Starbucks to source coffee from China

Starbucks has set up a joint venture with a Chinese company to buy and process coffee beans in Yunnan province, Chinese state media reported. Starbucks and Ai Ni Group will purchase and export coffee to help supply Starbuck stores around the world, the official Xinhua news agency said, citing Starbucks China President Wang Jinlong. Financial details of the venture were not mentioned in the report.

Starbucks entered the mainland Chinese market when it opened its first retail outlet in Beijing in 1999. Starbucks has plans to increase its number of stores in China from more than 800 today to 1,500 by 2015.

Starbucks is making the right move by developing this joint venture as the Chinese government is encouraging more agricultural development in China. – David Nealis