- Blue Bottle has 100 cafes across the U.S. and Asia, alongside a growing e-commerce platform and subscription service.
- In February, Luckin Coffee opened its 30,000th store, the first Origin Flagship, in Shenzhen.
- Starbucks, on the other hand, is shuttering stores and said it would close 1% of its stores in North America.
Luckin Coffee has overtaken Starbucks in China and given the U.S. coffee giant a run for its money by attracting younger consumers with trendy offerings such as Moutai Latte and Coconut Latte. But now the focus has become more global for Luckin Coffee, which has reportedly acquired Blue Bottle from Nestlé.
Building on its expansion plans, Luckin Coffee has acquired Blue Bottle, which has 100 cafes across the U.S. and Asia, along with a growing e-commerce platform and subscription service.
Luckin Vs SBUX: A Global Story Now?
Starbucks has been struggling to lift sales in the past few quarters. However, its recent earnings offered a sigh of relief when it reported its first U.S. comparable sales growth in two years.
The coffee giant’s China business has suffered at the hands of Luckin Coffee, which is replacing it as the top go-to place for coffee in the country. Starbucks is currently operating in China through a joint venture with Boyu Capital, an investment firm, to run Starbucks retail operations in China under a $4 billion deal.
In February, Luckin Coffee opened its 30,000th store, the first Origin Flagship, in Shenzhen. As part of the company’s core theme of Global Origins, the opening signifies a strategic evolution for the brand and underscores Luckin's extensive network, which now spans over 300 cities across China.
It has been expanding its reach in overseas markets, including Singapore, Malaysia, and the United States. Blue Bottle’s acquisition now gives it access to Japan, Hong Kong, and South Korea in the Asia region, and to the U.S. Luckin Coffee would have access to high-demand areas such as New York and Boston.
“This gives the Luckin ecosystem instant global presence and local teams,” a bullish user on Stocktwits said.
Starbucks, on the other hand, is shuttering stores and, last year, said it would close 1% of its stores in North America as part of an overhaul under new CEO Brian Niccol to bring back the coffeehouse culture.
What Is Retail Thinking?
Retail sentiment on Starbucks jumped to ‘bearish’ from ‘extremely bearish’ a day earlier, while sentiment on Luckin Coffee was in the ‘bearish’ territory, compared to ‘bullish’ a day ago.
“Whoaaaa at this Blue Bottle news. Love Blue Bottle, but there aren't enough locations,” a user on Stocktwits said.
Shares of Luckin Coffee have gained nearly 21% over the last 12 months, while Starbucks stock has lost 8% during the same period.
For updates and corrections, email newsroom[at]stocktwits[dot]com.
Also See: ZETA Stock Dips: OpenAI-Trade Desk Deal Buzz Rattles Retail Bulls