DTS8 Coffee Company announced today that, effective June 10, 2014, it owns a 19% equity interest in a joint venture company, established in the Shanghai Tax free Zone, to own and operate Café De La Don Manuel' branded coffee shops throughout China.
The joint venture anticipates opening its first coffee shop in Shanghai by September 2014.
The Café De La Don Manuel' coffee café's will exclusively sell the Don Manuel, 100% Colombia coffee, artisan roasted by DTS8 Coffee. DTS8 will directly derive revenue from the sales of roasted coffees to the joint venture and indirectly its share of distributable profits from the joint venture. Mr. Li Houkai, a businessman in Shanghai, China, owns 76% of the equity interest of the joint venture and is also the project manager.
Mr. Alex Liang, Chairman of DTS8 stated: "Entry into retail coffee market enables DTS8 to increase sales of its roasted coffees created specifically for the Chinese market under the iconic Don Manuel® brand."
Mr. Li Houkai, the majority partner and the project manager said "We agreed to establish a joint venture with DTS8 due to its unique business model, competitive advantages and strengths over the competition that provides stability for our coffee cafe build out plan in the world's fastest growing coffee market. We project a profitable business venture and plan to unveil our first shop by September 2014, with 5 more slated to open first quarter 2015."
