MILAN – Chinese coffee chain Cotti Coffee is achieving results that are nothing short of impressive. Since opening its first store in Fuzhou, Fujian, in 2022, Cotti Coffee has experienced phenomenal growth, opening 5,000 stores across China in less than a year. In 2023, it began its international expansion, starting with neighbouring South Korea. With over 18,000 locations in 28 markets (including Europe), of which 16,485 are in China (as of 20 January 2026), Cotti Coffee is now a global coffee shop giant.

The architects of this latest Chinese success story are the revived Lu Zhengyao (Charles Lu) and Qian Zhiya (Jenny Qian), former chairman and CEO of Luckin Coffee.

After being overwhelmed by the accounting scandal that led to Luckin’s delisting from Nasdaq, the two found the strength, ideas and capital to start again with a new, high-impact format.

What are the winning ingredients of Cotti Coffee?

Firstly, the prices, which are much lower than those of the competition. For example, an espresso costs only 99 cents ($1.17) in Germany and a cappuccino costs less than €3.

Secondly, aggressive promotions. Furthermore, the shops are usually very small (lower operating costs) and strategically located in high traffic areas.

The mobile-first approach, with orders primarily placed via app, encourages takeaway, delivery and quick payments. Cotti Coffee has landed in Australia, where it has around fifteen outlets in Sydney and is present in Melbourne, Perth and Queensland as well.

It has also arrived in Europe, opening its first outlets in France (Paris), Germany (Hamburg, Cologne, Düsseldorf), and Spain (Barcelona and Madrid).

This month, it is the turn of the United Kingdom, with two London locations in Middlesex Street and Camden High Street. Cotti is accelerating its pace in Belgium, where it has already opened six locations in Brussels, Antwerp, Ghent and Namur. There are also plans for Italy, as well as Portugal and the Netherlands.

Coca-Cola abandons plans to sell Costa Coffee

Coca-Cola will not sell Costa Coffee, but the British chain’s business – acquired in 2018 from Whitbread for £3.9 billion – needs to be rethought, especially in China.

Following reports in the Financial Times, top executives in Atlanta have confirmed that the sale is now off the table. “We have decided to continue to have Costa 100% owned inside our portfolio,” said John Murphy, CFO of the American beverage giant, in an interview with Bloomberg last week.

“There are no immediate plans to do anything with Costa other than to get it performing even better.” Murphy noted that the chain is doing well in almost all major markets – including the UK, Ireland and some European countries – while the situation in China is proving more challenging than expected.

Will Coca-Cola follow in the footsteps of Starbucks, which sold 60% of its Chinese business to Hong Kong-based Boyu Capital?

No decision has been made at this time, Murphy said, while adding that “We will closely monitor our operations in China throughout 2026.”

Costa’s vending business, which Coca-Cola seemed keen to focus on, will also be reviewed.

While the Costa Express concept has been successful in the UK and Ireland, it has struggled to gain traction elsewhere. Murphy noted that expanding the supply chain and logistics has proven more challenging than anticipated.

Last August, Coca-Cola began testing the market for a possible sale of Costa Coffee, appointing Lazard as its advisor. According to the FT at the time, Coca-Cola expected to raise around £2 billion from the sale.

However, negotiations with various potential buyers, including the private equity firms Bain Capital and TDR Capital, stalled and Coca-Cola ultimately decided to abandon the sale.

Coffee futures prices sharply down on Tuesday

Improved production prospects are pushing coffee futures prices sharply down. After Monday’s closure for President’s Day, ICE Arabica lit up the screens again yesterday, Tuesday 17 February, with a session in free fall. The most active contract for May delivery lost 5.1%, closing at 283.10 cents, a new low since early August. There were also heavy losses in London, where the May contract fell 4.6% to finish the day at $3,619 – another low since August.