Tuesday, October 22, 2013

The Caffeine Hit

CCTV revealed the non-news that Starbucks coffee is expensive, especially when compared to Starbucks coffee that didn't have 17% sales tax slapped on it in other countries.

Drafting in an expert in coffee matters, one Wang Zhendong appeared in an interview for the piece, explaining that because people loved the brand, Starbucks were able to charge more for something that was in high demand.  Wang, the director of the shadowy Coffee Association of Shanghai was more than willing to tell it like it is, saying that "Starbucks has been able to enjoy high prices in China, mainly because of the blind faith of local consumers in Starbucks and other Western brands."

At first glance, the seven minute hatchet job screened by CCTV News appears to be just another in a series of attacks by the Chinese media on western brands being way too expensive for ordinary Chinese to buy.  Odd, then, that one of the more prominent logos on the Coffee Association of Shanghai's website is Lavazza, hardly known for their cheap as chips coffee.

The unexpected attack, and appearance of Mr. Wang simply could not be at all related to the fact that the Coffee Expo 2013 is about to kick off at the end of the month, hosted in the city of, er, Shanghai.  The website for the expo helpfully details two different price plans - 1350rmb registration fee for Chinese exhibitors, and 3200rmb for foreign companies.


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