HK coffee chain eyes mainland expansion
By Jin Jing |
October 28, 2011, Friday
|
Print Edition
Print Edition
THE Pacific Coffee Group plans to double its store number on the Chinese mainland by the end of this year following its acquisition by China Resources Enterprise last year.
Pacific Coffee, Hong Kong's second-largest coffee chain, aims to operate 50 outlets on the Chinese mainland by the year-end, up from the 25 stores nationwide, focusing on Shanghai, Beijing, Guangzhou, Hangzhou and Shenzhen, according to Raymond Tong, chief executive officer of Pacific Coffee Co.
State-controlled China Resources, a conglomerate focusing on retail, distribution and real estate, agreed to pay HK$326.6 million (US$42 million) for a 80 percent stake in Pacific Coffee in June last year to expand its consumer business. The remaining 20 percent remained with Chevalier Pacific Holdings Ltd.
Founded in 1992, Pacific Coffee now has more than 130 outlets in China, Singapore and Malaysia, including 105 stores in Hong Kong. The expansion of Pacific Coffee will add to the already furious market competition in Chinese mainland, where coffee consumption has risen rapidly.
Starbucks, the largest coffee chain in China, runs 500 stores after a 10-year build-up and plans to boost its store number to 1,500 outlets by 2015. Costa also aims to open 170 stores by the year's end.
Tong said Pacific Coffee is able to grow at a faster speed by leveraging the resources and retail business of China Resources. "The coffee business on the mainland is still at an early stage. It has just moved into high gear and in the next five to 10 years, the potential is enormous."
Pacific Coffee, Hong Kong's second-largest coffee chain, aims to operate 50 outlets on the Chinese mainland by the year-end, up from the 25 stores nationwide, focusing on Shanghai, Beijing, Guangzhou, Hangzhou and Shenzhen, according to Raymond Tong, chief executive officer of Pacific Coffee Co.
State-controlled China Resources, a conglomerate focusing on retail, distribution and real estate, agreed to pay HK$326.6 million (US$42 million) for a 80 percent stake in Pacific Coffee in June last year to expand its consumer business. The remaining 20 percent remained with Chevalier Pacific Holdings Ltd.
Founded in 1992, Pacific Coffee now has more than 130 outlets in China, Singapore and Malaysia, including 105 stores in Hong Kong. The expansion of Pacific Coffee will add to the already furious market competition in Chinese mainland, where coffee consumption has risen rapidly.
Starbucks, the largest coffee chain in China, runs 500 stores after a 10-year build-up and plans to boost its store number to 1,500 outlets by 2015. Costa also aims to open 170 stores by the year's end.
Tong said Pacific Coffee is able to grow at a faster speed by leveraging the resources and retail business of China Resources. "The coffee business on the mainland is still at an early stage. It has just moved into high gear and in the next five to 10 years, the potential is enormous."
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