Thursday, January 01, 2004

Blenz Coffee's tall order: Taking on Starbucks in China

By GEOFFREY YORK

BEIJING -- With a whiff of tobacco smoke and a sly hint of anti-Americanism, the upstart Blenz Coffee chain from Vancouver is mounting a brazen challenge to the mighty Starbucks empire in China.

Seattle-based Starbucks Corp. has dominated the Chinese market for five years, establishing more than 80 outlets in mainland China after becoming the first Western-brand coffee chain to establish a strong presence here in early 1999.

But in a bold coup this past spring, Blenz Coffee managed to beat Starbucks into the important southern metropolis of Guangzhou, becoming the first Western chain to open an outlet in the capital of China's wealthiest province -- three months ahead of the first Starbucks store. Seven months later, Blenz is due to open its sixth coffee shop in China today.

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