FDBusiness.com

Starbucks will invest 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 CIP will incorporate a roasting plant, warehouse and distribution centre, 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. 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.

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 US Green Building Council LEED Platinum certification, as well as China’s Three Star Green Building standards.

From farm to cup, Starbucks has helped shape the specialty coffee industry in China through continued investment in training and infrastructure, including the opening of the Starbucks Yunnan Farmer Support Centre in 2012 to provide open-source agronomy resources to coffee farmers throughout the region. The new CIP, wholly-owned and operated by Starbucks, will source coffees from China and around the world directly from origin for processing, roasting, packaging and distribution, for the first time in China. Construction of the CIP will begin later this year in the city of Kunshan, an hour from Shanghai.

With the CIP set to handle Starbucks largest roasting capacity outside the US, the investment highlights the company’s ambition to further globalise its roasting network and reinforces Starbucks strategic focus on the US and China as its two lead growth markets. Currently, Starbucks operates six other roasting facilities — one in Amsterdam to support European markets, and five in the US. The warehouse, roasting and distribution capabilities of the CIP will lay a strong foundation for continued business growth and development in China.

Starbucks vision extends far beyond roasting. Once in operation, the CIP will integrate green coffee bean warehouse management and processing, with plans to co-locate a highly-automated and ‘intelligent’ distribution centre that will become the heart of Starbucks distribution network in China. The facility also will serve as a training ground for coffee roasters and key roles across Starbucks coffee supply chain in China.