Yum China partners with Lavazza to launch coffee shop concept in China

04 May 2020 --- Yum China Holdings has entered into a joint venture to develop the Lavazza coffee shop concept in China. As the first step, a Lavazza flagship store in Shanghai, their first outside of Italy, has opened its doors to customers in Asia.

Consumers are increasingly captivated by the stories behind their food and beverage products. This phenomenon holds notable influence on purchasing decisions and has resulted in companies increasingly paying attention to storytelling in branding strategies. “Storytelling: Winning with Words” tops Innova Market Insights’ Top Ten Trends list for 2020. The market researcher underscores a growing consumer affinity for products backed by a compelling narrative. In this instance, it is an authentic Italian coffee experience that consumers in China can experience. 

“We’re thrilled to partner with Lavazza and to bring their authentic Italian coffee experience to China. This is great news for consumers who seek a premium coffee experience and we are excited to welcome them to the new flagship store,” says Joey Wat, CEO of Yum China. “We see great potential for coffee in China and Lavazza shares this enthusiasm. Leveraging our deep understanding of Chinese consumers, we look forward to working together with Lavazza to explore the coffee market in China.”

Lavazza's first flagship store in Asia opens in Shanghai“China is an important market with huge untapped potential for coffee consumption. We have been searching for the right opportunities to establish Lavazza in China and Asia and this partnership is an important first step,” adds Antonio Baravalle, CEO of Lavazza Group.

In recent years, the Lavazza Group has embarked upon a process of international development aimed at tapping into new markets and meeting rising customer demand for premium coffee. Meanwhile, Yum China has made encouraging advances into China’s coffee market and, in 2019, its brands sold 130 million cups of coffee to Chinese consumers. Combining the strengths of both companies will create a strong platform for the Lavazza coffee shop concept to succeed in China, says Yum China.

An authentic Italian coffee experience
The flagship store is located in Jing’an, a historical district in the heart of Shanghai. Embracing tradition and innovation, the new store allows customers to experience first-hand every aspect of Lavazza within an Italian-styled setting.

Lavazza’s iconic Moka Carmencita coffee maker, with its distinctive conical shape, is in full display throughout the store. The Elektra Belle Epoque limited edition espresso machine, whose look is inspired by the very first espresso machine, can also be found in the store. It aims to preserve the charm of the history of coffee while telling the story of Lavazza's pioneering role in the development of coffee.

Like Lavazza's first flagship store in Milan, the Shanghai Flagship Store serves as a “gastronomic café,” offering a variety of classic and creative coffee options alongside an exceptional food selection that includes a range of traditional Italian inspired snacks. Lavazza’s range of premium coffee beans include Lavazza Kafa, which originates from the Ethiopian forest, and the Lavazza Classic Collection, which offers traditional Italian espresso coffee with a contemporary twist, according to the coffee manufacturer. 

More than just the classic Italian espresso, Lavazza employs a variety of roasting and extraction techniques, introducing unique coffee creations to China for the first time. A particular highlight is Bel Paese Coffee, which is an exclusive line-up created for the Chinese market, offering a “unique journey of tastes from across the different regions of Italy.”

Coffee Design creations are also available at the Shanghai Flagship Store and offer a line of specialty drinks that bring customers an innovative coffee experience based on exceptional gastronomy techniques.

To create the food offering for the flagship store, Lavazza partnered with a Michelin-starred chef to bring the most authentic Italian street food to the local Chinese market. Customers will be able to enjoy a wide offering of savory and sweet Italian snacks from across Italy.

Last November, Lavazza introduced Eco Caps, a range of compostable coffee capsules, to address consumers’ rising environmental concerns. To ensure that all coffee capsules are responsibly thrown away, Lavazza partnered with TerraCycle to launch a program to provide a composting solution for used coffee capsules in the UK.

Edited by Elizabeth Green