Blue Bottle Coffee debuts in Shanghai
The pricey hipster California chain Blue Bottle Coffee has opened its first mainland store in Shanghai, growing the list of brands that seek a foothold in the coffee hub of the world.
Blue Bottle Coffee, a California-based premium coffee chain, opened its first mainland store in a historical building near Suzhou Creek in Shanghai on Friday.
Blue Bottle has a strong fan base in Asia, with stores in Hong Kong, Japan, and South Korea. Now it is setting foot on the Chinese mainland as coffee culture starts to bloom across the country.
- But the coffee maker is entering a saturated market. Fellow competitors from North America include Starbucks and Tim Hortons. Local competitors are also growing fast and include Manner Coffee and Luckin Coffee. Blue Bottle, which focuses on single-origin beans, is hoping to compete for the premium customer segment.
- CEO Karl Strovink said China is a “strategic market” for the company, one where it sees a “long future.”
China news, weekly.
Sign up for The China Project’s weekly newsletter, our free roundup of the most important China stories.
Founded in 2002 in Oakland, California, Blue Bottle Coffee, Inc. is a coffee roaster and retailer with ties to Silicon Valley. In 2017, a majority stake in the company was acquired by Nestlé. The Financial Times reported its valuation at the time to be about $700 million.
- Blue Bottle is a major player in third-wave coffee, a movement emphasizing high-quality beans sourced from individual farms. Third-wave coffees are typically roasted lightly in order to bring out more aroma and distinct flavors.
But does Blue Bottle have a future in China?
Blue Bottle has thrived in the United States. But while the third-wave coffee market has taken hold in America’s major cities and parts of Asia, price-conscious Chinese consumers may not be so willing to accept premium coffee when cheaper alternatives abound. Chinese competitors like Manner Coffee, which is known for both quality and affordability, may give Blue Bottle a run for its money.
