Luckin Coffee signs landmark deal with Brazil, boosting global coffee trade

Luckin Coffee, China’s largest coffee chain, has entered into an agreement with the Brazilian Trade and Investment Promotion Agency to purchase 240,000 tons of Brazilian coffee beans from 2025 to 2029. This deal, worth 10 billion RMB, was formalised on November 19 in Brasília in the presence of Brazil’s Vice President Geraldo Alckmin. The move not only cements Luckin Coffee’s dominance in the Chinese coffee market but also elevates Sino-Brazilian economic and cultural collaboration to new heights.

This procurement agreement doubles a previous commitment made in June, which saw the company pledge to import 120,000 tons of coffee beans over two years. By scaling its investment, Luckin Coffee reinforces its strategy of integrating global supply chains to meet the rising demand for high-quality coffee in China.

Luckin Coffee’s CEO, Dr. Jinyi Guo, noted the symbolic role coffee has played in the 50 years of diplomatic ties between China and Brazil, calling it a testament to the shared fortunes of the two nations. He further expressed the company’s ambition to act as a bridge between the two industries, promoting growth and innovation while bringing premium Brazilian coffee to a global audience.

Building a stronger presence in Brazil

As part of its expanded operations, Luckin Coffee announced the establishment of several key initiatives in Brazil. These include the Luckin Brazil Growers Support Center, a High-Quality Coffee Plantation, and the opening of its Brazilian Office. These developments aim to enhance Luckin Coffee’s quality control across its supply chain and support sustainable coffee production practices. By fostering relationships with Brazilian coffee growers, the company seeks to ensure a consistent supply of premium beans for its products.

Luckin Coffee has already made significant strides in cultural and trade engagement with Brazil. In 2022, the company committed to importing 45,000 tons of coffee beans over three years. Earlier this year, it co-hosted the Luckin Coffee Brazil Coffee Culture Festival, launched Brazil-themed coffee stores, and inaugurated the Luckin Brazilian Coffee Museum to celebrate the rich heritage of Brazilian coffee.

Opportunities in China’s booming coffee market

China’s coffee consumption has surged in recent years, creating lucrative opportunities for companies like Luckin Coffee to expand their market share. By leveraging its relationship with Brazil, one of the world’s largest coffee producers, Luckin Coffee has positioned itself as a key player in shaping the global coffee trade.

Industry analysts view this deal as a strategic move to meet the growing demand for high-quality coffee in China, where the market is projected to grow significantly over the next decade. The collaboration also aligns with broader efforts to establish sustainable and resilient global supply chains, benefiting stakeholders in both nations.

A vision for the future

Luckin Coffee’s ambitious plans go beyond simply meeting consumer demand. The company is working toward building a world-class supply chain system that integrates premium global resources. This long-term vision includes promoting sustainable practices, innovating new coffee products, and contributing to the growth of the global coffee industry.

While Luckin Coffee focuses on its goal of becoming a century-old brand, it remains committed to supporting socio-economic development in its partner regions. This latest deal with Brazil is a step toward achieving that vision while reinforcing its position as a leader in the Chinese and global coffee markets.