Luckin Coffee stores overtake Starbucks in China and stock jumps to all time high

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photo: EqualOcean

Luckin Coffee (NASDAQ: LK), traded at all time highs on Monday as the stock continues to steam ahead in tandem with the growth of its store count now surpassing Starbucks in China.

Luckin is now the largest coffee chain in China: As context, Luckin took two years from its inception to overtake the 41,00  store count of Starbucks (NASDAQ: SBUX) which took two-decades to build out. The store count for both companies are changing literally by the day

The stock hit US$36 on December 23, up from a low of US$13 in May, just a few days after its IPO. Analysts expect the company to earn US$2.1 billion in annual revenues by 2020 up from some US$743 million. Fuelling this growth are new store sales. Luckin Coffee formed in 2017 and listed this year, now operates 4,280 according to its website. This growth represents a more than 200 per cent rise year on year, at the time of this report.

Luckin’s prices its coffee noticeably lower than Starbucks. That results in Starbucks by default being set to serve wealthier customers. Starbucks lattes cost roughly US$4.30 a cup whereas “Luckin is way more affordable at $1.50,” according to a source in China.

Lets see how Luckin continues to grow the coffee culture in the traditionally tea drinking country.

When is Jamaica Coffee Festival 2020

Ok, So the festival is March 7, 2020. Important to note is that it is free on entry in the Blue Mountains. Any price one sees for the festival on flyers relates to bus transportation but entrance is free ( at least it was in 2019). That means if you drive or walk to the festival there’s no cover.

The festival organisers 8 hours ago (December 10) started calling on exhibitors to apply. They mean business. Maybe they want to match the Rum Festival also held under the Tourism Linkages unit to boost gastronomy. The Jamaica Blue Mountain coffee festival was cool but the rum festival was on fire: Entertaining with comedian bartenders, informative with sugar displays and you got drunk.

The coffee festival can be described in one word. Coffee. And that’s really all you got with various brands setting up stalls. The year was encouraging but next year will/should build on missed opportunities. The biggest missed opp was that festival goers wanted more local innovation from the coffee companies.

They wanted coffee but not just coffee. Everyone served the dark beverage (and it all tasted like your grandfathers brew). They didn’t want fancy Italian name drinks either, they wanted a wow factor. And it was absent.

Don’t get me wrong, the stalls were pretty and the music was fat and the event was well done. But no dealer or coffeefile had a wow factor.

What should the wow factor be this year. That’s really for the suppliers to say. Were I to exhibit I would just set up a cupping stall doing basic coffee 101.

It would start with a quick cupping of rubbish instant coffee. Then transition to dark muddy coffee. Then transition to medium coffee with just chocolate tones. Then transition to fruity coffee with chocolate tones. At the end of the 4th cup you say WOW that’s good coffee. Of course, I can hear people say that’s a boring cupping class. Bear in mind the most popular stall at the rum festival was the cupping to understand good rum from bulk. Why not the same for coffee but done by really cool locals who know the craft.

That will give the festival goers an experience or as I rather say some theatre.

But at the festival in 2019, the evidence was clear, Starbucks avoidance by patrons was palpable. The hype for this brand on the flat in the city did not transition in the cool blue mountains.

Festival goers just kept walking by the green mermaid goblin logo in search of local innovation. My solution for Starbucks for the 2020 festival. It is easy….but you’d have to pay me to consult. It however would involve scaling back and focusing on farmers. I probably said too much already.

Again people want local innovation.

Jamaica Coffee Festival

Ok, So there the coffee festival planned for the first weekend in March. To be precise its March 7, 2020. Interested , well it depends on whether you yearn for coffee or earn from coffee. Over the last two years, the festival was held over two days with the first day, dedicated to business Development workshops For Farmers.

It was really the perfect day for overseas and locals roasters and traders to meet with local farmers and processors. After all we all want the access to the holy grail–Green beans. You can barter with the farmers or play hard ball with the licensed processors.

The main event is in the Jamaica Blue Mountains on the soldier camp of New Castle . If you see an entry fee its really for transport . Last year, transport cost J$1,500 or about $12 USD from Mona.

 

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Banksy coffee

OK, you know you are large when websites are putting your work on coffee mugs. This ‘laugh now chimp’ was stenciled in various parts of the UK but now has made its way to a coffee mug hahah.

The Banksy Laugh Now Chimp coffee mug shows a dejected chimpanzee wearing a billboard around its neck with the slogan “Laugh now, but one day we’ll be in charge”. Maybe people buying the mug will see it miraculously shatter before their eyes.

I wonder if Banksy likes Jamaica Blue Mountain in his cup.

 

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