Luckin Inks Deal Indonesia For Exclusive Access To Islands For Premium Ingredients – CoffeeTalk

Chinese coffee giant Luckin Coffee has signed a memorandum of understanding with the Banggai Islands Regency, Indonesia, to designate the region as the exclusive premium origin for coconut milk used in its signature Coconut Latte. The islands will be named “Luckin Exclusive Coconut Island.” Under the agreement, the Banggai Islands Regency grants Luckin Coffee and its partners exclusive rights to source coconuts from the region, with the company planning to procure approximately 1 million tons of coconut raw materials over the next five years.

This partnership reflects Luckin Coffee’s dedication to high-quality ingredients and reinforces its value of offering products directly from their authentic origins. As one of the world’s key coconut-producing regions, the Banggai Islands’ premium coconut resources will play a vital role in supporting Luckin Coffee’s supply chain.

Li Shan, senior director of Luckin Coffee’s supply chain center, noted that with Banggai Islands’ premium coconut resources, the company will further strengthen its high-quality supply chain. The company will also work with the Banggai Islands Regency to develop a systematic approach to coconut resource development, establishing agricultural centers in the region to boost coconut production while providing farmers with seedlings, fertilizers, and other resources to expand cultivation.

The agreement comes as China and Indonesia mark the 75th anniversary of diplomatic ties and Indonesia joins the BRICS group. Luckin Coffee aligns with China’s push for deeper multilateral trade cooperation, expanding its global high-quality supply chain and strengthening economic and cultural ties with top-sourcing regions worldwide.

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