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The Chinese coffee chain Cotti Coffee opened its first Belgian location in Brussels this week, right across from the European Commission buildings. In true Chinese style, the chain distinguishes itself as a price-breaker and through rapid expansion.
Vertical integration cuts costs
The chain aims to stand out with remarkably low prices: customers pay €0.99 for an espresso and €1.99 for an Americano. That is, if they download the app and register. For non-traditional coffee drinkers, and especially young people, the menu also features fruit-infused coffees with mango, pomelo, or apple. The chain also sells fruit tea and, of course, the popular matcha.
According to Cotti Coffee, the chain can offer such low prices thanks to strong vertical integration. “Most ingredients are produced in our own factories in China. We also have our own supply chain, sourcing directly from coffee farmers. So costs are very low, including for our raw materials,” Wang Xiao, head of Benelux operations at Cotti Coffee, told VRT News.
The company also owns its own coffee plantation in Indonesia. In this way, the chain is trying to reduce its dependence on external suppliers at a time when global coffee prices are fluctuating sharply.
China as a coffee powerhouse
Cotti Coffee is considered one of the fastest-growing coffee chains in the world. According to the company, it already has some 18,000 outlets, mainly in China, but also in France and Germany. It’s all part of China’s global expansion: the country aims to become a major player even in the coffee sector.
“Now is an excellent time,” says Wang Xiao. “China’s global influence is becoming increasingly important. I hope that over the next five years we’ll have more stores and influence in Europe. And that we can bring even more great products to Europeans.”
The opening in Brussels is therefore just the beginning. In the coming months, the chain plans to open five more Belgian locations. There will be a second Brussels store near the Grand Place, and two locations in Antwerp, one in Ghent, and one in Namur.
