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Luckin Coffee eyes Middle East, India

By WANG ZHUOQIONG | chinadaily.com.cn | Updated: 2019-07-22 21:09
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A logo of Luckin Coffee. [Photo/IC]

Luckin Coffee Inc, a leading Chinese coffee chain, and Kuwait Food Company Americana K.S.C.C., the largest integrated food product company in the Middle East, announced plans on Monday to establish a joint venture to launch a new retail coffee business in the Middle East and India.

The two sides signed a memorandum of understanding in Beijin, though Luckin didn't reveal the details of their collaboration. Luckin Coffee's Founder and CEO Qian Zhiya said this agreement represents Luckin Coffee's first step toward bringing its products from China to the world.

"We look forward to further expanding the freshly brewed coffee market internationally as we realize incredible growth opportunities available to us through our innovative business model," Qian said.

Industry expert Zhu Danpeng said Luckin Coffee's pioneering technology and business model have changed the transaction structure and user experience of China's coffee industry.

Zhu said it is about time for Luckin to expand its presence overseas to maximize profits after a public listing in May in the United States. "The move is part of Luckin's mid- and long-term strategy," Zhu said.

Americana Group has a diverse set of holdings, spanning manufacturing, distribution and restaurant operations in Middle East and India.

CEO Kesri Kapur said, "We at Americana believe this MoU will revolutionize the food and beverage retail industry in the Greater Middle East and India, regions that provide promising prospects for new retail growth and expansion."

Founded in Kuwait in 1964, Americana was the first to introduce the concept of quick-service restaurants to the Middle East in the 60's.

With its two divisions, the group operates 1,900 restaurants in 13 markets and 25 food production sites across the UAE, Saudi Arabia, Kuwait and Egypt, offering food products to consumers in over 20 markets within the MENA region and beyond.

Founded in 2017 and headquartered in Xiamen, Luckin Coffee operates over 3,000 stores across 40 cities in China. The company plans to open more than 4,500 stores by the end of 2019, which would make it China's largest coffee chain.

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