Coffee trader NKG expands into China to tap surging demand
By Marcelo Teixeira
NEW YORK, Aug 8 (Reuters) -German coffee trader Neumann Kaffee Gruppe (NKG), one of the world's largest coffee merchants, said on Thursday it has opened a subsidiary in China, looking to meet surging demand for the beans in Asia's fastest growing coffee market.
The company's new Chinese operation is headquartered in downtown Shanghai, where it has also built a cupping lab for coffee quality control, it said in a statement.
NGK said it has set up coffee warehouses and distribution operations at the bonded areas of Kunshan and Yangshan.
"This initiative aligns with the rapid growth in coffee consumption in China, driven by an increasing demand for high-quality coffee products," the company said.
Coffee demand has been growing by double digits in China recently, with a surge of interest for the beverage particularly among young Chinese professionals, who are switching away from the centuries-old tradition of tea drinking in the country.
The number of coffee shops increased by more than 50% in China last year as chains such as Luckin Coffee LC0Ay.MU and Starbucks SBUX.O opened hundreds of new outlets.
Chinese coffee imports from top grower Brazil increased by more than 180% last year, Brazilian exporters association Cecafe said.
Reporting by Marcelo Teixeira; editing by Jonathan Oatis
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