Yum China Holdings, a licensee of Yum! Brands in mainland China, and Italian coffee company Luigi Lavazza are set to fast track the expansion of the Lavazza cafés network in China through their existing joint venture (JV).

Under the new expansion plan, the firms aim to open 1,000 Lavazza cafés by 2025, with an initial investment of $200m.

Yum China CEO Joey Wat said: “The recent progress of Lavazza cafés in China has been encouraging and reaffirms our belief that our partnership is well-positioned to capture the significant coffee opportunity in China with accelerated store network development.

“Leveraging Yum China’s world-class supply chain, digital capabilities and in-depth knowledge of Chinese consumers, we look forward to bringing Lavazza’s premium and authentic Italian coffee experience and products to even more consumers in China.”

Additionally, the JV is expected to become the exclusive distributor of Lavazza’s global product portfolio, including coffee beans, ground coffee and coffee capsules, across mainland China.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Last year, Yum China and Lavazza Group established the JV, with Yum China owning a 65% stake and the remaining 35% owned by the Italian coffee company.

In April 2020, Lavazza opened its first store outside Italy in Shanghai, China.

Since then, it has opened more than 20 stores across the country, with locations in Hangzhou, Beijing and Guangzhou, as well as further stores in Shanghai.

Lavazza Group CEO Antonio Baravalle said: “The potential for coffee in China is vast; there is a lot of unexplored white space.

“As the largest restaurant operator in China, Yum China is the best partner to further grow the Lavazza brand in this market given its deep understanding of local consumers and market dynamics.”

Earlier this month, Yum China Holdings launched a new campaign to promote balanced diets and healthy lifestyles.