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Yum China, Italy’s Lavazza aim to open 1,000 cafes in China by 2025 By Reuters

by Mike Robinson

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© Reuters. FILE PHOTO. The Lavazza logo can be seen at the Lavazza flagship coffee shop in Milan on September 19, 2017. REUTERS/Stefano Rellandini

MILAN (Reuters) – Chinese restaurant chain Yum China and Italian coffee maker Lavazza, which formed a partnership in 2020, aim to open 1,000 Lavazza cafés in China by 2025, they said on Thursday.

To fund the future growth of their joint venture, they will invest $200 million in it initially.

The joint venture will also market, sell and distribute Lavazza retail products throughout mainland China, under an exclusive agreement.

Customers were able to visit the Shanghai flagship Lavazza Lavazza store, which was opened in April 2020. It is also the first Lavazza shop outside of Italy. Lavazza is now present in over 20 Chinese stores, with locations located across China: Shanghai, Hangzhou Beijing, Guangzhou and Beijing.

“The recent progress of Lavazza cafés in China has been encouraging and reaffirms our belief that our partnership is well positioned to capture the significant coffee opportunity in China with accelerated store network development,” the CEO of Yum China, Joey Wat said.

Yum China and Lavazza own 65% and 35% of the joint venture.

The Starbucks (NASDAQ China) website states that the U.S. firm has more than 5,000 shops in over 200 Chinese cities.

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