Luckin Coffee’s Stock is Up, And So Is America’s Caffeine Addiction


Luckin Coffee’s Stock is Up, and Study shows America’s Caffeine Addiction is at an All-Time High

The history of caffeine dates back to the 15th century, but it wasn’t until the 1900s that coffee giants like Dunkin’ Donuts and Starbucks made their debut. Since then, the popularity of caffeinated beverages has skyrocketed and become a cultural phenomenon. A recent study conducted by Amerisleep shows that 69% of caffeine drinkers consume it daily, and nearly one-third exceed the FDA’s recommendation. Unfortunately, 8 in 10 people are unaware of their daily caffeine consumption, and many companies are cashing in on this craze — from 5-Hour Energy shots and Bang Energy Drinks to McDonald’s $1 Sweet Tea.

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Despite our love for all things caffeine, nothing will ever compare to a good ole cup of joe. Hot coffee is the preferred beverage among all generations, and Starbucks has taken advantage of that on an international level. Compared to Dunkin’ Brands, the company holds about 20,000 more stores spanning across 75 different markets. While chains like Costa Coffee and Tim Hortons have rapidly expanded in their respective countries, Starbucks remains the front runner.

Luckin Coffee history

Although, the ICR Conference (one of the largest investment conferences) this week brought about news of another coffee connoisseur who might be trying to compete. Luckin Coffee is said to be the fastest-growing coffee chain in China, a country that is typically known for their hot tea beverages. The company actually surpassed Starbucks last year with 4,500 store locations, compared to 4,300. Launching in 2017, their level of growth in just two years has proven their business model to be efficient.

More than just a coffee shop, Luckin recently announced a plan to expand their efforts and enter the unmanned retail market with "smart" vending machines. This will bring their product closer to both new and returning customers, as well as allow them to franchise on a smaller scale. Living in such a fast-paced society, many people nowadays are constantly on-the-go and are looking for convenient, simple alternatives. The easy accessibility of these machines could make them the future for coffee businesses everywhere. Peaking the interest of many investors, Luckin’s stock has jumped to new heights over the past few months, with a 6% increase as of January 14th. It looks like they’ve earned their nickname as the “Starbucks of China.”

Although the average person in China has just 5 cups of coffee per year, studies show that the average caffeine drinker in the U.S. consumes a whopping 799 servings of caffeine annually. Will Luckin Coffee give Starbucks a run for their money in years to come?

Luckin Coffee

Luckin Coffee

Luckin Coffee

Luckin Coffee