McKee - China on Caffiene

8/12/2019 McKee - China on Caffiene

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With much of the Western world

analyzing Chinas economic developmentwith extreme interest, few Westerners

realize the impact China has with alteringproduct production and consumption tosuit Chinese characteristics and customs.

This paper analyzes the growth of thecoffee industry in China and the effectthis new industry has on the traditional teaculture. Ultimately, this project

concludes that one must remove the lens

of ignorance to perceive properly theimplications of a new coffee industry andhow the Chinese have purposefully

altered the Western concept of coffee to

adapt to the Chinese customs and palette.

China on

CaffeineThe Entrance of Coffeeby Westernization

Brandon McKeeProf. John Williams

Spring 2011


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Introduction

Watching the espresso machine in the student cafeteria at Beigongda University in

Beijing, I observed as a creamy-sugary blend of coffee that the campus has grown accustomed to

drips into the awaiting small plastic cup. When I asked about the contents of the coffee, I

received a sharp response, It's coffee, what more do you want?from the student worker. She

was correct, I did order a cup of coffee; and, I received the coffee. She then handed me the small

cup and a package of instant coffee produced by the same brand MacCoffee. Turning over the

package, the ingredients listed in the following order: sugar, 55%; non-dairy creamer, 32.5%;

and natural instant coffee, 12.5%.1 Unbeknownst of her action, the student worker had

introduced me to a new type of coffeeone consisting of considerably less coffee than the

Western norm. In the weeks following, I came to call this sugary candy-in-a-cup blend,

Chinese coffee.

For thousands of years, the Oriental world has forged an intimate relationship with many

variations of the tea beverage. Up until the early nineteenth century, the Chinese did not know

the Western world was brewing a different kind of hot beverage. The tea beverage is culturally

bound to the different regions all throughout Asia. Whether one meets the nomadic people of the

Nepali mountainous regions, or is welcomed into a Chinese family's residence in Shaanxi

Province, the individual will receive the customary cup of tea. As a symbol of hospitality and

friendship, tea is a fundamental element of the Chinese approach to relationships and everyday

life.2 In the early 1920s, coffee quietly entered China through trade with Shanghai merchants.

Initially, the Chinese viewed the foreign bean not as a threat to the traditional tea culture, but far

1See Appendices 31 & 58.2Nicky Dawda, "Carrying Mystical Tea? Maybe It's Best to Be Discreet ,"New York Times, July 6,

2010, accessed March 5, 2011, http://www.lexisnexis.com/.


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worse, as a threat to Chinese culture in general. Local cafes experienced rough years in the

1920s and 30s due to the Chinese backlash at the Westernization growing in China. At the time,

threats to change China were neither desired, nor tolerated. Coffee was not introduced to China

until the early 1920s, and even then, the beverage was viewed as foreign and unappealing.3

However, as with much of Chinas recent cultural changes, contemporary society is, yet again,

challenging old Chinese traditions. This time, a Western hot beverage could potentially find its

entrance to China in the hearts and minds of the Chinese youth and ultimately contest the

traditional tea culture.

The Western world has cultivated a new culture. This culture is fueledliterally and

theoreticallyby the demand for one natural resource: the coffee bean.4 Originally produced in

the Caribbean, the coffee bean has slowly made its way into households and economies in South

America, Africa, Europe, North America, and now, Asia. Finding a home in a culture where tea

is the traditional beverage, coffee beverages are now an option in the more urbanized and

touristy regions of China. Asia is experiencing a new type of business penetration driven by

entrepreneurs who see a large potential in popularizing the coffee beverage.5

When the Communist Party took political control of China in 1949, the Party acted

swiftly to remove all Western influences, coffee included. Though coffee's popularity failed to

grow past the 1920s, the beverage survived underground with different enthusiasts who awaited

the opportunity to develop a future industry. The 1980s provided the perfect environment for

coffee to resurface as a beverage in China. Resorting to the roots, coffee began in Shanghai

3Maura Cunningham, "China's Coffee Culture," Forbes, accessed March 4, 2010, last modified April

28, 2010, http://www.forbes.com/2010/04/28/starbucks-china-consumers-markets-economy-

coffee.html.4Ibid.5Ibid.
http://www.forbes.com/2010/04/28/starbucks-china-consumers-markets-economy-coffee.htmlhttp://www.forbes.com/2010/04/28/starbucks-china-consumers-markets-economy-coffee.htmlhttp://www.forbes.com/2010/04/28/starbucks-china-consumers-markets-economy-coffee.htmlhttp://www.forbes.com/2010/04/28/starbucks-china-consumers-markets-economy-coffee.html


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before moving to other urbanized centers in China. Business owners adopted new methods to

create a cultural appeal and attract Chinese into the cafs. These changes allowed the industry to

flourish through the next two decades, until the growth caught the attention of international

corporations. The opportunity to commandeer a growing industry in one of the largest populated

nations in the world brought megacorporations like Starbucks to the Chinese government's

doorstep. In 1998, the Chinese government accepted Starbucks, the worlds leading coffee

company, request to expand into China. In 2006, the coffee megacorporation opened more than

350 stores in Chinas largest cities.6 The prosperous Western culture gripping Chinese youth

added popularity to the new beverage and allowed companies like Starbucks to thrive in a new

market.

As Starbucks and other coffee corporations seek ways to divide the new market, the

Chinese coffee market has transformed the original relaxed coffee culture into a fast-paced and

inexpensive caffeine fix. The Chinese are quickly becoming the world's largest instant coffee

consumer economy. Oddly, Starbucks did not take advantage of the market until May 2011 with

the introduction of its year old instant coffee brand called Via. Nescafe took advantage of the

open market and instant coffee packets to the region.7 Still, the market for coffee evolves, and

the coffee companies that enter China continue to study the Chinese for new ways to market the

Western beverage.

6Geoff Colvin, "The World's Most Admired Companies,"Fortune, March 3, 2011, accessed March 5,

2011,

http://money.cnn.com/2011/03/02/news/companies/most_admired_intro.fortune/index.htm?iid=EAL.7Maura Cunningham, "China's Coffee Culture."


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Research Questions

The coffee beverage evolution in China is slowly developing into a cultural issue. At this

point, one might consider the following questions: What are the possible cultural impacts for a

change in preference from tea to coffee? What possible metaphorical or symbolic changes in

Chinese society could occur? And, does coffee remotely pose a threat to the established tea

beverage in the short and/or long terms? These are valid questions to consider as Western

business, and entrepreneurial ideas sweep Eastern Asia.

In order to understand the Western culture influence on popularizing coffee in China, this

study will attempt to uncover the Chinese mindset and possible culture implications from the

growing coffee market. To delve deeper and more specifically into the growth of coffee, more

questions surface. The following questions listed act as avenues to study the questions posed

above:

Will coffee compete with the established tea culture? What correlations exist between Westernization and the growth of a coffee industry in

China?

Are the Chinese fighting the growth of coffee in China? Can coffee be a generational beverage? Will coffee consumption change from rural to urban regions? And, how will Kazakhstan relate to China within the context of the coffee industry?

To examine and answer the previous questions, this study will attempt to understand the

growing culture of coffeewith context given to teain China, the influence of westernization

and coffee on China's youth population, and how the government and business worlds view the

growing coffee industry. By combining personal observation with informal and formal


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interviews, ranging from a wide variety of individuals both working and studying the industry

and consumers, this study can achieve the goal of uncovering the implications coffee has on

culture.

Literature Review

When British missionaries first brought coffee through Shanghais port in 1920, few

Chinese raised a brow.8

In fact, few academics and government officials even realized that

coffee had entered the Chinese market. Though the initial thoughts of the drink negatively

affiliated the beverage with the missionaries, small groups of Chinese citizens began selling and

offering coffee in Shanghai. Originally, the beverage had little to no effect on the local culture.

Coffee was considered a western drink with an acquired taste and ultimately lacking any base for

a local following. In 1949, and Mao's rise to power, the Chinese Communist Party removed

coffee from China, determining it to be an undesired Western influence. Beginning with

metropolitan regions then forcefully removing it from the suburban areas where coffee had

slowly settled, the Communist government made sure that its complete control of the Chinese

people excluded any external influences, including coffee. For more than 30 years, coffee

ceased to exist in China, and was largely forgotten.9

In the early 1980s, the coffee industry gained momentum with the general rise of

capitalism in China. This entrepreneurial drive to bring the coffee industry to the Chinese

marketplace had not occurred since the early 20th century. This time, entrepreneurs created a

new approach to generating a coffee industry in China. Author of China's Brave New World--

8Nicky Dawda, "Carrying Mystical Tea? Maybe It's Best to Be Discreet."9Jeffrey Wasserstrom, "Sipping Starbucks, From Bloomington, Indiana to Shanghai, China," World

Hum, January 30, 2008, accessed March 5, 2011, http://www.worldhum.com/features/speakers-

corner/sipping_starbucks_from_bloomington_indiana_to_shanghai_20080128/.
http://www.worldhum.com/features/speakers-corner/sipping_starbucks_from_bloomington_indiana_to_shanghai_20080128/http://www.worldhum.com/features/speakers-corner/sipping_starbucks_from_bloomington_indiana_to_shanghai_20080128/http://www.worldhum.com/features/speakers-corner/sipping_starbucks_from_bloomington_indiana_to_shanghai_20080128/http://www.worldhum.com/features/speakers-corner/sipping_starbucks_from_bloomington_indiana_to_shanghai_20080128/


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And Other Tales for Global Times, Jeffrey Wasserstrom, Professor of Chinese and world

history at the University of California, Irvine, described the Western coffee conglomerates, such

as Starbucks, entrance to the Chinese market as one of ensuring that the cultural

accommodations to the Chinese setting wouldbe made.10

In other words, Wasserstrom

indicated that the coffee corporations wishing to pursue business in China forced them to adapt

to the local community customs. This strategy has created a Chinese feel and welcome to the

coffee beverage, without altering the Western and primarily American brands.11

To understand contemporary society in China with coffee as a challenger to the

traditional tea beverage, one must first answer the following question: Are the Chinese drinking

coffee? Though this question seems simple, the answer may uncover the implications and

cultural changes affecting Chinese society. The straightforward answer to whether the Chinese

drink the beverage is yesmore specifically, the younger generation.12

As the Chinese youth

adopt their Western counterparts' preferential styles and pop culture, coffee expands as a larger

portion of the beverage market in Chinathus, challenging the dominant tea industry.13

The

current coffee industry development in China has challenged the tea industry which many

Chinese associate as changing the core character of their culture.14

Many who share the belief

that coffee robs the Chinese of their heritage, point to any even larger assertion. Stated

previously as a question in the introduction, this assertion focuses on the relationship of true free-

market capitalism and China.

10Jeffrey Wasserstrom, "Sipping Starbucks, From Bloomington, Indiana to Shanghai, China."11Ibid.12Alec Ash, "What Do Chinas Best & Brightest Drink, Coffee or Tea?"Renovate China, accessed

March 5, 2011, last modified November 6, 2009, http://enovatechina.com/blog/.13Nicky Dawda, "Carrying Mystical Tea? Maybe It's Best to Be Discreet ."14Maura Cunningham, "China's Coffee Culture."
http://enovatechina.com/blog/http://enovatechina.com/blog/


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Arguably, Capitalism is taking the global market by force. The drive to become self-

sustaining and competitive in all regions of the world pushes the average business to seek

opportunities abroad. Racing for global dominance, U.S. companies focus abroad because of

domestic uncertainty and a constant fluctuating market. The U.S. food industry, mostly

consisting of international giants like Nestle, Coca-Cola, and Kraft, all seek opportunities abroad

more than ever before. Restaurant chains analyze possible markets primed for growth overseas,

specifically in that of Asia.15

For Subway and McDonalds, the battle abroad sets them against

one another for American brand control of the Chinese market. With more than a sixth of the

worlds consumers largely populated around megacities in China, business opportunity awaits

any who influence the government to allow restaurants to open, and for whoever can get there

first. Among the chains, seeking to capitalize on the Chinese market is Starbucks Corporation.16

Though the corporation did not gain entrance to the market until 1998, the Seattle-based coffee

company failed to decide just how much it would expand into China until 2006. Recently,

Starbucks announced plans to triple the amount of stores in China by 2015. While a

considerable feat, no market rivals a hunger for business like the Chinese market.

With the reemergence of a Chinese coffee industry in the 1980s, a metropolitan drive for

free business practice emerged with force, which allowed local Chinese cafs to start-up and

prosper. Commenting on new growth in Shanghai, Maura Cunningham wrote, present-day

proliferation of cafes in Shanghai represents both a novelty and a resumption of an old

cosmopolitan trajectory that was interrupted for a time.17

When the opportunity finally

resurfaced for a coffee culture to expand, Chinese youth took advantage of cheap instant coffee

15Geoff Colvin, "The World's Most Admired Companies."16Jeffrey Wasserstrom, "Sipping Starbucks, From Bloomington, Indiana to Shanghai, China."17Maura Cunningham, "China's Coffee Culture."


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additions and shied away from entering the cafes for a more expensive real coffee. From

various offensive comments targeting the price of coffee at Starbucks in the United States and

around the world, McDonalds responded with a cheaper coffee that enabled the routine coffee-

drinker to grab a drink both to, and from work. When the Chinese began to shy away from

Starbucks expensive beverage offering and favor McDonalds, the truth of the Chinese industry

remained in the market niche of instant coffee. Instant coffee made its entrance to China around

the same time as Starbucks. This attempt to focus on an instant line allowed Nescafe and

MacCoffee to gain control of a growing market for coffee. Nescafe was able to move quickly

and expand, ultimately beating MacCoffee to much of the Asian region. Chinese students, the

major demographic of coffee-drinkers in China, pursued the convenience afforded by the

combination of instant coffee, powdered creamer, and sugar.18

For this reason, coffee

corporations are currently forced to address an older generations preference for tea and a

younger generations infatuation with instant coffee. Despite this apparent lack of acquired taste,

the coffee industry continues to grow.

With Shanghai quickly gaining a coffee following of coffeehouses and consumers and a

major base from which coffee can grow into the country, Chinese entrepreneurs responded to the

demand for more Western coffeehouses with independent copy-cats of their own. Starbucks

recently filed a lawsuit against a Shanghai-based coffee corporation called Xingbake. In

English translation, Xingbake literally means Starbucks. Starbucks even pursued the fact that

the Shanghai-coffeehouse logo suspiciously represented the famous green circle with mermaid

center.19

This uphill battle in China indicates one large transformation. Chinese entrepreneurs

see the positive influence and opportunity Western companies have created in China, and are

18Alec Ash, "What Do Chinas Best & Brightest Drink, Coffee or Tea?"19Geoff Colvin, "The World's Most Admired Companies."


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whole-heartedly pursuing the market prospect with similar meansscarily similar means in

Starbucks case. This transformation also evidences another change. This change is one of

culture. Though the older generations mostly hold true to the tea beverage, the younger

generation, once again, pursues a form of the Western culture that strongly evidences the

presence of a greater concept. Could the Chinese youth be influenced by a culture attempting to

separate the Chinese from their cultural past? As Westernization occurs quickly in many

countries, is China becoming a stage for such changes to occur on a much wider basis?

Therefore, as the Chinese entrepreneurs have already uncovered, the emergence of a coffee

industry could not only signify a variation in preference for the Chinese, but also a factor for

change of Chinese culture.

In summary, the development of coffee as a possible challenger to the established cultural

tea beverage could not only indicate a change of culture, but also a progression towards Western

ideals and business practices.

MethodologyThis project's objective is to provide qualitative evidence for a possible culture

transformation in China due to an increase in coffee consumption and the development of a

coffee industry uprooting the established tea industry. I have researched coffees rise to

popularity in China and wonder whether this revolution is due to Western influence. After

thousands of years, tea has evolved into a beverage that defines a culture, defines the Chinese.

Currently, coffee is the trendy option for the younger generationespecially, university students.

In order to analyze academically the assertions and hypothesis made in the introduction

of this paper, this study will focus on two countries that share a common border. The countries

of interest are China and Kazakhstan. China will be the primary culture this study seeks to


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define, and Kazakhstan will allow this study to gain a perspective as to whether the growing

coffee culture could be a matter of trade through Asia and, likewise, if Kazakhstan is affected by

the influence of Westernization in the coffee industry.

The research method chosen for this study combines formal and informal interviews with

personal observations. This perspective should allow the culture to continue untouched without

interruption in cafes, restaurants, etc. To understand fully the coffee industry and the beverages

effect on Chinese culture, I will conduct my research through a generational and location

approach.

The generational approach will be to interview and observe individuals of both older and

younger generations. This will allow an interpretation of the growing coffee culture, and if it

affects the rooted tea culture in China. In addition, by breaking down the Chinese and Kazakh

target audiences, a broader perspective can be gained of whether this could be a generational

trend rather than a cultural factor. To be certain, this study does not assert that a cultural shift is

occurring solely by way of the growing coffee market in China. This study does seek to explain

the growing industry by way of Westernization and who could be growing the market. With this

in mind, a generational approach will give this study a historical and modern perspective of the

drink's influence in the countries.

Subsequent to a generational approach, a "location" approach is necessary. This method

will provide the necessary information to formulate an idea as to causes for development of the

country's economy and coffee industry in rural and suburban settings. The important part of this

research is to include the rural regions as a comparison to the urban setting. As this papers

Literature Review and Introduction confirm, coffee originated in the seaports of Shanghai


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and Hong Kong. Understanding the extent to which coffee has evolved in China should give an

idea as to the cultural implications and popularity of the beverage.

Here is where this study attempts to enlarge the world of academia. Never before has

research sought to comprehend the reasons why the Chinese elderly generation refuses to accept

coffee; and, in contrast, why the younger generation has seemingly embraced the expansion of

coffee in China. The influence Westernization has in China could be confined to the younger

generationone more open to influence than the elder. This explanatory factor for a possible

transformation in society includes metaphorical and symbolic changes. Also, these much deeper

derivations of the general coffee question will help strengthen an argument for Chinas embrace

of capitalism. To study these various questions and thoughts, this project will seek evidence

from personal experiences in coffeehouses, restaurants, and other meeting places.

Finally, one might question the authenticity or the importance of expending resources to

expand the world of academia in this manner. My research method combines personal

experience and interaction with both target audiences. For a period of ten weeks, I lived,

interacted with, and absorbed both nations on the ground in person. The data collected is not

from an indifferent research firm, but from personal face-to-face interactions with coffeehouse

owners, managers, and employees, and with citizens of both countries. The students exclusive

capacity to infiltrate a culture will empower the research collected during this project. This study

will academically study the target audience with personal observations, structured interviews,

informal conversations, by intentionally asking questions to groups of people, and from

observations in personal residences. Only a complete immersion in China enables one to

dedicate full thought and effort to studying and analyzing culture.


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Beginning in late March 2011, I spent ten consecutive weeks studying and living in

China and Kazakhstan. I studied culture for the duration of eight weeks in China and two weeks

in Kazakhstan. I lived with a group of students from Principia College and studied at Beigongda

University in Beijing for the majority of my time in China. We all lived in the international

student dormitory on campus and were in constant interaction with Chinese students. Lunch was

the only meal conducted on campus each day; we were required to find all other meals.

Individually, we were immersed completely in Chinese society and conducted daily errands by

way of public transportation. Each weekend we took excursions outside the city. Two weeks

spent in China were dedicated to exploring the rural regions of Shaanxi ProvinceAnze County,

Teng Cheng, and Ho Di Paoand a week trip on the famous Silk Road beginning in Xi'an

before traveling west through Jiayuguan, Dunhuang, Tu La Fan, and into Urumqi. Following our

trip on the Silk Road, we spent two weeks traveling Kazakhstan. The majority of our time in

Kazakhstan was spent at KIMEP University in Almaty where we stayed in the student

dormitories on campus. We also spent eight days traveling the country, primarily in the cities of

Karaganda and Astanathe capital. Altogether, our mindset traveling both countries was

academic, not touristy. As we were responsible for living in each community we traveled

through, I was able to gain a vast perspective and great amount of research for this project on

each location we visited.

On a final note, I must include that I have gained conversational abilities in both

Mandarin and Russian. While I am not fluent in either language, a conversational language

aptitude allowed me to lower some of the language barrier and engage with locals. The

conversations I experienced in both countries provide the foundation of research for this project.


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In summary, this holistic approach will allow the pursuit of the projects goal to fruition

and achieve the original intentions to study the Chinese culture with respect to Westernization.

DataFormal Interviews:

1. Appendix 1: Owner, French Cafe, Near Friendship Store, Beijing, China2. Appendix 2: Owner, Tianjin Teahouse, Near Friendship Store, Beijing, China3. Appendix 3: Manager, Starbucks, Outlet Stores near Beigongda, Beijing, China4. Appendix 4: Manager, Starbucks, Near Friendship Store, Beijing, China5. Appendix 5: Shift Manager, Atanu Restaurant, Shanghai Signal House, Shanghai,

China

6. Appendix 6: John, Owner & Founder, New Zealand Cafe, Near Beigongda, Beijing,China

7. Appendix 7: Regional Manager, Costa Coffee, BHG Market Place, Beijing, China8. Appendix 8: Branch Manager, Starbucks, Xi'an, China9. Appendix 9: Kevin & Sheryl Gilley, The Oasis Cafe, Dunhuang, China10. Appendix 10: Ruslan, Bar Manager, Noodles Restaurant, Almaty, Kazakhstan

Informal Interviews:

1. Appendix 11: Michelle Wang, President of English Association of BJUT, Beigongda,Beijing, China

2. Appendix 12: Gealy, English Association of BJUT, Beigongda, Beijing, China3. Appendix 13: Employee, McDonald's, Wanfujing, Beijing, China4. Appendix 14: Weekend Manager, Ming Teahouse, Wanfujing, Beijing, China5. Appendix 15: Eileen, English Association of BJUT, Beigongda, Beijing, China


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6. Appendix 16: Jared, English Association of BJUT, Beigongda, Beijing, China7. Appendix 17: Cathy, English Association of BJUT, Beigongda, Beijing, China8. Appendix 18: Barista, Starbucks, Shanghai, China9. Appendix 19: Hostess, Cafe Francais, Shanghai, China10. Appendix 20: Manager, Hotel Cafe, Grand Gongda Jiangou Hotel, Beijing, China11. Appendix 21: Employee, McDonald's, Near Outlet Stores, Beijing, China12. Appendix 22: Feng Laoshi, Beigongda University Professor, Beijing, China13. Appendix 23: Liang (Megan), English Association of BJUT, Beigongda, Beijing, China14.

Appendix 24: Turing, English Association of BJUT, Beigongda, Beijing, China

15. Appendix 25: Dorothy, English Association of BJUT, Beigongda, Beijing, China16. Appendix 26: Sally, English Association of BJUT, Beigongda, Beijing, China17. Appendix 27: Eileen, English Association of BJUT, Beigongda, Beijing, China18. Appendix 28: Troy, International Communications Course, Beigongda, Beijing, China19. Appendix 29: Kobe, International Communications Course, Beigongda, Beijing, China20. Appendix 30: Lizhe, China National Guide, Anze County, Shaanxi Province, China;

Boalin, Retired PLA Officer & Surgeon, Anze County, Shaanxi Province,

China

21. Appendix 31: Wu Ming, Student Worker, Canteen #3, Beigongda University, Beijing,China

22. Appendix 32: Sue Laoshi, Beigongda University Professor, Beijing, China23. Appendix 33: Bar Manager, Hill-Top Cafe, Near Bell & Drum Towers, Beijing, China24. Appendix 34: Cafe Manager, Starbucks, BHG Market Place, Beijing, China25. Appendix 35: Owner, Grandma's Kitchen, Near Friendship Store, Beijing, China


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26. Appendix 36: Agness, Xi'an Tour Guide, Xi'an, China27. Appendix 37: Shari, Silk Road Guide, Jiayuguan, China28. Appendix 38: Armat, Vendor, Buddhist Ancient Temple, Tu La Fan, China29. Appendix 39: Risa, Local Guide, Tu Lan Fan, China30. Appendix 40: Barista, Coffee stand in Tu La Fan Hotel, Tu La Fan, China31. Appendix 41: Seejian, Cafe Manager, Caffe Segafredo, Almaty, Kazakhstan32. Appendix 42: Illnurick, Barista, Black & Brown Cafe, KIMEP University, Almaty,

Kazakhstan

33.

Appendix 43: Tima, KIMEP Student, Almaty, Kazakhstan

34. Appendix 44: Illnura, Tour Guide, Karaganda, Kazakhstan35. Appendix 45: Maria, Tour Guide, Karlag Gulag, Karaganda, Kazakhstan36. Appendix 46: Maria, Manager, Beach Club, Khan Shakra, Astana, Kazakhstan37. Appendix 47: Jaren Shaw, Barista, Hargut Club, Khan Shakra, Astana, Kazakhstan

Personal Observations:

1. Appendix 48: Beijing, China2. Appendix 49: Shanghai, China3. Appendix 50: Anze County, Shaanxi Province, China4. Appendix 51: Teng Cheng, Shaanxi Province, China5. Appendix 52: Hao Di Po, Shaanxi Province, China6. Appendix 53: Xi'an, China7. Appendix 54: Jiayuguan, China8. Appendix 55: Duahuang, China9. Appendix 56: Tu La Fan, China


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10. Appendix 57: Urumqi, China11. Appendix 58: Almaty, Kazakhstan12. Appendix 59: Karaganda, Kazakhstan13. Appendix 60: Astana, Kazakhstan

Analysis

Coffee's growing popularity in China is rooted in the understanding of the contemporary

tea culture, and the effects of Westernization. From the initial round of interviews, the Western

corporate drive to influence the populace in urban areas is evidenced by the ever-increasing

positive advertising that appears throughout Beijing and other urban cities. This importation of

culture from the Western world is viewed not only with coffee but also with a variety of other

products. To begin this analysis of the coffee culture in China and Kazakhstan, I will first

discuss and summarize the traditional tea beverage.

Tea Culture

In the beginning, the Lord created the earth, the animals and man. On the seventh day,

the Lord rested and shared a cup of tea with Mother Nature. Historically, tea is the lifeblood and

cure-all remedy for the Chinese. It constitutes a basic necessity in everyday life and is believed

to be grounded in the regularity of the daily routine.20

Culturally, tea is a unique and integral

element of the Chinese culture.

For over five thousand years, tea has undergone four distinct transformations. The first

phase began with primitive man (770BC450 BC). The root of a tea culture can be found in the

method of picking leaves for food purposes. Teas medicinal value did not appear until the later

portion of the three hundred year timeframe. Even at an early stage, tea was discovered to cure

20See Appendix 4.


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diseases and increase livelihood. The second phase occurred between the Qin Period (before

221BC) and the East and Western Han Dynasties (210BC - 190 AD). It is during this period that

tea turns into a beverage, rather than a food. Made with millet, the substance was soupy and

required additives including lemon, onion, and ginger. The third period of tea development

occurred during the Three Kingdom era of Chinese history (220256 AD). Though tea had

evolved into a beverage, the tea leaves were still thrown in whole. This era illustrates the first

time tea leaves were ground before added to the beverage. The method of grinding up the tea

leaves gained popularity during the Tang Dynasty (618907 AD).21

At this point, tea developed into its final modern statethe fourth transformation. This

method dries the tea leaves before they are ground and steeped with hot water that creates a drink

that can be consumed with, or without the tea leaves. Tea was considered more for people of

poverty, until various emperors popularized the beverage as a drink of their ancestors.22

The

Song Dynasty is credited with the origins of grinding the tea leaves, and the Ming and Qing

Dynasties are the periods where tea most closely resembles the modern tea methods and

beverage.23 This historical context is required to understand the value of a foreign drink

attempting to influence Chinese culture and society. While the evolution of tea is important,

there is a deeper culture connected to the beverage shared by tea connoisseurs and enthusiasts.

The power of tea has also evolved through the ages. Regarded as a medicinal drink

capable of curing many different diseases, tea is also considered an inspirational beverage that

allowed scholars to open their minds to the world and gain insights in subjects beyond

themselves. Famous Chinese scholar Liu Zhenliang once said, Tea can dispel depression,

21See Appendix 14.22See Appendix 4.23See Appendix 14.


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conquer lethargy, engender vigor, cure diseases, cultivate propriety, and benevolence, express

respectfulness, elevate taste, train the body, improve moral behavior and sublimate

aspirations.24

When a concept is fundamentally rooted in the identity of a culture, the

likelihood of that culture losing its roots is unlikely. So is the way of the tea culture as it has

evolved and adapted to contemporary society. Tea reflects the shared desire of many emperors

and dynasties to incorporate tradition and identity with Chinese culture. To study the effects and

influences of coffee, the established tea culture must first be understood.

Coffee Culture

Aforementioned in the Methodology, the two approaches utilized by this project

include a generational and location analysis of the target market. This method and dual approach

has proven fruitful to dismantling the various viewpoints of both tea and coffee.

To avoid confusion as to the definition of coffee culture, this project defines said term

to be the understanding and appreciation of the coffee bean. This includes a number of various

factors. As understood with the tea culture, the coffee culture is based on an understanding of

the process, beverage, and variety of the beverage. The culture is an intangible product that pairs

with the beverage in any given population. When coffee culture is discussed in this project, the

definition simply utilizes the understanding of coffee in general and recognition of the beverage

as a whole.

Analysis by Generation

When I began to collect information, I split the target audience into three major

generations. The generations include: the youth, ages 15 - 28; the adult, ages 29 - 65; and the

elderly, ages 66+. The necessity to split the opinions and viewpoints from each demographic on

24See Appendix 14.


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both tea and coffee was evident in the beginning. The generations shared very little common

ground, and differed greatly in their approach to each drink. For example, the youth shared the

impression of popular culture, while the elderly controlled theirs. The adult population straddled

a middle ground of being the influencer and the influenced. With different opinions, this set the

stage for delineating the reasons coffee had grown in a mere three decade spanmore so in the

past decade and a half. However, as I began to collect interviews and talk with more Chinese in

urban areas, I realized that there were only two different groups in the generational approach

when in the context of coffee culture.

Therefore, by not utilizing a three-group population, dislike or appreciation for the coffee

beverage divides into two groups. The first is loosely termed the youth generation. This

generation extends from childhood to mid-thirty years of age. Furthermore, this age bracket is

credited with the increasing drive for consumerism in China. China hopes to utilize this groups

economic drive to transform the Chinese production-driven economy into one of consumerism.

The youth to young adult population is the target audience for the advertisers hoping to

popularize their products.25 In the case of coffee producers and vendors, the college population

is of particular interest. When properly advertised to, this demographic provides coffee

corporations with the survival necessary for longevity in the market. China's college population

grows each year as parents continue to stress a higher education for their children.26

With more

students beginning college, this educated audience provides the lifeblood for a coffee industry.

As the project progressed, the college demographic frequently rose to the forefront of the

coffee argument. This population is the first group to receive aggressive popular culture

advertising. The intentional awareness of what is popular and what is not has helped

25See Appendix 11.26See Appendices 11; 12; 15; 16; 17; 23; 24; 25; 26; 27; 28 & 29.


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corporations, like Starbucks, market products to the general Chinese populace. Marketing a

culture of academia and coffee, the appeal targets college-aged individuals and others with a

developed education. As I surveyed and conversed with more Chinese students, I realized that

the primary drive for the students focused on two characteristics for the growing appreciation of

coffee. The first was one of convenience. This convenience does not involve a long drawn-out

process for steeping tea, but a quick preparation period that does not slow down their day.

Unlike the Western world, this demand for convenience is met with one product. Instant coffee

became widely popular in China due to the convenience and sweet taste. I will discuss instant

coffee with context given to the entire spectrum of interviews later on in this analysis. For

purposes of the youth, the instant coffee industry has created a beverage that is convenient and

easily alterable for taste preferences.27

The second characteristic of coffee's appeal is energy. The average student coffee-

drinker does not necessarily enjoy the coffee taste. With ingredients added in to subsidize the

coffee bitterness, the primary reason for drinking the coffee is for the energy provided by the

caffeine in the beverage. This has become the drink of choice with students because of the

inexpensive option provided by, once again, instant coffee. With the stressful environment of

college and the pressure to perform and excel, students pull long hours studying. Stopping short

of a performance enhancing illegal drug, students turn to the caffeine provided by coffee drinks

to allow them to focus on their studies. The coffee drive in the youth generation can be generally

analyzed by the youth focus on convenience and caffeine.28

Outside of college students, yet still in the younger of the two groups defined, are the

young adults either launching or continuing their careers. This group is comfortable with coffee

27See Appendices 11; 12; 15; 16; 17; 23; 24; 25; 26; 27; 28 & 29.28Ibid.


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in the Chinese market. The product popularly grew throughout their lifetime, but does not

necessarily influence them in the same way coffee has the younger Chinese. Their participation

in the coffee culture is primarily a decision to partake. From discussions with adults, the

appreciation of coffee originates in the individual's upbringing. When peer pressure is factored

into their experience, coffee becomes more of a social drink than a societal or cultural drink. On

a broader level, this has become an evident factor in the growth of the coffee industry. Coffee is

a social beverage enjoyed with friends.29

For the adult population, this distinction becomes more

evident when the individual does not have business or professional affiliations.

The professional world provided a different context for the growing coffee industry. It is

possible that the work environment influences businessmen and professionals. I believe this is

due in part to globalization and the sharing of ideas. More often than not, a break room with

coffee options is available for employees in America. In Shanghai and the major financial

districts of China, break room options are similar. Coffee is provided to the employees of major

corporations.30

This infusion of business or a professional environment and the coffee beverage,

has influenced the young adults in the upper portion of the younger generation, which

encompasses childhood to mid-thirty years of age.

At this point, it is important to include tea culture insights from the perspective of the

younger outlined demographic. In most cases, tea is present as an option for children provided

by their parents. Beginning at a young age, children are introduced to tea primarily by their

families.31

This continuation of tea as a cultural beverage melds with Chinese as part of the

societys daily routine. For the most part, the individuals I interviewed discussed their

29See Appendix 32.30See Appendix 5.31See Appendix 22.


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childhoods with regard to tea and the positive health aspects related to drinking tea on a daily

basis. The Chinese government strongly asserts that good health is positively correlated with tea.

Furthermore, many interviewees mentioned that the government at one point stressed that coffee

was bad for the stomach contrary to the belief that tea improved one's health.32

These beliefs

were normally expressed during interviews with the elderly.

The second group of the generational approach is the elder population. This group

overwhelmingly agreed that tea was a cultural beverage. From an early age, these individuals

were cultivated to believe that tea is the cure-all for diseases and illnesses. While tea's medicinal

purposes are widely accepted with the Chinese, this group had a variety of viewpoints describing

their reasons for not liking, or even trying coffee.

The first major factor was health. Coffee was originally negatively advertised by word of

mouth when it entered the Shanghai market in the early 1920s and again in the 1980s.33

This

remains to be a mutually shared viewpoint among elders with coffee. One such interview

unveiled that in the early 1980s, the beverage was believed to cause quick stomach

degradation.34 Whether one believes the beverage causes health problems or not, coffee is

perceived as a beverage open to interpretationpositive and negativeby the Chinese. During

one interview in Xi'an, I was told that the interviewee's grandparents weren't willing to taste the

beverage because it was believed to be solely enjoyed by the homeless.35

Regardless, the elder

generation generally does not partake in the growing coffee culture. The primary reason seemed

to be that this Chinese population accepts a negative perception of coffee, and does not

necessarily desire a change of perspective.

32See Appendix 22.33See Appendix 5.34See Appendix 4.35See Appendix 37.


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In summary, the growing coffee culture can be largely attributed to the younger

generation, as the older generation still maintains the tradition of tea as the cultural beverage of

choice.

Analysis by Location

Traveling China and Kazakhstan is different than traveling the United States. The rural

regions are in no way similar to the rural regions of the United States. In China's case, the

world's largest population is heavily concentrated in urban settings. In addition, a city in rural

China can still average a population beginning in the couple thousand. The differences for

coffee appreciation, and in actuality, simple recognition of the beverage greatly differed from

urban to rural China.

To say that urban China is populated would be a sincere understatement. In actuality,

urban China is quickly reaching capacity. The issue of capacity becomes more a concern to

urban cities that uncover problems relating to water resources, sewage systems, and power

stability. Nevertheless, the issue of population can also become a corporate marketing

opportunity. With the ability to influence, comes the ability to manipulate the public to magnify

the popularity or dislike for a product. In Beijing, coffee is quickly developing into an industry

popularized by foreign companies and mirrored by local entrepreneurs.36

So is the case in

Shanghai where international organizations have fought hard against issues of copyright and

company rights.37

The urban setting is the foundation for coffee and the only environment where

the industry quickly inhabits a place in society.

The magnitude and frequency of coffee shops in urban areas depends on the vicinity of

Western brands. Areas where Western brands are more prevalent normally mean a greater

36See Appendix 48.37See Appendix 49.


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number of coffee shops. Here, the Western desire for coffee dominates the culture within the

coffee shops. Tourists and foreigners constitute a larger portion of the customer base and cafs

offer Western foods to tailor to the foreign tastes.38

In many ways, the urban setting is driven to

adhere to the foreigners and those wishing to share in the experience of a foreign coffee shop. In

more modernized areas, the extended hours of the coffee shops accommodate the morning

crowd. The morning crowd is a concept non-existent in the Chinese coffee culture. As a

social beverage, coffee is more of a trendy and popular drink that is enjoyed with friends and

colleagues rather than a part in the routine. Tea is enjoyed in the mornings, therefore coffee

shops open mid-morning rather than early morning as in Western countries.

Free internet is a novel concept in coffee shops, though regulations ensure that the

content and internet usage is monitored. In both Beijing and Shanghai, the corporate coffee shop

usually follows the regulations to collect information on the internet users in the cafe. For the

family businesses, it is unusual to find free Wi-Fi available, but even more unusual to find a

family business following the regulations.39

Foreigners and those without a Chinese cellular

device or acceptable information recognize and pursue these free personal hotspots. Whether the

coffee shop offers Wi-Fi or adds western pastries and other food products, the customer base in

coffee shops normally includes students and young professionals seeking a place to work on

projects or study. Free internet is a positive aspect of the coffee shop concept, and is something

that family businesses and copycat coffee brands are quickly implementing.

Unlike the urban setting, I was unsure as to the extent coffee would appear in rural China.

I recognized the slim likelihood that coffee would exist in rural China, but did not realize that

coffee would simply disappear the farther we travelled from the coast. From interviews in Xi'an

38See Appendix 7.39See Appendix 1.


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and more west, I began to understand that the tourist destinations were the only true centers for

the beverage.40

The beverage simply had not reached the Western provinces. In the case of

Xi'an, the city is being cultivated to accommodate the increasing number of annual tourists

visiting the city. Coffee is offered in the average restaurant focusing on a foreign customer base.

One such example of the difference that still exists between the foreign and domestic coffee

cultures was evident in one restaurant in Xi'an. This restaurant was three stories and operated

two types of restaurants. On the top floor, there existed a restaurant dedicated to serving a

combination of Chinese and foreign foods. In essence, the top floor existed for tourist purposes.

Coffee is offered for an affluent price, but is offered nonetheless. Descending one story, the

atmosphere is completely different. The cuisine is domestic, and coffee ceases to exist. Coffee

fails to exist on the floor, nor is on the minds of the Chinese enjoying the local selection of

cuisine.41

This example was the introduction to rural China. The further west one goes, the less

likely one is to come across coffee. Instant coffee exists in large supermarkets, but not in

personal residences. Tea is a resilient part of rural China, and the coffee beverage entrance to

regions off China's coastline is still years from fruition.

Instant Coffee

Instant coffee was present from the initial round of interviews. Unlike America, instant

coffee became the choice beverage and method for coffee in China. It is unusual to see the

coffee section in a supermarket stocked with real ground or whole coffee beans. However, it is

entirely customary to find the coffee section of a supermarket stocked with instant coffee. The

price range of instant coffee is considered inexpensive in the overall Chinese price structure.

Already, the instant coffee has the advantage of an inexpensive option. For the students and

40See Appendices 6; 36; 38; 39; 53; 54; 55; 56 & 57.41See Appendix 53.


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majority of the Chinese population, the instant coffee option has opened the world of coffee to

the Chinese consumer.42

Because coffee is not an integral part of society, but one that is growing

with westernization, the Chinese do not see a difference between instant coffee and regular

brewed coffee. The distinction between educated citizens becomes increasingly apparent as one

travels into the rural provinces of China.

In rural China, coffee is virtually unheard of. In fact, in most of the country, coffee as a

term fails comprehension. This is representative of China as a whole because rural China has not

modernized as quickly as urban China. In a way, rural China has been left to develop itself while

the government modernizes the urban cities. China focuses its efforts on developing the parts of

the country in plain view of the rest of the world. The effort to modernize has not necessarily

reached rural China. Without modernization, the coffee beverage is non-existent beyond the

reaches of the densely populated and modernized areas. However, just as products still reach

and are transported to rural China, instant coffee has made its way into the supermarkets in these

rural regions. An interview in Jiayuguan with an American couple that chose to open the first

coffee shop in the region explained this phenomenon. Owners Kevin and Sheryl Gilley

explained this coffee cultivation and how the local Chinese acknowledge the simplicity and ease

of adding instant coffee straight to boiling waterlike adding dried leaves to hot water for tea.43

These individuals fail when they attempt to add ground coffee to hot water and expect the same

result. The instant coffee revolution has dominated rural regions because of the desperate

attempts of companies like Nescafe and MacCoffee to introduce coffee to these markets.

Instant coffee has changed to accommodate the tastes of the local populations. Just as

coffee is altered in the major coffee shops throughout China, so has instant coffee to account for

42See Appendices 11; 12; 15; 16; 17; 23; 24; 25; 26; 27; 28 & 29.43See Appendix 9.


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the desire to have additives such as sugar and non-dairy creamer in coffee. As told in the

Introduction to this paper, the ingredients listed on the back of a package of instant coffee

included: sugar, 55%; non-dairy creamer, 32.5%; and natural instant coffee, 12.5%.44

With this

alteration, I began to define coffee in China differently than the Western concept of coffee.

Coffee in China is different from the coffee served throughout the rest of the world. One

could argue that coffee is different depending on the particular international region, but I believe

the general belief of coffee throughout those parts of the world remain the same. Whether the

barista pulls a shot of espresso with attention given to the strength of the initial shot, or draws out

the shot to gain the full flavor of the bean, the concept of coffee remains unbroken throughout

the Western world. However, in China, the coffee is altered in such ways that a Westerner may

not recognize. For example, the average cup of coffee is served with two or three packets of

sugar and ample amounts of non-dairy creamer. Though the need for extra additives in coffee are

not as prevalent in American company coffee shops, the difference remains.45

This major

alteration to a shot of espresso of extra additives has the ability of diluting the taste of coffee

almost completely. I have begun to term this "Chinese coffee," or a sweet delectable new kind of

candy bar in a cup. Whether hot or cold, the taste remains the same. As ingredients are altered

in mainstream corporate coffee shops, the concept of coffee is skewed from the moment the new

coffee customer tries the beverage. The bitterness is lost, and the satisfaction of appeal to sweet

taste buds replaces the coffee taste almost entirely.

Instant coffee leads this revolution of taste. In order to sell the product, companies

altered the contents to utterly override the taste of coffee, yet maintain the consensus of a popular

44See Appendices 31 & 58.45See Appendices 3; 4; 8; 18; 34 & 41.


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Western beverage. As stated previously, instant coffee is a convenience and provides the

consumer with the caffeine still desired in the beverage.

Inherent Culture

During my numerous visits to various coffee shops in Beijing and China as a whole, I

encountered a great mixture of tea and coffee parables. One such parable I received from an

older man enjoying a cup of espresso in Beijing. This gentleman sat quietly peering out the

window. At one point, I must have caught his attention for he asked about my work. I explained

the project to him and about the interview I was recording, including the project research

questions and hypothesis. After a couple minutes, he told of a simple tale as ancient as the

Chinese culture. This tale was one of creation, of the founding society and ancestors of the

Chinese. Unlike other tales I had heard, this one was simple and did not have an outright lesson.

Perhaps, one might assert that this is what he intendedto allow his parable to sink in. The

storyline was simple.

Thousandsof years ago, at the dawn of creation, sat a man by a hot spring. He had not

more than the clothes on his back and a hollowed out piece of wood. His life was simple,

reflective, and full of peace. He was a scholar and philosopher. The village respected

him for his wisdom, and his guidance epitomized humility and insight. His peace of

mind offered strength and fortitude to others. However, this man had a secret. The

village folk wondered where he received his vast wisdom, strength of mind, and serenity.

While they could ask him about many topics, they lacked the courage to ask him about

the origins of his wisdom.

One day, after many years spent in question and wonder by the villagers, a small child

approached the philosopher and asked, Great Philosopher, from where do you gain your


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wisdom? He answered simply, I use the leaves of a bush growing throughout the hills

surrounding the village. I sit by the hot springs and let the dried leaves sit in the water.

This drink gives me strength. It wasknown from thereon, that tea was the origin of his

wisdom. The villagers followed his guidance and learned much from the hot drink that

gifted them with great strength and health.46

After his story, the man in the coffee shop stood up and left. The simplicity of his story

baffled and encouraged me. The authenticity of the story did not matter. However, his lesson

did. When asked about the project, I relayed my findings and objectives. His response was

simple. His indirectness left many open questions, yet he sufficiently shared what wisdom he

wished to impart. Though I cannot state his intentional lesson with certainty, I believe his lesson

is simple. In theory, I believe he was opening up the world of Chinese culture. Indeed, he

shared a historical story, but gave it through the perspective of longevity. Tea is rooted in

Chinese culture, and despite the influence of coffee on the young generations, tea, as a Chinese

beverage, will not disappear.47

Modernization & Westernization

Up until this point, I have combined, fatally and navely, two extremely different terms.

Traveling the Silk Road, I realized my mistake while in route to Kazakhstan. This mistake

navely combines the definitions of modernization and westernization. Often, the nave

Westerner confuses the two terms. Regularly, I am under the impression that modernization is

westernization. It is not; they are two entirely separate terms. This study must approach and

examine the relationship of coffee to China and the traditional Chinese completely differently.

46See Appendix 48.47Ibid.


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During the 1980s and 1990s, corporations from Taiwan and southern provinces in China

realized that the only way to market coffee to the Chinese would be to alter the product in a way

that appeals to the target markets culture.48

Marketers, in every industry throughout the world,

use this simple method. Appeal to the target audience is the first and most important aspect of

marketing a product to a population. The intention is not to mold the market or culture to the

product, but to accustom the product in a way that fits the culture. Coffee was altered in order to

introduce it to a market that had zero experience with the Western beverage. Even though the

root of the beverage narrows to Western countries, this does not mean that the globalization of

the product is due to "westernization." Furthermore, a countrys modernization does not mean

that it is influenced by the western world. In fact, this mentality is entirely wrong when applied

to coffee in China. The Chinese are not going to change to coffee; coffee will mold to fit the

Chinese. Displaying this realization, already the beverage is transforming to fit the culture. The

desire for a food product that is sweet overpowers the desire for a bitter product. This realization

connects to an even deeper concept of identity and culture.

As expressed in the parable above, Chinese culture has existed for thousands of years.

Modernization occurs in China, but the vast size of the Chinese population has proven to

influence and hijack surrounding cultures and societiesnot vice-versa. Coffee will not alone

transform a culture, nor does it have the ability to influence one to drop traditiontea, in Chinas

case. For a culture without a strong sense of identity, it is possible that a beverage or idea could

mold society into believing a concept different from what is culturally or regularly acceptable.

Culture is only as powerful as the belief system that supports it. Regarding the Chinese, coffee

shops proliferate throughout the country with each passing year. As the country modernizes, it

48Alec Ash, What Do Chinas Best & Brightest Drink, Coffee or Tea?


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forces the coffee industry to alter its business plan to progress and help drive the economy

forward.

From this realization, one could assert that the Chinese are not the influenced audience,

but the influencer. Culture is a fundamental element of Chinese identity. It has existed and

evolved for thousands of years. Thereby, this analysis disproves the previous hypothesis and

moves to modify the concept of what coffee is in China. Chinese coffee is foreign and

completely dissimilar to the Wests depiction of the hot beverage. Chinese coffee is becoming

popular in China, and while the Western coffee culture attempts to progress with education of

brewing techniques and appreciation for the coffee process, the Chinese already run with their

popular beverage that is quickly achieving profit. In this way, China takes the product and alters

it to accommodate the target audience. In the future, I suppose a question to consider is if China

then turns the product around to market it to the world. The thought that Chinese coffee, an

entirely new product disconnected to Western coffee, could become a product sold back to the

world would not only identify the product as Chinese, but also conclude that the Chinese found a

way to make the concept profitable.

In conclusion, the important distinction between modernization and westernization has

led this project to disprove the previous hypothesis and assert that the Chinese will not leave the

established tea culture, but cultivate a popular beverage known by this project as Chinese

coffee.

KazakhstanContrasting greatly from mainstream China is Kazakhstan. Sharing Chinas western

border, Kazakhstan acts as the silent neighbor seeking westernization more directly from Europe

than any other part of the world. Recently, President Nasarbyev achieved reelection as president,


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and continued his efforts to build a sizable economy and a developed nation. As the final state to

break free from the Soviet Union, Kazakhstan has struggled to establish an identity. Regardless,

I believed I would find an established coffee culture. Immediately, I was proven wrong, yet

again. The coffee culture exists in theory, but not in actuality. While cafes exist throughout

Almaty and parts of Astana, the coffee industry has yet to evolve in the nation. Similarly, to

China, Kazakhstan's urban and rural environments differ greatly. Coffee shops do not

necessarily exist in rural Kazakhstan. The concept of coffee has spread to the rural regions in the

form of instant coffee; instant coffee that is transported from China.49

From various interviews I conducted in Kazakhstan, I was not surprised to find a coffee

culture imitating the quick infrastructure constructed in Kazakhstan. The President is set on

building Kazakhstan into a great country respected throughout the world, but the people cannot

keep up with the efforts to modernize. As my interviews in Almaty suggest, the espresso

machines are new and the baristas using them have little to any formal training. On the outside,

the coffee culture appears to be thriving; but in actuality, the culture is growing similarly to

China. Instant coffee satisfies the tastes of the Kazakh and Russian domestic citizens, but exists

to accommodate the hopes of developing a tourist industry from the West. The only truly

surprising finding from Kazakhstan with regard to coffee was that the nation annually imports

European culture and business practices, but transports instant coffee in from China to fill in the

gaps in the infrastructure. Where there are not cafes, there exists instant coffeeChinese

instant coffee with the majority of the instant mix consisting of sugar and non-dairy creamer

additives.50

49See Appendices 41; 42; 43; 44; 45; 46; 47; 58; 59 & 60.50See Appendices 10 & 60.


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As far as Kazakhstan is concerned, the future of the coffee industry depends on the major

cities. Kazakhstan has yet to fully understand what coffee is, nor has any desire to cultivate a

coffee culture without foreign pressure.

Conclusion

Before I traveled to China, I asserted that the Chinese culture is influenced by

westernization and that coffee is a part of the driving force to modernize China. I even went as

far to assert that coffee was intimately intertwined with the concept of capitalism and that coffee

was one of the determining factors aiding the growth of capitalism in China. In defense of the

theory that coffee helps capitalism grow in China, is Professor of Economics Alec Ash from

Peking University in Beijing. He examines this idea and writes that coffee and Starbucks

entrance into the Chinese economy cannot be left off the list of capitalist determinants in

China.51

While he may be correct, my research led me to discover the naivety of my initial

preconceptions, and the complete inaccuracy of my initial theories of China and coffee.

The journey this project illustrates is one of how damaging misconceptions can be and

how perspectives can construe our view of situations, concepts, people, and ultimately, cultures.

I misconstrued the definitions of both modernization and westernization in a way that allowed

my research to continue in a manner that failed to uncover the true environment coffee has

influenced in China. The fact that China modernizes with unbelievable levels of growth does not

mean that westernization is to credit. Thus, westernization is not the sole reason for the growth

of the coffee culture in China.

Indeed, to be blind to the role Westernization plays in developing the coffee industry in

China is wrong as well. Nevertheless, to fall prey to the misconception that westernization is the

51Alec Ash, What Do Chinas Best & Brightest Drink, Coffee or Tea?


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sole factor driving the coffee industry in China is a construed lens that must be removed. In

order to interview and collect information to discover the true factor influencing Chinese society,

the misconception, or arrogance, governing the collection of information must first be eradicated.

While I went about conversing with the target audience in this manner, I interpreted the

information collected in the way I saw best fit. This would have led the analysis down a

completely different path, filled with inaccurate conclusions. Instead, when I realized this

method was causing me failure with analyzing the interviews and observations collected, I was

able to change my perspective and open my thought to other possibilities. The true analysis of

the data I collected materialized within days of this realization. While I struggled to identify the

subsurface evolution occurring to the Chinese culture, I failed to see the true signs connected to

coffee.

Coffees entrance to China can be attributed to westernization and the influx of Western

thought to China by way of missionaries in Shanghai in the early 19th

century. However, the

growth of the industry is not solely or even mostly due to westernization. Instead, the Chinese

develop the industry in a manner they see best fit. As the analysis uncovered, coffee needed to

transform to suit Chinese culture and society. While Starbucks and other international

companies become popular in China, the surface theory is that westernization drives the

popularity of the beverage and brands. However, the truth requires a deeper analysis and

perspective. Yes, on the surface, the brands drive the coffee to popularity with the students and

younger generations. Yet, the Chinese have already altered the culture to allow it to thrive

within China. Coffee is only in the beginning stages of evolving into a profitable and prosperous

industry. The prosperity of the coffee culture in China depends on the required transformation

and fit to the Chinese culture.


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Western coffee culture in the future? Is it possible that the Chinese product, in my opinion,

could negatively affect the Wests traditionalcoffee culture?

To close, the most important finding of this project may actually be one unforeseen. I

believe the evidence and journey through this project emphasizes the notion that one must strip

away initial preconceptions of a culture and shed any thoughts that might impede

groundbreaking findings. In my case, I needed to shed the arrogant all-consuming thought that

westernization was automatically the sole reason administering modernization and the spread of

coffee culture in China. Fundamentally, we must all fight this misconception to perceive fully

the world around us. Only then can we ascertain common ground from differing viewpoints, and

move forward globally towards the future.


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Appendix #1

Owner, French Cafe, near Friendship Store, Beijing, China

Date of Interview (2011): April 4, 2011

Background: I found this cafe almost on arrival in Beijing. What surprised me about the cafe

was that it offered free Wi-Fi, was personally run as a family business, and was almost

completely in the French style. This accurate display of the French cafe was remarkable seeing

as I haven't run across another like it.

I was frequently at this cafe and got to know the staff quite well. On my first day in the cafe, I

interviewed the owner who knew a good amount of English. He talked about his location and

how the cafe got started. Though the cafe hasn't been open for long, they have a strongfoundation of regulars that comes in from the surrounding embassies. With the friendship store

nearby, a lot of foreigners enjoy the opportunity to have a real cup of coffee after some shopping.

It's been less than a year since he opened the gelato stand in the cafe, and while it has yet to make

a profit, foreigners enjoy the chance to have real ice cream as well.

He talked about pricing and how he is able to maintain a price structure similar to Starbucks

which is only around the block. Foreigners are willing to pay the amount for coffee and so it

stays high. Chinese do not complain about the prices, though only government and various

officials are normally seen at the location. It is popular for foreigners and ambassadors, but I

gathered that not too many Chinese come to the cafe. Over my time there, this tended to be more

true than false.

We also talked about current trends in the industry, and he commented on the fact that his market

is normally made up of the different embassies in the region. When Chinese wish to have a cup

of coffee, a gourmet place is not necessarily where they start. McDonald's is doing well in this

regard.

He spoke about the wifi and was surprised when I told him about the regulation. He refuses to

comply as long as no one talks. At one point, I helped him with resetting the internet connection

to allow PC users to access the internet. Grateful for the help, he offered to share a cappuccino

with me. This friendship allowed us to branch into other topics, but I won't forget the

observations he shared with me on his customers and his business.


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Appendix #2

Owner, Tiajin Teahouse, near Friendship Store, Beijing, China


Background: I walked next door from the French Cafe out of mere interest for internet. I was

met with a fluent Chinese owner that was excited to find out about the coffee market as a

possible factor to her decreased sales. I don't feel that I was help with coffee but she shared good

information on the tea culture.

Tea culture comes from a vast history, interwoven with China's Tea is a fundamental part of the culture There are many different types of tea Different seasons call for different teas but the public is conditioned into believing that

hot green tea is appropriate for all seasons

Tea should be the drink of choice as it promotes health Coffee causes major stomach problems and should be avoided Stocking up on tea is a must, no matter the quality Tea is always hospitable with visitors Tea is becoming a generational problem

o less youth choose to drink teao more adults than youth visit the teahouseo (implied indirectly that this could also be a matter of political views)o Cultural depth of tea lives on in the individuals and families that hold onto old

China


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Appendix #3

Manager, Starbucks, Outlet Stores near Beigongda, Beijing, China


Background: This Starbucks location was the first coffee shop I was able to visit while staying

in Beijing. When I finally talked to the manager, I was somewhat disappointed with the lack of

knowledge he had on the roasts he was serving. I suppose this could also be because of the

language barrier because his English wasn't excellent but enough to have a conversation with me.

I also suppose this could be because he hasn't had the need to know his products in their native

English language.

1. How long have you worked at Starbucks?a. For four years now as a baristab. Two years as a manager

2. When did you begin making coffee?a. In college at Beigongda, began as a day job.b. Never liked coffee before working at Starbucksc. Chose to apply because it paid well for business majors

3. Have you had any formal training as a barista?a. Every year, Starbucks has a formal training on new productsb. Initial training and tests to become a barista for Starbucks

4. Do you alter the average ingredients to the different coffee beverages you make?a. (Confused by the question) No, the drinks are made the way Starbucks requiresthem.

5. Have you run into any difficulties with domestic or foreigners with coffee?a. Only domestic citizens.b. Chinese are still being introduced to coffee as a beveragec. Foreigners normally know about the beverage

6. Where does your cafe purchase its coffee bean?a. Shipped in by Starbucks, but the shipments flow through Shanghai


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7. Do you see the coffee industry growing in the future? If so, do you believe more cafeswill pop up around the city and region?

a. More locations are opened every yearb. More coffeehouses can be seen all over the city and more people are coming intothe cafe

c. Sales increase with every passing yeard. The market is only in its beginning stagese. Has the potential to grow much larger

Appendix #4

Manager, Starbucks, near Friendship Store, Beijing, China


Background: I was drawn to this Starbucks by the Wi-Fi and found out that the location offered

free wifi, no information needed. Unlike the other locations, this Starbucks doesn't require its

customers to sign up or have a cell phone registered in China. When I asked the manager about

this, she had no comment and pretended to not understand.

1. How long have you worked at Starbucks?a. For five years nowb. Worked for different locations and was relocated to this branch to manage

2. When did you begin making coffee?a. As a college studentb. Interest in coffee came from friends who liked the taste of the drinkc. Soon she was into the drink to and wanted to learn more about it

3. Have you had any formal training as a barista?a. Every Starbucks barista goes through a process of training.

4. Do you alter the average ingredients to the different coffee beverages you make?a. Yes, the ingredients are altered slightly: not as much coffee, different kind of milktaste than what is used in the states

5. Have you run into any difficulties with domestic or foreigners with coffee?


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a. Only when someone is introduced to coffee do they want to know more about theprocess and coffee bean

6. Where does your cafe purchase its coffee bean?a. Starbucks ships in the beans through different port cities


a. Starbucks is growing and the copycats surface more and more every year. Thekey to this growing culture will be finding a competitive advantage over the other

coffeehouses appearing. Starbucks is finding ways to make them more popular in the

Chinese market, and many of the alterations are in the food choices and beverages

advertised.

Appendix #5

Shift Manager, Atanu Restaurant, Shanghai Signal House, Shanghai, China


Background: With a group of friends, we visited this cafe. While they were looking at the

skyline of Shanghai, I was able to sit in with the shift manager and ask a couple questions during

the slow afternoon hours.

He didn't tell me anything more than what I'd done research wise on Shanghai. Outside of the

history of coffee in Shanghai, the new information pinpointed the Chinese attitude towards

coffee from the early beginnings in 1920 and again in the 1980s. Shanghai still boasts the largest

number of roasters in China and number of new coffee shop concepts. The market is rapidly

growing and everyone wants to be a part of it.

He talked about the Chinese viewpoint of coffee and how Shanghai feels this has become a

culture of its own. Originally, the West brought in coffee, but since then, itsbecome its own

entity. The coffee companies have taken coffee in a new direction to accommodate the palette

and interests of the Chinese. As if to say China was changing coffee, here was an owner of one

of the most desired coffeehouse locations saying that the Chinese had taken it on themselves to

create a new coffee line. The interesting thing was that he also talked about the Western

interpretation of coffee and that the slow, leisurely experience of coffee is not so much the case

in China. In China, there are different crowds of people that want coffee at different paces.


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They'll order it to go, or sit down. Never for extended amounts of time though, like the West.

His comments made me wonder if this was exclusive to Shanghai, or if this was the culture being

exported to the rest of the country. Only time would tell.

Appendix #6

John, Owner & Founder, New Zealand Cafe, near Beigongda, Beijing, China

Date of Interview (2011): May 4, 2011

Background: John was an extremely nice Chinese coffee enthusiast. His drive to accomplish

something outside of working for the government in China brought him to study graduate work

in New Zealand. Here, he caught on to the coffee culture and decided to bring it back to Beijing,

his hometown. Hoping to catch onto the students at Beigongda, he's created a coffeehouseconcept that is sure to gain popularity in the coming months.

1. How long have you worked the cafe?a. Opened its doors only a couple weeks prior.

2. When did you begin making coffee?a. Only in New Zealand, so for the past ten years.

3. Have you had any formal training as a barista?a. None whatsoever. Learned how to make coffee on his own and prefers to catchup on the industry in his own way.

4. Do you alter the average ingredients to the different coffee beverages you make?a. There's a lot of additives when compared to coffee in New Zealand. The coffeehere is different and itsalmost like a candy bar in a cup.

5. Have you run into any difficulties with domestic or foreigners with coffee?a. Not yet. A lot of customers come from the surrounding apartment buildings and alot of people wander in because of the late hours. People are interested but they don't

know anything about coffee. It's normally an entirely new experience.

6. Where does your cafe purchase its coffee bean?a. Try their best to ship it in from around the world, including New Zealand brands.Most of the coffee ships into a roaster in Shanghai before he gets it up in Beijing.



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a. He hopes that it will continue to grow and raise awareness. He's already seeingthe positive part of having a cafe in an area that does not particularly know coffee. The

major tourist attractions are building more coffeehouses and the industry is growing on a

large-scale. The question will be if it can maintain the growth into the future. The drinks

are becoming popular and more people like coffee. The college students seem to be the

primary interest for coffeehouses now because of the students desire to pull late nights

without drinking a lot of tea. The students are also chasing what is popular, and

Starbucks has made coffee very popular.

Appendix #7

Regional Manager, Costa Coffee, BHG Market Place, Beijing, China

Date of Interview (2011): May 4, 2011

Background: I was introduced to the manager early in my visit to the cafe. It was the only

location in the designer outlet marketplace to offer free Wi-Fi and when I asked for the

password, I realized I was talking to the regional manager for Costa Coffee in Beijing. When he

was done with business concerning the cafe, he shared insights into the growing industry and

plans about what Costa has in store in the coming years. I was incredibly grateful for the

opportunity to meet with him.

A lot of our conversation revolved around the growing industry in China and how coffee has yet

to truly reach past the port cities in China. The industry is fairly young and still developing. Alot of alterations occur with the ingredients in order to appeal to the Chinese. A lot of resources

go into the development of the industry, and the understanding of the Chinese target customer.

The future of the industry centers on understanding the Chinese customer and how to appeal to

the palette of the consumer. When this is done, coffee will have its place in the selection of

beverages available and preferred by the Chinese market.

Much of the discussion involved the Costa company. Expanding into China was a large step for

the international company, but the market was already open and for the taking.

While we covered many topics on coffee production, resource flow for the company and the

future of the industry in China, the most imp

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McKee - China on Caffiene