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COSTA COFFEE SET TO MOVE INTO CHINA
20/06/2006
Costa, the UK’s fastest growing coffee chain and part of Whitbread PLC, today announced a deal that will see the coffee brand expand into China. Whitbread PLC has agreed a Joint Venture agreement with Chinese partner Yueda Group to launch the Costa brand in Shanghai and Eastern China. The first Costa store is scheduled to open in early 2007 and the aim is to open over 300 Costa stores throughout China in the next few years. The Costa team based in Shanghai will work closely with the Yueda Group to develop the Costa product for the Chinese marketplace. Coffee will be supplied from Costa’s Roastery in Central London and the stores will also serve the traditional Costa menu of food items. Alan Parker, Chief Executive, Whitbread PLC commented: “China is a very attractive market making this a major deal for Costa. There is an established coffee culture and increasing interest in drinking coffee out of the home so there is consumer demand for the product. We will be exporting our unique coffee product and 35 years of Italian coffee heritage to China and are confident that it will be well received”. He continued: “The Yueda Group, headed by Founder and Chairman Mr Hu Youlin, have been tremendous in making this venture possible and I am confident that we have created a successful business model in what is one of the most dynamic economies in the world.” The expansion into China marks another significant step in fulfilling Costa’s strategy to become a global coffee brand. Costa already trades in fourteen countries including India, Ireland and a number of territories in the Middle East.
- Ends - For more information please contact
Dionne Parker, Head of Press, Whitbread
Tel: 01582 844346 / 07748 321557
Peter Hewer, Tulchan Communications
Tel: 0207 353 4200
Note to Editors:
Costa, founded by Italian brothers Sergio and Bruno Costa in 1971, Costa is the UK’s fastest growing retail brand. With over 450 stores in the UK and a further 100 stores overseas, Costa has enjoyed a remarkable period of growth since it opened its first store. Costa’s in-store baristas are coached in the art of coffee making at the company’s unique Costa Coffee College. The College is based at its own roastery in Lambeth, London - where Costa’s coffee beans are slow roasted using a traditional Italian method to give the smooth distinctive, Costa flavour.
As pioneers of café culture in the UK, Costa inspired the creation of popular and convenient concessions stores in locations such as Waterstones and Ottakars bookstores, and BAA outlets. A welcome respite for shoppers to relax, unwind and enjoy a revitalising cup of coffee crafted the Italian way. Whitbread PLC is the UK's leading hospitality company, managing market leading businesses in the hotels, restaurant and health and fitness sectors, including Premier Travel Inn, Brewers Fayre, Beefeater, Costa, T.G.I. Friday's and David Lloyd Leisure, and a strategic investment in Pizza Hut (UK). Whitbread's strategy is to create value for our shareholders by focusing investment and growing in expanding sectors of the hospitality industry, primarily in the UK but also in selected overseas markets. In the financial year to March 2, 2006, Whitbread generated pre-tax, pre-exceptional profit of £264.4m. Founded in 1742, the company is listed on the London Stock Exchange (as WTB.L) and is a member of the FTSE4Good indices. The Yueda Group was established in the 1970s and now has over 10,000 employees and total assets of £0.8 billion. It is one of the largest state owned enterprises in China and one of the top 20 largest companies in Jiangsu province. Yueda is a conglomerate with interests in industries ranging from machinery manufacture to retail interests. It has business bases in Beijing, Shanghai and several other cities in China.
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