Luckin Coffee, China's largest coffee chain, has signed a Memorandum of Understanding with the Brazilian Trade and Investment Promotion Agency to purchase 120,000 tons of coffee from Brazil over the next two years. This deal, valued at approximately $500 million, aims to meet the increasing demand for premium coffee in China and enhance the quality of the country's coffee industry. Brazil, the world's largest coffee producer, has seen a significant rise in exports to China, with an increase from $80 million in 2022 to $280 million in 2023. The new agreement is expected to further boost coffee consumption in China, which currently averages 15 cups per person annually but has the potential to reach 200 cups, similar to other Asian countries. Luckin Coffee, boasting 18,558 outlets, has also expanded its operations with a new 570,000-square-foot roasting facility in Suzhou City, Jiangsu, to support its rapid growth.
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