Manner, a boutique coffee brand, recently raised a new round of financing with hundreds of millions of US$, exclusive invested by Longzhu Capital; this is the venture capital arm of Chinese internet giant Meituan Dianping. It is already the third round of financing that Manner Coffee has secured within the last 6 months.
Manner Coffee was founded by a married couple, Mr. Han Yulong and Mrs. Lujian Xia, in Shanghai in 2015. Manner focuses on a small selection of high-quality, reasonably priced beverages and provides discounts if customers bring their own cups. The founder, Mr. Han Yulong, shares that he aims to promote coffee culture in China, making coffee a daily drink for Chinese consumers, just like soy milk. The brand began to expand nationwide in 2019 and has successively entered Suzhou, Beijing, Chengdu, Shenzhen, and other cities with more than 150 outlets in total, where Shanghai has more than 90 locations.
Good coffee doesn’t mean being expensive. For example, the price of classic Manner coffee is between 10 and 25 RMB (US$1.57-US$3.92), of which espresso and americano are 10 RMB (US$1.57) and 15 RMB (US$2.35) respectively. Latte, Cappuccino, and Mocha vary depending on specifications, and the price for one cup of coffee ranges from 20-25 RMB (US$3.14-US$3.92). Manner coffee prices are cheaper than Starbucks and Costa Coffee, keeping the reputation of being a high-quality brand.
It is obvious that the China coffee market has huge potential with steady growth. Coffee’s popularity in China is not only driven by western brands, but also by the Chinese young generation, who are seeking new experiences of drinking coffee. More emerging coffee brands join the market and attract also capital investment firms. In our previous post, we have mentioned the startup Coffee Box that secured millions in financing. Another boutique coffee brand, Algebraist Coffee, secured Series A funding of tens of millions of RMB. Such extensive growth is not limited to start-ups, Tim Hortons, a prominent Canadian coffee and donut chain, raised funding in China also, to open 1,500 stores across China in the next few years.