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.
Forward-Looking Statements
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.
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SOURCE Yum China Holdings, Inc.