Starbucks aims to double its China store count by 2022

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Supported by those initiatives, the company announced plans to build 600 net new stores annually over the next five years in Mainland China - a goal that would double the market's store count from the end of fiscal year 2017 to 6,000 across 230 cities.

Starbucks is looking to leverage the worldwide coffee alliance it recently announced with Nestle in order to provide even more options at home for the consumer in China in the near future, said the company through a prepared statement released at the time the alliance was announced earlier this month.

About 15 percent of Starbucks' revenue came from the Chinese and Asia-Pacific markets - about US$3.2 billion - in fiscal 2017, company data compiled by Bloomberg showed.

Same-store sales growth in China locations rose 4% vs. a year earlier in fiscal Q2 vs. 2% in the US and worldwide. In China, where cafe culture is less mature but e-commerce more developed, Starbucks cafes have cornered the market on plush but casual meeting spots.

While the same sales of the stores in the U.S. have not reached the expectations, robust performance in the new stores in the Stateside means its business is on track again for delivering the anticipated rate of growth in the U.S., Johnson said.

In May, Starbucks entered into a deal with Swiss food giant Nestle, the largest food and beverage company in the world, to give the company the exclusive rights to sell packaged coffees as well as teas from Starbuck across the globe. That's something Starbucks hasn't done previously in the country.

In the market for ready-to-drink coffees, Starbucks remains in competition with Nestle.

The 8.1 billion yuan (S$1.7 billion) ready-to-drink coffee market in China is now dominated by Nestle with 71 per cent market share, according to data from Euromonitor International.

The chain also bringing a new line of pre-made cold tea as well as coffee to China next month.

The growth is helping the coffee chain create 10,000 jobs a year in China.

"Starbucks is committed to playing the long game in China and is proud to be an integral part of the local community for almost 20 years", said Belinda Wong, Starbucks China Chief Executive Officer.

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