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Starbucks and Ai Ni Group join government officials in Kunming to sign joint-venture agreement to bring China's Yunnan coffee to the world.
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.
Within Yunnan, the region of Pu'er produces roughly half of the province's total coffee output with the region having produced 39,000 tons of coffee out of the total 82,000 tons produced during the 2012-2013 harvest. Further, over the next 5-10 years, the Pu'er Principal Government plans to expand its coffee plantation area to over 1 million mu (which roughly translates to 66,667 hectares) to capture a market value of about RMB10 billion (US$1.61 billion). Also, the Pu'er region averages over 1 ton of green coffee per hectare, which would make the region's green coffee output raise by over 50 percent.
Coffee bean sales in China in 2011 hit $100 million, a sliver of the $7.2 billion in the US. But, that $100 million represented a 20 percent jump from the year before. Enough 20 percent year over year jumps and China drinkers will be making a coffee market dent. It happened with wine. Wine consumpotion doubled in a half decade; consumption of Bordeaux alone increased about 3,500 percent in the decade between 2001 and 2011. More important is how much of that growth came as Chinese became comfortable popping a cork at home without a special occasion.
Zion international group
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