Starbucks Corporation : Starbucks to Partner with Ai Ni Group to Bring China's Yunnan Coffee to the World
02/06/2012 | 09:05am
Company signs agreement to form joint-venture in China's Yunnan
Province
As part of its ongoing efforts to help elevate the coffee industry in
China's Yunnan Province, Starbucks Coffee Company (NASDAQ: SBUX)
announced that it has signed an agreement to form a joint-venture
company with Ai Ni Group, one of the province's most established coffee
operators and agricultural companies in Yunnan. The joint-venture
company, which will be controlled by Starbucks, will purchase and export
high-quality arabica Yunnan coffee beans, as well as operate dry
mills in the province.
Starbucks and Ai Ni Group join government officials in Kunming to sign joint-venture agreement to bring China's Yunnan coffee to the world. (Photo: Business Wire)
John Culver, president, Starbucks China and Asia Pacific, and Liu
Minghui, Founder and Chairman, Ai Ni Group, each representing their
respective companies, attended the signing ceremony today in Kunming,
Yunnan's provincial capital. Vice Governor Gu Zhaoxi, Yunnan Provincial
Government, witnessed the ceremony.
"With its uniquely suitable climatic and soil conditions, Yunnan is one
of the best regions in the world to grow coffee. With Starbucks leading
coffee expertise, local market knowledge of our own Chinese enterprises,
like Ai Ni Group, and the significant investments made by the provincial
government, the full potential of Yunnan's coffee industry will be
gradually realized," said Vice Governor Gu Zhaoxi.
"The formation of our joint-venture company with Ai Ni Group marks
another significant milestone in Starbucks continued efforts to help
develop Yunnan's coffee industry," said John Culver, president,
Starbucks China and Asia Pacific. "The Starbucks China growth story is
also about giving back to the local community. Through the Starbucks
Yunnan Coffee Project and together with our partner Ai Ni Group, we are
committed to help local farmers elevate the quality of the coffee in the
region while bringing the best of Yunnan coffee to the rest of China and
the world."
With the establishment of the joint venture, Starbucks aims to increase
its coffee-sourcing activities in the Yunnan region for use in the
company's global blends, and build long term relationships with Yunnan's
coffee farmers. The joint-venture company will also adopt 'best
practice' processing methods to ensure a consistent and reliable source
of quality coffee for Starbucks.
"Ai Ni Group is excited to partner with Starbucks to bring global best
practices to the local coffee industry, and introduce Yunnan's coffee to
coffee lovers in China and beyond. With Starbucks coffee knowledge and
expertise, and our well established presence in Yunnan, we are confident
the new joint-venture company will be a resounding success in helping to
build Yunnan up as a globally recognized premier coffee growing region,"
said Liu Minghui, Founder and Chairman, Ai Ni Group.
Beyond the joint venture, the Starbucks Farmer Support Center in Pu'er
City, which will provide agronomy consultation services and support to
Yunnan's coffee growers, is expected to be operational this year. In
addition, the importation and local adaption tests for coffee seed
varietals, conducted in collaboration with the Tropical and Subtropical
Cash Crops Research Institute of the Yunnan Academy of Agricultural
Science (YAAS), are progressing on track and within expectations.
Through these various initiatives, Starbucks aims to develop a complete
value-chain in China - from coffee seed to the authentic Starbucks
Experience in stores.
Starbucks collaboration with Yunnan province coffee farmers and
suppliers reached a major milestone with the launch of Starbucks®
South of the Clouds Blend® in early 2009. With support from the
provincial government, Starbucks worked closely with coffee farmers and
suppliers in the Yunnan region to create Starbucks first coffee blend
that featured high-quality arabica coffee beans from the region.
Starbucks® South of the Clouds Blend® is now sold across
numerous Starbucks locations across Asia and the United States.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically
sourcing and roasting the highest-quality arabica coffee in the
world. Today, with stores around the globe, the company is the premier
roaster and retailer of specialty coffee in the world. Through our
unwavering commitment to excellence and our guiding principles, we bring
the unique Starbucks Experience to life for every customer
through every cup. To share in the experience, please visit us in our
stores or online at www.starbucks.com.
About Ai Ni Group
The Ai Ni Group, established in 1993, currently operates numerous coffee
processing facilities and two coffee farms with a total area of almost
500 hectares. In addition to its own harvests, in 2009-10, the Group
purchased and processed 6,900 tons of coffee parchment, benefiting
almost 4,600 coffee farmer households in Yunnan Province. The Group also
operates four high-end restaurants in Yunnan Province and manages a
cattle business of about 10,000 heads of beef cattle. More for
information about the Group's expansive business operations in China's
Yunnan Province, please visit http://www.ynaini.cn/.
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Starbucks Coffee Company
Christina McPherson, 206-318-7100
press@starbucks.com
© Business Wire 2012
