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    Half Tones

    Starbucks Challenger Luckin Splits Its Coffee and Tea Businesses

    Sep 04, 2019

    After a few fleeting months together, Luckin’s tea and coffee operations have agreed to go their separate ways.

    The Chinese beverage giant announced Tuesday that it had split Luckin Tea — Xiaolu Cha — into a separate brand just five months after its launch in April. In a separate statement, the company said it will open tea stores nationwide offering over 30 varieties of tea, launch a separate app and mini program for online orders, and introduce a “new retail partner model” that will allow prospective business owners to join the chain without having to pay a franchising fee.

    Launched in May 2018, Luckin Coffee, China’s homegrown Starbucks rival, has opened 3,000 stores in 40 cities and claims to have 18 million customers, according to its website. In May, Luckin listed on the Nasdaq Stock Market in the U.S. with a market valuation of over $6 billion. However, the company said last month that its net losses for the second quarter of 2019 had reached 681.3 million yuan ($99.2 million), compared with 333 million yuan for the same period the year prior. (Images: @小鹿茶luckintea on Weibo & VCG)