
Photos: Ray Ally
Starbucks is one of the most popular brands in the mainland, despite the fact that China does not have a history of coffee culture. However, as the saying goes ‘due to popular demand’, the brand is now selling its own Starbucks branded Chinese tea. The vice president for market, product, and communications in Starbucks Greater China, Huang Limin, said:
“The launch of tea drinks is in response to the demands of local consumers. After a long period of market investigation, Starbucks decided to first launch the nine kinds of tea products and it expects to expand its tea drinks product line in the future.”
An American brand selling Chinese tea, seems at first a slightly bizarre idea. Especially since China invented the drink and its history goes back several thousand years. Chinese tea culture is part of its society and there are already over 60,000 tea houses in China. This makes the concept particularly challenging for this upstart, which only opened its first China store in 1999.
Today Starbucks has over 700 stores in greater China, with over 360 stores on the mainland. So although they don’t have a long history of making tea, they do have the Starbucks experience. This ‘third place’ in China, is their unique and aspirational ingredient that they can combine with the tea drinking experience.
Starbucks has introduced nine teas; two handmade teas, four original leaf teas and three original leaf Chinese style teas. White Mu Dan Tea, Oriental Beauty Oolong Tea and Bi Luo Chun Green Tea, each have special health benefits and come in triangular shape teabags.

Drinking Starbucks coffee is still seen as fashionable among China’s urban young, in tier one cities like Beijing and Shanghai. However in less cosmopolitan places, tea is often the preferred drink of choice. Regardless of location, the most important factor is being seen in Starbucks, or carrying its familiar cup on the street.
As the concept of selling Chinese tea is still new, it will take a while for the idea to fully brew. However it is a smart move for Starbucks for two reasons. Firstly, it will widen its appeal to women looking for a healthy alternative to coffee. And secondly, it will help localise the brand as it expands further into third and fourth tier cities across China.
I tried the White Mu Dan Tea, which is effective at ‘reducing fever and cooling down the summer heat’. I liked the triangular teabag, which look cool and the tea tasted different and refreshing. It also made a nice change for once in the morning. However, I still need my caffeine to kick start my day and that for now, only coffee can give me.
{ 2 comments… read them below or add one }
Nice blog!
Now I want to go try out the different teas…
Starbucks China has some smart business men running the show.
Also agree with the coffee statement.
I agree this is a good move for Starbucks, but probably wasn’t an easy decision. Have posted a point of view (http://is.gd/bJBUC) on what other Western brands can learn from this move with regards to the subtle balancing act of localizing without diluting the core idea of the brand. Let me know what you think.