China’s fastest-growing coffee chain, Luckin Coffee (Nasdaq: LK), signed a Memorandum of Understanding (MoU) with Kuwaiti food company Americana K.S.C.C. (Americana Group), the largest integrated food product company in the Middle East, on July 22. The two companies plan to establish a joint venture in order to launch a new retail coffee business in the Greater Middle East and India.
It only took 18 months for Luckin to be listed on the Nasdaq. The coffee chain is known for its technology-driven and fast-growing new retail business model. The coffee chain has fundamentally changed the transaction structure and user experience of China’s coffee industry. Americana has extensive experience in the food industry in the Greater Middle East, having been a pioneer of restaurant operations in the 1960’s. Alongside both Chinese and Arab government officials, Luckin’s founder and CEO Jenny Qian Zhiya and Americana Group CEO Kesri Kapur signed the MoU in Beijing.
Both parties agree that the collaboration will revolutionize the F&B retail industry in the greater Middle East and India, regions that provide promising prospects for new retail growth and expansion. Through this cooperation, luckin coffee will bring its leading technology and retail model from China to the world. Together with Americana, luckin will contribute to the rapid rise of new retail industries in the greater Middle East and India, while offering superior products, experiences, and services to consumers in the two regions.
Americana Group is one of the largest and most successful organizations in the Middle East & North Africa (MENA) with capabilities spanning manufacturing, distribution, and restaurant operations. Founded in Kuwait in 1964, Americana was the first to introduce the concept of Quick Service Restaurants (QSR) to the Middle East in the 60’s. The group, with its two divisions, operates 1900 restaurants in 13 markets and 25 food production sites across the UAE, Saudi Arabia, Kuwait, and Egypt, offering the safest, most reliable and best quality food to consumers in over 20 markets within the MENA region and beyond.
Luckin coffee (Nasdaq: LK) is headquartered in Xiamen, China, and landed on the Nasdaq in May 2019. To date, Luckin operates over 3,000 stores across 40 cities in China. The company plans to open more than 4,500 stores by the end of 2019, which would make it China’s largest coffee chain. It aims to build 10,000 stores by the end of 2021. Last December, Luckin’s Coffee beans won a gold medal at the 2018 IIAC International Coffee Tasting Competition in Milan, Italy. Luckin is dedicated to providing customers with high quality, affordable, and convenient products by partnering with the top 10% of industry suppliers.
(Top photo from Flickr, the rest is from Luckin)