openPR Logo
Press release

Bernstein Private Wealth Management releases its Coffee industry branch report

08-22-2024 03:28 PM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Getnews

/ PR Agency: SHENZHEN HMEDIUM INFORMATION TECHNOLOGY CO.,LTD
Bernstein Private Wealth Management releases its Coffee

At the end of July, one of the world's leading coffee companies reported its fiscal third quarter, with net revenue fell 1% from a year earlier to $9.11 billion. Danilo Gargiullo (Danilo Gargiulo), a senior analyst at Bernstein, wrote in a report: "Returning from early November to the inability to prevent the loss of traffic, and the deterioration of China's macro and competitive environment, may mean long-term challenges and no hope." In particular, the decline in revenue in China was even more significant, down 11% from a year earlier. This trend is not limited to the Chinese market, the brand's sales in Japan, Asia Pacific, Europe, the Middle East, Africa, Latin America and the Caribbean are also declining, while the Chinese market is the most obvious decline. In the challenging economic environment, the decline in performance has undoubtedly brought considerable shock to the market. Some economic analysts pointed out that the decline in performance may reflect some uncertainties in the global economic situation, especially in China. However, taking the Chinese market as an example for in-depth analysis, people can find the multiple business logic behind the plight of the multinational coffee industry.

The rise of local Chinese brands

Foreign brand coffee is no longer the only option for Chinese coffee lovers. With the rapid expansion of China's coffee market, more and more Chinese local coffee brands are also making efforts. Luckin, a well-known Chinese brand, once launched it with Moutai and sold 5.42 million cups on the first day, with sales exceeding 100 million yuan. A recent industry report highlighted that China's per capita coffee consumption has soared from six cups in 2016 to 16.74 cups in 2023. There is no doubt that there are many people who love coffee, but in choosing coffee brands, some foreign brands that are quite well-known in China are not the only choice for Chinese people.

Competition from emerging foreign brands

With the rise of coffee drinking habit of Chinese people in recent years, some emerging and foreign coffee has gained a strong development momentum in China, which to some extent has seized the market of some old foreign coffee. Vietnamese coffee chain Trung Nguyen Legend has announced further expansion in China, with a total of 12, according to global Coffee Report. In the first half of 2024, Piye Coffee had a strong performance in China, with sales up 6.4 percent year on year, and now has more than 200 stores in China, the World Coffee Portal reported. The introduction of so many foreign companies reflects China's inclusiveness of diversification.

The "Price war" has squeezed profit margins

Some Chinese financial bloggers said the decline in sales of the established coffee giants was related to their lack of participation in a price war in China. But in fact, the coffee giant just didn't explain the "price war" and once launched a "buy one, get one free" promotion to boost sales. In the short term, it solves the problem of low sales, but because the cost does not reduced, in fact, it is equivalent to greatly reducing the profit margin, and does not fundamentally solve the problem of declining performance. According to Qianzhan Research Institute, China's coffee market will exceed 300 billion yuan by 2024. Currently, the coffee industry generates around 10 bn, with projected annual growth of 9.21% between 2021 and 2025. Therefore, in China's high-growth demand market, some brands are declining sales, which has little to do with the Chinese people's insufficient spending power.

Old-brand coffee product innovation lags behind

On their own, in the increasingly crowded market, increasingly mature consumers also need special reasons to buy. In the final analysis, the imbalance between the growth of public diversified demand and the relative lag of brand reform and upgrading also leads to the decline of brand attractiveness. Recently, the founders of some coffee brands also pointed out that companies should use differentiation to consolidate their market position, optimize their services, and strengthen their product innovation capabilities, rather than just focusing on one sales data. It is also time for established coffee to find problems from their own perspective.

In the earnings report, global same-store sales fell 3% in the third quarter, the second straight quarter, with U. S. same-store sales down 2%.weakness in the Middle East, South Asia and parts of Europe.

However, it is worth noting that, according to China's data released by the National Bureau of Statistics, China's GDP reached 61.7 trillion yuan in the first half of the year, up 5.0% year on year. This shows that China's economy still maintains a steady growth trend. From this perspective, coffee earnings are not very relevant to the economy.
Media Contact
Company Name: Jiangsu Century Security Information Technology Co., Ltd.
Contact Person: Jia Liu
Email: Send Email [http://www.universalpressrelease.com/?pr=bernstein-private-wealth-management-releases-its-coffee-industry-branch-report]
City: SuZhou
Country: China
Website: http://www.jssjxa.com



This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Bernstein Private Wealth Management releases its Coffee industry branch report here

News-ID: 3631720 • Views:

More Releases from Getnews

Globely Launches to Empower Marketing Agencies with AI-Driven Growth and Future-Proof Data Solutions
Globely Launches to Empower Marketing Agencies with AI-Driven Growth and Future- …
Today marks the official market debut of Globely, a transformative platform designed to help marketing agencies unlock enterprise-grade results without the burden of building costly in-house tech stacks. Engineered specifically for agency partners, Globely streamlines campaign execution, enhances performance through AI automation, and provides data infrastructure to help clients thrive in an evolving digital landscape shaped by AI assistants and voice search. As marketers face rising pressure to deliver faster, more
Light IT Up: Linktour Automotive Officially Announces Global Debut with Innovative Lightweight EV Series in Rome
Light IT Up: Linktour Automotive Officially Announces Global Debut with Innovati …
Rome, Italy - After IAA Mobility, Linktour Automotive took another step forward in brightening the future of urban mobility with the official product launch of its L6e and L7e electric vehicles in Rome today. The launch event celebrated the theme "Light IT Up," which reflects the brand's advanced lightweight design philosophy and mission to deliver lighter, smarter, and more sustainable mobility solutions to city travel. Linktour's new lineup includes five
State of European Business Technology 2025: How AI is empowering the Support Functions from
State of European Business Technology 2025: How AI is empowering the Support Fun …
Image: https://www.globalnewslines.com/uploads/2025/11/1763018087.jpg Finch Capital [https://finchcapital.com/]'s annual State of European Business Technology report [https://finchcapital.com/research] spotlights a major theme: Europe's AI Rewiring of Support Functions (i.e. HR, Finance, Ops, Legal and IT). The report reveals a decisive shift in how modern companies build and scale efficiently, harnessing AI to unlock deeper insights and significant performance gains. As growth gives way to profitability, businesses are increasingly focused on improving margins and productivity through AI-driven
Perfect Solutions for Seniors Continues Commitment to Skilled Home Health Care Services in Sarasota, FL
Perfect Solutions for Seniors Continues Commitment to Skilled Home Health Care S …
Image: https://www.globalnewslines.com/uploads/2025/11/1763053761.jpg Every senior deserves to feel safe, heard, and truly at home. Perfect Solutions for Seniors Continues Commitment to Skilled Home Health Care Services in Sarasota, FL so families can trust their loved ones are in caring, capable hands. Perfect Solutions for Seniors is reaffirming its commitment to providing essential skilled home health care services in Sarasota, FL. As the local senior population grows, the agency is ensuring families can access

All 5 Releases


More Releases for China

China fund establishment, China fund management,china investment management
Pandacu China is a leading financial institution that specializes in providing fund establishment and management services for domestic and international investors looking to invest in China. The company was founded in 2015 by a team of experienced finance professionals with a deep understanding of the Chinese market and a strong network of contacts in the investment industry. https://boomingfaucet.com/ China Fund Establishment Consultation E-mail:nolan@pandacuads.com Investing in China can be a complex and challenging process, and
China Finance Advisor, China Debt Finance Corporation,China Investment Corporati …
Investment bank is a financial institution that helps companies and governments raise capital by underwriting and issuing securities, and also provides advice on mergers and acquisitions, strategic investments, and other financial matters. Investment banks typically have a team of professionals with expertise in various areas such as corporate finance, securities underwriting, sales and trading, and market research. http://pandacuads.com/ China Investment Corporation Email:nolan@pandacuads.com Some of the main services provided by investment banks include: Underwriting: Investment banks
China Investment Bank, China Investment Consultant, China Investment Corporation …
Pandacu is a company that specializes in cross-border investment in China. The company was founded in china and has since grown to become one of the leading cross-border investment firms in China. Pandacu offers a wide range of services to its clients, including investment advisory, market research, due diligence, and post-investment support. http://pandacuads.com/ Investment banking consultant Email:nolan@pandacuads.com Cross-border investment in China can be a complex and challenging process, as the country has a unique
china construction company,china engineering company,china major bridge engineer …
List of Top 500 Chinese Construction Enterprises ranking https://gzwatches.cn/ Free engineering construction consultation Email:nolan@wholsale9.com Company Name province 1 China State Construction Corporation Limited Beijing 2 China Railway Corporation Limited Beijing 3 China Railway Construction Corporation Limited Beijing 4 Shanghai Weimengsi Construction Engineering Co., Ltd. Shanghai 5 China Communications Construction Group Co., Ltd. Beijing 6 China Power Construction Corporation Limited Beijing 7 China Energy Construction Group Co., Ltd. Beijing 8 Shanghai Construction Engineering Group Co., Ltd. Shanghai 9 Jiangsu Zhongnan Construction Industry Group Co., Ltd. Jiangsu 10 China Gezhouba Group Co., Ltd. Hubei 11 China National Chemical Engineering Co., Ltd. Beijing 12 Sinoma Group Co., Ltd. Beijing 13 Guangxi Construction Engineering Group Co., Ltd. Guangxi 14 Shanghai Urban
Forehead Thermometer Market Analysis (2019- 2025)| Microlife (China), Radiant (C …
This research study is one of the most detailed and accurate ones that solely focus on the global Forehead Thermometer market. It sheds light on critical factors that impact the growth of the global Forehead Thermometer market on several fronts. Market participants can use the report to gain a sound understanding of the competitive landscape and strategies adopted by leading players of the global Forehead Thermometer market. The authors of
Global Color Steel Tile Market 2017 - South China, East China, Southwest China, …
Color Steel Tile Market Research Report A market study based on the " Color Steel Tile Market " across the globe, recently added to the repository of Market Research, is titled ‘Global Color Steel Tile Market 2017’. The research report analyses the historical as well as present performance of the worldwide Color Steel Tile industry, and makes predictions on the future status of Color Steel Tile market on the basis