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.