Chinese coffee chain upstart Luckin Coffee has signed an agreement with Louis Dreyfus Company (LDC), a European food processing company, to sell Luckin Juice in China through a joint venture (JV).
Why it matters: Known as China’s Starbucks challenger, Luckin is expanding aggressively across product categories and overseas markets.
After adding snacks and fruit-based beverages, the Xiamen-based company announced plans this month to spin off its tea-based beverage line known as Xiaolu Tea, or “Fawn Tea” in English, as an independent operation.
The company has been growing at a breathless pace and is still loss-making.
Expansion to more product categories will add to financial pressures on the US-listed company.
The deal appears to have been in discussions for months.