Aiming for 1,000 Lavazza cafés in China by 2025 through the existing joint venture
SHANGHAI, Sept. 22, 2021 /PRNewswire/ — Yum China Holdings, Inc. (the "Company" or "Yum China", NYSE: YUMC and HKEX: 9987) and Luigi Lavazza S.p.A. ("Lavazza" or "Lavazza Group") announced that they plan to accelerate the expansion of the store network of Lavazza cafés in China through the existing joint venture, aiming to open 1,000 stores by 2025. Together they will inject $200 million initially into the joint venture to fund its future growth. In addition, the joint venture is expected to be Lavazza's exclusive distributor in mainland China to introduce more products from Lavazza's global portfolio.
In early 2020, Yum China – the largest restaurant company in China in terms of 2020 system sales, and Lavazza Group – the world-renowned family-owned Italian coffee company – formed a joint venture to explore and develop Lavazza café concept in China. The joint venture is owned by Yum China and Lavazza with a stake of 65% and 35%, respectively. The first Lavazza flagship store in Shanghai, the first store outside of Italy, opened its doors to customers in April 2020. Lavazza has since grown to over 20 stores in China across Shanghai, Hangzhou, Beijing and Guangzhou. Meanwhile, digital channels play an important role in Lavazza's initial success. Sales to Lavazza members accounted for approximately 50% of total sales for the first half of 2021.
"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. We are excited about what the future holds for this iconic Italian brand," said Joey Wat, CEO of Yum China. "Leveraging Yum China's world-class supply chain, digital capabilities and in depth knowledge of Chinese consumers, we look forward to bringing Lavazza's premium and authentic Italian coffee experience and products to even more consumers in China."
"The potential for coffee in China is vast; there is a lot of unexplored white space. As the largest restaurant operator in China, Yum China is the best partner to further grow the Lavazza brand in this market given its deep understanding of local consumers and market dynamics. Likewise, we believe Lavazza is the perfect premium brand for Yum China to achieve its coffee aspirations, bringing outstanding quality products and in-depth expertise of the coffee sector, nurtured over the 126 years of our history," said Antonio Baravalle, CEO of Lavazza Group. "The strengths contributed by each partner create a solid foundation for the success of our joint venture, and we are excited to collaborate with Yum China to develop Lavazza into a leading coffee brand in China."
The next phase of Lavazza store expansion in China is to increase the density of Lavazza café network in higher tier cities with a variety of store formats for a wider range of occasions. With 22 stores as of August 31, 2021, the joint venture plans to more than double that by the end of 2021. The joint venture will further enhance capabilities to drive efficiencies, in particular in-store operation, branding and marketing efforts.
In addition, the joint venture will market, sell, and distribute Lavazza's retail products in mainland China, including coffee beans, ground coffee and coffee capsules. Leveraging Yum China's digital capabilities, operational expertise and deep China market knowledge, and Lavazza's top-quality products, the joint venture aims to further grow the Lavazza brand in China.
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as "expect," "expectation," "believe," "anticipate," "may," "could," "intend," "belief," "aim," "plan," "estimate," "target," "predict," "project," "likely," "will," "continue," "should," "forecast," "outlook," "look forward to" or similar terminology. These statements are based on current estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable under the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct. Forward-looking statements are not guarantees of performance and are inherently subject to known and unknown risks and uncertainties that are difficult to predict and could cause our actual results or events to differ materially from those indicated by those statements. We cannot assure you that any of our expectations, estimates or assumptions will be achieved. The forward-looking statements included in this press release are only made as of the date of this press release, and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. You should consult our filings with the Securities and Exchange Commission (including the information set forth under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations " in our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q) for additional detail about factors that could affect our financial and other results.
About Yum China Holdings, Inc.
Yum China Holdings, Inc. is a licensee of Yum! Brands in mainland China. It has exclusive rights in mainland China to KFC, China's leading quick-service restaurant brand, Pizza Hut, the leading casual dining restaurant brand in China, and Taco Bell, a California-based restaurant chain serving innovative Mexican-inspired food. Yum China also owns the Little Sheep, Huang Ji Huang, East Dawning and COFFii & JOY concepts outright. In addition, Yum China has partnered with Lavazza to explore and develop the Lavazza café concept in China. The Company had 11,023 restaurants in over 1,500 cities at the end of June 2021. Yum China ranked # 363 on the Fortune 500 list and was named to TIME100 Most Influential Companies list in 2021. Yum China has been named the Industry Leader for the Restaurant & Leisure Facilities Industry in the 2020 Dow Jones Sustainability Indices. In 2021, Yum China was named to the Bloomberg Gender-Equality Index and was certified as a Top Employer 2021 in China by the Top Employers Institute, both for the third consecutive year. For more information, please visit http://ir.yumchina.com.
About Lavazza Group
Established in 1895 in Turin by Luigi Lavazza, the Lavazza Group is a world-renowned Italian manufacturer of coffee products. It has been owned by the Lavazza family for four generations. Among the world's most important roasters, Lavazza currently operates in more than 140 countries through subsidiaries and distributors, with 70% of revenues coming from markets outside of Italy. Lavazza employs a total of about 4,200 people with a turnover of € 2.085 billion in 2020. More information at: http://lavazzagroup.com.
View original content to download multimedia:https://www.prnewswire.com/news-releases/yum-china-and-lavazza-plan-to-accelerate-expansion-of-lavazza-cafes-in-china-and-extend-partnership-to-product-distribution-301382821.html
SOURCE Yum China Holdings, Inc.
Shares of Peloton Interactive (NASDAQ: PTON) were falling 6% in midday trading Wednesday on no specific news related to the connected fitness equipment maker, but following a weeks-long slide in its stock. Peloton stock is now down 45% from its 52-week high and off more than 33% year to date. Doubts persist about the ability of Peloton to continue growing in a post-pandemic world.
These stocks are all about the big payoff.
FedEx sends shockwaves to bullish investors with its commentary on the jobs market.
Ines Ferre breaks down some of Wednesday’s early stock movers, including: Facebook lower after warning Apple’s privacy changes could impact Q3 results, Workhorse under pressure after halting electric van deliveries, and Netflix gaining after a price target boost at Stifel.
Shares of semiconductor manufacturer Nvidia (NASDAQ: NVDA) — a supplier of chips for video gaming, cryptocurrency mining, artificial intelligence, and other markets — had jumped a solid 3.3% in Wednesday trading after CNBC reported last night that Goldman Sachs is bullish on U.S. semiconductor stocks. Tech market intelligence source International Data Corporation has just released its forecast for the semiconductor industry over the next two years. Mobile phones, notebooks, servers, automotive, smart-home devices, gaming, wearables, and Wi-Fi access are all growth markets for semiconductors, IDC says.
It’s time to start buying this September pullback in the stock market. Lehman Brothers blew up in 2008 because the U.S. government failed to realize it was too big to fail. Lehman had sold a lot of flawed financial products around the world, so when it blew up, it created systemic problems.
Nio shares have taken a hit from macro news recently, but some company-specific developments may be pushing it higher today.
Head of U.S. equity and quantitative strategy at Bank of America, Savita Subramanian offers her best strategy for navigating topsy-turvy financial markets as the U.S. economy attempts to claim a sustained recovery from COVID-19.
Most of what gets published in the financial media separates investors and companies into two camps: Value and growth. But that doesn't make any sense. It was Warren Buffett who said, "Price is what you pay.
If you buy high-quality companies and hang onto them for long periods of time, your chances of growing your initial investment by leaps and bounds goes up significantly. What's more, Novavax's vaccine development platform should allow it to quickly tackle new variants and develop potential combination treatments in the future.
When stocks hit bottom, investors should take note. Stock prices fall for a reason, but those reasons don’t always mean that the stock is unsound. In fact, some fundamentally strong equities can fall to rock bottom prices – and when that happens, it’s a buying opportunity. Wall Street’s analysts are frequently on the alert for these cases, as they generally offer investors some of the best upside potentials in the market. Using TipRanks’ database, we pinpointed three stocks whose price has falle
An analyst's positive note on the company's future adds to the bullishness coming back to its shares.
History has shown that a market sell-off is a great time to add quality companies to your portfolio. At a market capitalization of $300 billion, Adobe is one of the largest software companies in the world. The company breaks its results into three categories.
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We have processed the filings of the more than 873 world-class investment firms that we track and now have access to the collective wisdom contained in […]
More than 100 large-cap stocks are at least 20% below their 52-week highs. But analysts love Micron Technology, Activision Blizzard and JD.com, among others.
If ABBV closes above 110 on the expiration date, the shares will be called away at 110, leaving the trader with a total gains of $555.
This augmented reality company generated more revenue in the first half of 2021 than in all of 2019.
(Bloomberg) — China Evergrande Group injected a fresh dose of uncertainty into financial markets on Wednesday, issuing a vaguely worded statement on a bond interest payment that left analysts grasping for details.Most Read from BloombergThe Global Housing Market Is Broken, and It’s Dividing Entire CountriesIstanbul Turns Taps on Old Fountains, Joining Global Push for Free DrinksIn Paris, the Wrapped Arc de Triomphe Is a Polarizing PackageIs There Room for E-Scooters in New York City?How the Chi
Canadian marijuana stocks have fallen from their February highs. But one player in the industry got a lot bigger after a merger deal.
The security software provider reported a better-than-expected loss and topped quarterly revenue estimates.
Aiming for 1,000 Lavazza cafés in China by 2025 through the existing joint venture