In an unprecedented buying spree, Chinese coffee giant Luckin Coffee is committing to purchasing 240,000 tons of green coffee from Brazil between 2025 and 2029.
Negotiated by the Brazilian Trade and Investment Promotion Agency (ApexBrasil), the new memorandum of understanding (MoU) with Luckin follows Luckin’s initial commitment for the 2024 year of 120,000 tons of coffee.
The new agreement, which would give Luckin a steady supply of Brazilian coffees through the end of the decade — the equivalent of 4 million 60-kilo sacks — carries an estimated value of approximately US$2.5 billion, according to ApexBrasil.
Neither Apex nor Luckin have publicly disclosed which companies may be involved in the production or trade of the green coffee, nor have they provided information regarding the coffee quality or species (arabica or robusta).
Brazil remains the largest coffee-producing country in the world by a wide margin. The latest USFA Foreign Agriculture Service report for Brazil estimates that the country will produce approximately 66 million 60-kilo bags of coffee in the 2024/25 market year, while exporting approximately 44 million bags.
Luckin Coffee, meanwhile, continues to grow at a breakneck pace, opening more than 1,3000 retail locations in the third quarter of this year alone. The company operates approximately 22,000 locations in China, as well as the China’s largest roasting factory.
Luckin Coffee recently announced intention to expand into the United States market.
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