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Starbucks teams with Alibaba to expand through China

August 3, 2018

Starbucks Coffee Company and Alibaba Group Holding have partnered to create Starbucks Delivery Kitchens for delivery order fulfillment and personalized online Starbucks Experience for Chinese customers, according to a company press release.

"Our transformational partnership with Alibaba will reshape modern retail, and represents a significant milestone in our efforts to exceed the expectations of Chinese consumers," Kevin Johnson, president and chief executive officer, Starbucks Coffee Company, said in the release. "Starbucks China is one to watch, and I have full confidence in the team that will bring the new innovation behind the Starbucks Experience to life."

Daniel Zhang, CEO of the Alibaba Group, said the company is thrilled to expand its existing partnership with Starbucks by leveraging its "cutting-edge New Retail infrastructure and digital power to enable an unprecedented experience for consumers. This partnership is again a testament to the success of our New Retail strategy."

Starbucks and Ele.me collaborated to develop a customized delivery infrastructure, creating a tailored order-to-delivery Starbucks program, according to the release. In addition, Starbucks will partner with Hema supermarkets to be the first retail brand to establish dedicated Starbucks Delivery Kitchens within their locations that will utilize Hema's distinct fulfillment and delivery capabilities to complement the delivery of handcrafted Starbucks coffee and tea beverages offered through existing Starbucks stores. 

Starbucks will open the kitchens in selected Hema supermarkets in Shanghai and Hangzhou as soon as September 2018, with plans to expand its presence to other cities over time.