Luckin Coffee (Jiangsu) Roasting Plant Starts Production, New Quality Production Capabilities Boost Industry Quality Upgrade

Apr 24, 2024

Kunshan, Jiangsu, April 24, 2024 -- Luckin Coffee (Jiangsu) Roasting Plant announced that it officially commenced operations in Kunshan, Suzhou City of Jiangsu Province. With a total planned investment of $120 million and an annual roasting capacity of 30,000 tons, it is the largest coffee roasting plant in China to date. Leveraging advantages in intelligent manufacturing and automation, this new Luckin plant deepens its vertical integration of the coffee supply chain, thereby empowering Chinese coffee industry upgrades with new technology-driven productivity and leading a new trend of high-quality sustainable development.

 

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Government officials from Suzhou and Kunshan, along with Mr. David Li, Chairman and CEO of Centurium Capital, and Dr. Jinyi Guo, Chairman and CEO of Luckin Coffee, attended the opening ceremony.

Mr. Zhou Wei, Secretary General of the Kunshan CPC Committee, said that Kunshan’s pursuit of  integrity, innovation, excellence, and relentless endeavor has made its No. 1 ranking among the top 100 counties in China for 19 consecutive years.

“Luckin Coffee shares the same spirit of innovation and integrity with Kunshan. The commencement of operations at the Luckin Coffee (Jiangsu) Roasting Plant marks an important milestone in Kunshan’s efforts to build a complete coffee industry chain, from ‘a coffee bean’ to ‘a cup of coffee.’ The plant embodies Luckin’s commitment to creating high-quality coffee and the strong momentum of its brand development. In just a few years, Luckin Coffee has become China’s largest coffee chain brand. As the place where dreams take off, we believe that Kunshan will help Luckin in its journey to become a world-class coffee brand,” commented Mr. Zhou.

 

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Dr. Jinyi Guo, Chairman and CEO of Luckin Coffee, stated that the Luckin Coffee (Jiangsu) Roasting Plant is a new milestone in building Luckin's high-quality supply chain. It integrates environmental friendliness, intelligent production, and quality control throughout various operational and production processes. By comprehensively integrating the coffee industry vertical supply chain, it will provide stronger quality support for Luckin Coffee’s more than 16,000 stores nationwide. Luckin will continue to provide coffee and other products with high quality, high affordability, and high convenience. By enhancing the resilience of the supply chain, Luckin aims to further drive industry quality upgrades and support China’s coffee industry towards global recognition.

 

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Luckin Coffee (Jiangsu) Roasting Plant is located within the Kunshan Comprehensive Free Trade Zone. It is an intelligent coffee roasting production plant that integrates green bean storage, roasting, packaging and distribution. The plant is equipped with the first constant temperature and humidity coffee green bean warehouse in China. Throughout the production process, it utilizes cutting-edge intelligent equipment from around the world, achieving highly efficient automation in the entire process from green bean processing, coffee bean roasting, packaging, to warehouse logistics. It sets a new benchmark for coffee quality control and the intelligent development of the industry. Meanwhile, the plant actively implements a sustainable development strategy, and the green factory was created in accordance with Three-Star Standards for Green Buildings of China, which applies energy-saving and carbon-reducing technologies in areas such as water recycling, solar photovoltaic power generation, and heat recovery, leading the industry in green development and setting a new benchmark for the environmental friendliness of China’s coffee roasting facilities.

 

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With the completion of this intelligent, automated, and green sustainable coffee roasting plant, Luckin Coffee has further achieved deep integration of its high-quality vertical supply chain from fresh beans to coffee. It strives to apply the core values of ‘high technology, high efficiency, and high quality’ throughout the site’s entire production process, actively responding to the call for the development of new technology-driven productivity.

As the largest coffee chain brand in China, Luckin Coffee is committed to building professional capabilities by bridging and expanding the entire coffee industry supply chain and actively contributing to in the rapid growth of China’s coffee industry. In 2021, Luckin Coffee unveiled its first fully automated intelligent roasting plant in Fujian. Leveraging the two major coffee roasting sites in Jiangsu and Fujian, Luckin Coffee boasts a self-processing roasting supply network with an annual capacity exceeding 45,000 tons. This will enable the company to respond more quickly and accurately to consumer demands, as well as fast delivery of high-quality coffee beans to its nationwide stores.

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Furthermore, the launch of Luckin Coffee’s “Odyssey to the God Shot (Global Bean Search Journey)” and the completion of the first green coffee bean processing plant in Baoshan City, Yunnan province further enhanced the unique and stable quality of its coffee green bean supply system. In the past seven years since its inception, Luckin Coffee has made significant strides in establishing a leading domestic and internationally-recognized world-class supply chain and production system.

By the end of 2023, the number of Luckin stores exceeded 16,000 in China, with cumulative transacting customers surpassing 230 million, further expanding its leading position in the China coffee market in terms of number of stores. The official commencement of operations at Luckin Coffee (Jiangsu) Roasting Plant provided a brand-new and practical example of exploring new quality production capabilities, driving quality upgrades and propelling Chinese coffee brands towards the global market. In the future, Luckin Coffee, growing alongside the Chinese coffee market, aims to continue to serve consumers with professionalism and quality, striving to build an outstanding, world-class century-old coffee brand.

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