Luckin Coffee has entered into a significant Memorandum of Understanding (MOU) with the Brazilian Trade and Investment Promotion Agency (ApexBrasil) to purchase 120,000 tonnes of coffee, valued at $500 million, over the next two years. This strategic move aims to cater to the growing demand for premium coffee in China, where the branded coffee shop market has recently surpassed the United States, boasting over 50,000 outlets. The partnership underscores the burgeoning coffee trade between China and Brazil, the world's largest coffee producer, whose exports to China have surged dramatically. In 2023, China ranked as the sixth largest buyer of Brazilian coffee, up from the 20th position the previous year, with imports skyrocketing from $80 million to $280 million. Luckin Coffee, China's largest coffee chain with 18,558 locations, is preparing to support its rapid expansion with a new 570,000 square foot roasting facility in Suzhou City, Jiangsu. The facility, set to be China's largest with an annual roasting capacity of 30,000 tons, complements an existing factory in Pingnan, Fujian, capable of producing 15,000 tons of roasted coffee annually.
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