China-founded chain Luckin Coffee generated RMB 7.2 billion ($986.8 million) in revenue in the third quarter of 2023, marking an 84.9% year-on-year growth, as its baijiu-infused latte collaboration with Moutai witnessed huge sales in September. Net profit also increased by 87% to nearly RMB 1 billion, though the company’s operating income margin dropped from 16.2% in the previous quarter to 13.4% amid an ongoing price war with its domestic competitor Cotti Coffee; Luckin offers coffees priced from RMB 9.90 while the latter sells certain beverages at RMB 8.80. Luckin’s revenue during the period led Starbucks again after it first overtook the US-based coffee brand in the second quarter. Starbucks posted revenue of $841 million in China for the third quarter, up 8% year-on-year. [Luckin Coffee]
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