By Stephen Nakrosis
Yum China Holdings Inc. /zigman2/quotes/208495167/composite YUMC -1.43% and Luigi Lavazza S.p.A. on Wednesday said they plan to open 1,000 new Lavazza cafes in China by 2025.
Through their existing joint venture, the companies will invest $200 million to fund future growth, they said.
The companies also said the joint venture is expected to be Lavazza’s exclusive distributor in mainland China.
The joint venture’s first Lavazza flagship store, the first store outside of Italy, opened in Shanghai in 2020. Since then, 20 stores have opened in China, the companies said.
The next phase of the expansion will see the joint venture “increase the density of Lavazza cafe network in higher tier cities with a variety of store formats for a wider range of occasions.” The joint venture will also market, sell and distribute Lavazza’s retail products in mainland China, the companies said.