Luckin Coffee announced on November 22, 2024, a significant expansion of its coffee bean procurement from Brazil, signing a Memorandum of Understanding with the Brazilian Trade and Investment Promotion Agency. This agreement commits Luckin Coffee to purchase a total of 240,000 tons of Brazilian coffee beans between 2025 and 2029, valued at RMB 10 billion.
This expanded deal builds upon an initial June contract for 120,000 tons over two years, marking it as the largest coffee bean procurement plan in Luckin Coffee's history. The initiative aims to secure a stable supply of high-quality raw materials, strengthening the company's upstream supply chain advantage.
In conjunction with the procurement, Luckin Coffee has established key initiatives in Brazil, including the Luckin Brazil Office, the Luckin Brazil Grower Support Center, and Luckin Coffee High-Quality Coffee Plantation. These strategic moves are designed to enhance quality control capabilities at the upstream end of the supply chain and support sustainable coffee certification standards.
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