2017, Starbucks acquired the outstanding 50% of its joint venture in China for $1.3 billion, building on the company’s ongoing investments in the country – its fastest-growing market outside the US in terms of store numbers.

“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 CEO of Starbucks. 

Belinda Wong, chairman and CEO of Starbucks China, said: “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. Starbucks has always taken a long-term view in China, and our commitment to the market has never been stronger.”

According to Starbucks, the new roasting plant facility will be designed with the intent to apply for US Green Building Council LEED Platinum certification, as well as China’s Three Star Green Building standards.

Construction of the CIP will begin later this year in Kunshan, an hour from Shanghai.