Two Sessions First Propose "Cross-Border Supply Chain Layout," Luckin Coffee Leads the Way to "Link" the Global Market

The term “supply chain” was first included in the Government Work Report ten years ago and has since been endowed with deeper contemporary significance.

Since the first mention of “supply chain” in the 2016 Government Work Report, related expressions have continued to evolve: from “stabilize the chain” to “strengthen and supplement the chain,” and this year, for the first time, explicitly proposing “promoting high-quality development of smart supply chains” and “guiding the rational and orderly cross-border layout of industrial and supply chains.” The connotation of supply chains has been expanding continuously, with increasing capabilities, gradually becoming one of the core variables driving the reconstruction of industrial competitiveness.

In the context of policy evolution, a number of Chinese companies have taken the lead in exploration. Luckin Coffee is a typical example, responding to this proposition through practice, as the “chain” faces new opportunities in the next decade.

Behind this, from a cup of coffee to gradually building a global supply chain system, Luckin’s years of practice vividly reflect China’s supply chain development—from “ensuring stability” to “strengthening and optimizing,” from “domestic” to “global.”

Luckin’s Global Supply Chain “Puzzle”

From the end point to the source, the depth of a supply chain often determines the upper limit of a cup of coffee; meanwhile, the layout of a global supply chain defines a company’s competitive boundary.

By 2026, a railway special train named “Luckin” will carry 22 containers, totaling 682 tons of seasonal coffee beans from Yunnan, crossing 2,834 kilometers from Pu’er directly to Xiamen, Fujian. This transportation corridor connecting southwestern production areas with southeastern processing bases is regarded by industry insiders as a new artery for the industry, linking “a single bean” to “a cup of coffee.”

But Luckin’s supply chain “game” extends far beyond domestic borders.

In Indonesia, Luckin has established “Luckin Coffee’s dedicated coconut island,” planning to procure about 1 million tons of compliant coconut raw materials over the next five years, locking in core raw materials from the source. In Brazil, Luckin signed a memorandum of cooperation with the Brazil Export and Investment Promotion Agency, agreeing to purchase a total of 240,000 tons of coffee beans worth 10 billion RMB from 2025 to 2029.

As Brazilian Ambassador Gao Wang described, the rapidly growing coffee trade between China and Brazil is like a high-speed train, and Luckin Coffee is the “locomotive” of this “coffee high-speed rail.”

From Yunnan to Indonesia, Brazil, and other high-quality global production areas, Luckin continues to advance in building a global supply chain universe.

Domestic Infrastructure Supporting Global Connectivity

Behind the global layout is the strong support of domestic supply chain infrastructure.

Currently, Luckin has established and put into operation two major roasting bases in Pingnan, Fujian, and Kunshan, Jiangsu. The Qingdao Innovation Production Center and Xiamen Innovation Industrial Park are also accelerating construction. In the future, these four bases will form a self-processing roasting supply network with an annual capacity of 155,000 tons, becoming “super factories” that connect global coffee bean resources with localized processing.

Upstream, Luckin has built a fresh coffee fruit processing factory in Baoshan, Yunnan, with an annual capacity of 5,000 tons, directly benefiting over 20,000 coffee farmers, achieving autonomous control over the critical link from “fruit” to “bean.”

Downstream, by the end of 2025, Luckin’s global store count will reach 31,048. Through its extensive terminal network, it connects the entire chain worldwide.

This “global source + local processing + terminal network” supply chain system enables Luckin to achieve full control from a single bean to a cup of coffee.

Notably, according to the 2025 “Deep Research on Luckin Coffee” published by Guojin Securities, Luckin’s logistics costs account for only 4.2% of revenue, far below the global coffee industry average of about 8%. Luckin’s inherent digital intelligence gene ensures that its supply chain does not slow down as the chain lengthens; instead, driven by digital and data collaboration, it operates faster, more accurately, and even more cost-efficiently.

Moreover, beyond rapid scale expansion and continuous efficiency improvements, Luckin embeds sustainability concepts throughout its supply chain lifecycle, exploring a more resilient balance between economic benefits and ecological responsibility.

Supply chains are value chains, innovation chains, and ecological chains; they are the channels connecting production and sales, and the core carriers of efficiency, innovation, and sustainability. From coffee fruit to coffee beans, crossing mountains and seas to reach the cup, what drives this process is a facet of China’s supply chain advancing toward higher-quality development.

Chinese food industry analyst Zhu Danpeng stated: “Luckin’s cross-border supply chain layout not only ensures quality stability in both domestic and global markets but also reshapes China’s brand discourse power in the global coffee industry value chain. Through global supply chain deployment, Luckin achieves a synergy of ‘brand effect + scale effect,’ which is also a strong practice aligned with the national strategy to ‘enhance the resilience of the industrial chain.’” When policies first proposed “guiding the rational and orderly cross-border layout of industrial and supply chains,” Luckin’s practice has already demonstrated that China’s ability to connect global resources through the supply chain is becoming a new competitive moat for Chinese companies participating in international competition.