With much of the Western world analyzing Chinas economic development with extreme interest, few Westerners realize

the impact China has with altering product production and consumption to suit Chinese characteristics and customs. This paper analyzes the growth of the coffee industry in China and the effect this new industry has on the traditional tea culture. Ultimately, this project concludes that one must remove the lens of ignorance to perceive properly the implications of a new coffee industry and how the Chinese have purposefully altered the Western concept of coffee to adapt to the Chinese customs and palette.

China on Caffeine
The Entrance of Coffee by Westernization
Brandon McKee Prof. John Williams Spring 2011

McKee 1

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
1 2

See Appendices 31 & 58. Nicky 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/.

McKee 2 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

Maura 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-economycoffee.html. 4 Ibid. 5 Ibid.

McKee 3 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.

Geoff 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. 7 Maura Cunningham, "China's Coffee Culture."

McKee 4

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

McKee 5 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-8 9

Nicky Dawda, "Carrying Mystical Tea? Maybe It's Best to Be Discreet." Jeffrey Wasserstrom, "Sipping Starbucks, From Bloomington, Indiana to Shanghai, China," World Hum, January 30, 2008, accessed March 5, 2011, http://www.worldhum.com/features/speakerscorner/sipping_starbucks_from_bloomington_indiana_to_shanghai_20080128/.

McKee 6 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 would be 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 freemarket capitalism and China.

10 11

Jeffrey Wasserstrom, "Sipping Starbucks, From Bloomington, Indiana to Shanghai, China." Ibid. 12 Alec 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/. 13 Nicky Dawda, "Carrying Mystical Tea? Maybe It's Best to Be Discreet ." 14 Maura Cunningham, "China's Coffee Culture."

McKee 7 Arguably, Capitalism is taking the global market by force. The drive to become selfsustaining 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

15 16

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

McKee 8 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 coffeedrinker 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
18 19

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

McKee 9 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.

Methodology
This 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

McKee 10 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

McKee 11 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.

McKee 12 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.

McKee 13 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.

Data
Formal Interviews:
1. 2. 3. 4. 5. Appendix 1: Appendix 2: Appendix 3: Appendix 4: Appendix 5: Owner, French Cafe, Near Friendship Store, Beijing, China Owner, Tianjin Teahouse, Near Friendship Store, Beijing, China Manager, Starbucks, Outlet Stores near Beigongda, Beijing, China Manager, Starbucks, Near Friendship Store, Beijing, China Shift Manager, Atanu Restaurant, Shanghai Signal House, Shanghai, China 6. Appendix 6: John, Owner & Founder, New Zealand Cafe, Near Beigongda, Beijing, China 7. 8. 9. Appendix 7: Appendix 8: Appendix 9: Regional Manager, Costa Coffee, BHG Market Place, Beijing, China Branch Manager, Starbucks, Xi'an, China Kevin & Sheryl Gilley, The Oasis Cafe, Dunhuang, China

10. 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. 3. 4. 5. Appendix 12: Gealy, English Association of BJUT, Beigongda, Beijing, China Appendix 13: Employee, McDonald's, Wanfujing, Beijing, China Appendix 14: Weekend Manager, Ming Teahouse, Wanfujing, Beijing, China Appendix 15: Eileen, English Association of BJUT, Beigongda, Beijing, China

McKee 14 6. 7. 8. 9. Appendix 16: Jared, English Association of BJUT, Beigongda, Beijing, China Appendix 17: Cathy, English Association of BJUT, Beigongda, Beijing, China Appendix 18: Barista, Starbucks, Shanghai, China Appendix 19: Hostess, Cafe Francais, Shanghai, China

10. Appendix 20: Manager, Hotel Cafe, Grand Gongda Jiangou Hotel, Beijing, China 11. Appendix 21: Employee, McDonald's, Near Outlet Stores, Beijing, China 12. Appendix 22: Feng Laoshi, Beigongda University Professor, Beijing, China 13. Appendix 23: Liang (Megan), English Association of BJUT, Beigongda, Beijing, China 14. Appendix 24: Turing, English Association of BJUT, Beigongda, Beijing, China 15. Appendix 25: Dorothy, English Association of BJUT, Beigongda, Beijing, China 16. Appendix 26: Sally, English Association of BJUT, Beigongda, Beijing, China 17. Appendix 27: Eileen, English Association of BJUT, Beigongda, Beijing, China 18. Appendix 28: Troy, International Communications Course, Beigongda, Beijing, China 19. Appendix 29: Kobe, International Communications Course, Beigongda, Beijing, China 20. 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, China 23. Appendix 33: Bar Manager, Hill-Top Cafe, Near Bell & Drum Towers, Beijing, China 24. Appendix 34: Cafe Manager, Starbucks, BHG Market Place, Beijing, China 25. Appendix 35: Owner, Grandma's Kitchen, Near Friendship Store, Beijing, China

McKee 15 26. Appendix 36: Agness, Xi'an Tour Guide, Xi'an, China 27. Appendix 37: Shari, Silk Road Guide, Jiayuguan, China 28. Appendix 38: Armat, Vendor, Buddhist Ancient Temple, Tu La Fan, China 29. Appendix 39: Risa, Local Guide, Tu Lan Fan, China 30. Appendix 40: Barista, Coffee stand in Tu La Fan Hotel, Tu La Fan, China 31. Appendix 41: Seejian, Cafe Manager, Caffe Segafredo, Almaty, Kazakhstan 32. 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, Kazakhstan 35. Appendix 45: Maria, Tour Guide, Karlag Gulag, Karaganda, Kazakhstan 36. Appendix 46: Maria, Manager, Beach Club, Khan Shakra, Astana, Kazakhstan 37. Appendix 47: Jaren Shaw, Barista, Hargut Club, Khan Shakra, Astana, Kazakhstan

Personal Observations:
1. 2. 3. 4. 5. 6. 7. 8. 9. Appendix 48: Beijing, China Appendix 49: Shanghai, China Appendix 50: Anze County, Shaanxi Province, China Appendix 51: Teng Cheng, Shaanxi Province, China Appendix 52: Hao Di Po, Shaanxi Province, China Appendix 53: Xi'an, China Appendix 54: Jiayuguan, China Appendix 55: Duahuang, China Appendix 56: Tu La Fan, China

McKee 16 10. Appendix 57: Urumqi, China 11. Appendix 58: Almaty, Kazakhstan 12. Appendix 59: Karaganda, Kazakhstan 13. 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 (770BC 450 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
20

See Appendix 4.

McKee 17 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 (220 256 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 (618 907 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,

21 22

See Appendix 14. See Appendix 4. 23 See Appendix 14.

McKee 18 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

24

See Appendix 14.

McKee 19 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
25 26

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

McKee 20 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 coffeedrinker 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
27 28

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

McKee 21 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

29 30

See Appendix 32. See Appendix 5. 31 See Appendix 22.

McKee 22 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.
32 33

See Appendix 22. See Appendix 5. 34 See Appendix 4. 35 See Appendix 37.

McKee 23 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
36 37

See Appendix 48. See Appendix 49.

McKee 24 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
38 39

See Appendix 7. See Appendix 1.

McKee 25 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
40 41

See Appendices 6; 36; 38; 39; 53; 54; 55; 56 & 57. See Appendix 53.

McKee 26 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
42 43

See Appendices 11; 12; 15; 16; 17; 23; 24; 25; 26; 27; 28 & 29. See Appendix 9.

McKee 27 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

44 45

See Appendices 31 & 58. See Appendices 3; 4; 8; 18; 34 & 41.

McKee 28 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. Thousands of 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

McKee 29 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 was known 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.

46 47

See Appendix 48. Ibid.

McKee 30 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

48

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

McKee 31 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.

Kazakhstan
Contrasting 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,

McKee 32 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

49 50

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

McKee 33 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
51

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

McKee 34 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.

McKee 35 Therefore, to answer the questions posed in the introduction to this study, the coffee culture is not yet able to, nor being allowed to compete with the established tea culture. Tea is a traditional and fundamental part of the Chinese culture. Coffee has yet to evolve in a way that poses a possible threat to the established tea culture. In the distant future, it may be possible that the youth lose the roots of tea and choose to allow the growing coffee culture to evolve. The coffee culture in China is a generational issue as the youth thrive on the popularity of the beverage and the elderly hold on to the tradition of tea. On a much broader level, to understand the possible cultural impacts of the coffee industry, further studies would need to be conducted that specifically focus on the evolution and possible effects of the coffee industry on the Chinese culture. In conclusion, the data and interviews collected from the target audience culminate to disprove the original hypothesis of this paper. This paper asserts that the Chinese do not believe coffee will replace tea as a cultural beverage, but will continue to cultivate a new type of coffee that is sweeter and tailored to the Chinese palette. Furthermore, this new coffee line of beverages sold in China is termed Chinese coffee as it is distinctly different from the Western styles of coffee. In this way, I will leave this topic with a few comments directing further research. One question that could be researched builds from the concept that the Chinese intentionally alter products for purposes of establishing a competitive advantage. The research would call to question whether the Chinese intend on selling the new coffee back to the West. As is the current case in Kazakhstan, the country already imports instant coffee that is distributed to the internal structure of supermarkets. It is possible that China will turn the product back on the world, but is it also possible that the Chinese will act as the middle user, thus affecting the

McKee 36 Western coffee culture in the future? Is it possible that the Chinese product, in my opinion, could negatively affect the Wests traditional coffee 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.

McKee 37

Bibliography
Ash, Alec. What Do Chinas Best & Brightest Drink, Coffee or Tea? Enovate China. Accessed March 5, 2011. Last modified November 6, 2009. http://enovatechina.com/blog/. Colvin, Geoff. The Worlds 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.ht m?iid=EAL. Cunningham, Maura. Chinas Coffee Culture. Forbes. Accessed March 4, 2010. Last modified April 28, 2010. http://www.forbes.com/2010/04/28/starbucks-china-consumers-marketseconomy-coffee.html. Dawda, Nicky. Carrying Mystical Tea? Maybe Its Best to Be Discreet . New York Times, July 6, 2010. Accessed March 5, 2011. http://www.lexisnexis.com/. Lee, Hope. Coffee Brews a Future in China? Franchiseek International. Accessed March 4, 2011. Last modified September 13, 2004. http://www.franchiseek.com/Market_Trends_Coffee_China_1004.htm. Wasserstrom, Jeffrey. Sipping Starbucks, From Bloomington, Indiana to Shanghai, China. World Hum, January 30, 2008. Accessed March 5, 2011. http://www.worldhum.com/features/speakerscorners/sipping_starbucks_from_bloomington_indiana_to_shanghai_20080128/.

McKee 38

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 strong foundation 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.

McKee 39

Appendix #2
Owner, Tiajin Teahouse, near Friendship Store, Beijing, China Date of Interview (2011): April 4, 2011 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 tea o more adults than youth visit the teahouse o (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

McKee 40

Appendix #3
Manager, Starbucks, Outlet Stores near Beigongda, Beijing, China Date of Interview (2011): April 14, 2011 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. b. 2. For four years now as a barista Two years as a manager

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

3.

Have you had any formal training as a barista? a. b. Every year, Starbucks has a formal training on new products 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 requires them.

5.

Have you run into any difficulties with domestic or foreigners with coffee? a. b. c. Only domestic citizens. Chinese are still being introduced to coffee as a beverage 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

McKee 41 7. Do you see the coffee industry growing in the future? If so, do you believe more cafes will pop up around the city and region? a. More locations are opened every year

b. More coffeehouses can be seen all over the city and more people are coming into the cafe c. d. e. Sales increase with every passing year The market is only in its beginning stages Has the potential to grow much larger

Appendix #4
Manager, Starbucks, near Friendship Store, Beijing, China Date of Interview (2011): April 18, 2011 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. b. 2. For five years now Worked for different locations and was relocated to this branch to manage

When did you begin making coffee? a. b. c. As a college student Interest in coffee came from friends who liked the taste of the drink 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 milk taste than what is used in the states

5.

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

McKee 42 a. Only when someone is introduced to coffee do they want to know more about the process and coffee bean 6. Where does your cafe purchase its coffee bean? a. Starbucks ships in the beans through different port cities

7. Do you see the coffee industry growing in the future? If so, do you believe more cafes will pop up around the city and region? a. Starbucks is growing and the copycats surface more and more every year. The key 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 Date of Interview (2011): April 17, 2011 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, its become 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.

McKee 43 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 coffeehouse concept that is sure to gain popularity in the coming months. 1. How long have you worked the cafe? a. 2. Opened its doors only a couple weeks prior.

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 catch up 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 coffee here is different and its almost 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 a lot 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.

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

McKee 44 a. He hopes that it will continue to grow and raise awareness. He's already seeing the 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. A lot 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 important insight I gained from him questioned one major issue in my initial thoughts of the project. He made the point that while the coffee companies running to China are Western based, that doesn't mean that westernization is

McKee 45 influencing the culture in China. Furthermore, it is the overwhelmingly wrong correlation that westernization equals modernization. He said that the most important part of my research should focus on disproving this thought that the two concepts are related in China. His final warning: China is more capable than one would think. It has the ability to change thought and action within its borders. Just because a concept, product, or plan enters China, doesn't mean it will pan out that way. Fascinating and groundbreaking, I left the cafe with the realization that my research and original intentions could be entirely wrong.

Appendix #8
Branch Manager, Starbucks, Xi'an, China Date of Interview (2011): May 9, 2011 Background: This Starbucks was located below a McDonalds near the center of the city. The cafe was larger than average and was open from 9:30am-11pm each day of the week. When I approached the counter, I noticed Starbucks' CEO Howard Schultz's recent book. Asking for an English addition, I received a blank stare and was directed to the manager. He told me that I would need to purchase the book back in the United States. Our conversation opened up to the project and he was willing to sit briefly for an interview before the branch closed. 1. How long have you worked at Starbucks? a. 2. For six years, two have been as a manager

When did you begin making coffee? a. b. During school for study purposes Parents and friends all enjoyed coffee

3.

Have you had any formal training as a barista? a. b. c. Every Starbucks Barista is trained before working on the job Hired primarily for his background of working with machinery Initially he was an asset for fixing the equipment should something go wrong

4.

Do you alter the average ingredients to the different coffee beverages you make? a. Starbucks figured out early on that an alteration was needed for profits to be made

McKee 46 b. Mainly just a difference in the amount of milk used in the beverages

c. Foreigners are known to complain about the milk used in the drinks--normally that the milk is sour 5. Have you run into any difficulties with domestic or foreigners with coffee? a. b. c. 6. Mainly from foreigners with the milk Is not a destination for local Chinese because of the location Most customers know what they are purchasing

Where does your cafe purchase its coffee bean? a. Shipped in by Starbucks through port cities--origins unknown.

7. Do you see the coffee industry growing in the future? If so, do you believe more cafes will pop up around the city and region? a. Xi'an has become a hot market for coffee shops moving into the city. With more tourists appearing each year, coffee shops have been able to buy out teahouse locations and replace them with cafes. This is occurring primarily within the city walls.

Appendix #9
Kevin & Sheryl Gilley, The Oasis Cafe, Dunhuang, China Date of Interview (2011): May 11, 2011 Background: To the regular passerby, the Oasis Cafe would not have demanded a second look. To the individual seeking a real cup of coffee in western China, one might blink in disbelief. Hidden in a renovated marketplace is a gem of a cafe. Run by an American couple, the cafe concept took a year to make reality with all of the loopholes the local and national government has created for foreign entrepreneurs. The cafe opened three years ago and has slowly grown in popularity. I was drawn into the cafe by the aroma of the brewed coffee and the street presence. The presence was unlike anything I'd seen in China, and I quickly found that it was indeed foreign run. Kevin and Sheryl were almost as excited to meet an American as I was about their passion to spread coffee into the rural regions of China. What originated as a couple questions, turned into a three-hour conversation over a wonderful vacuum press cup of blue mountain blend coffee. The following is a brief account of what we covered while in conversation.

McKee 47 1. Questions ranging from politics, culture, Chinese business practices, US world events, tea culture, and coffee 2. Talked about the business and how they got started in the region

My Personal Blog Account of Conversation with American Couple: As I walked down the street, I passed a cafe. However, this was unlike any cafe I'd seen outside of Shanghai. The walls had stucco--clear sign it was not Chinese owned--and the inside was decorated in a Colorado modern cafe style setting. Of course, my interest peaked and I entered the cafe. I thought I was approaching the manager when an American woman stood up to greet me from a side table. My initial reaction was that she wanted to speak English, though she sat with a group of English speaking foreigners. Come to find out, she and her husband own the cafe and have been open for three years. Completely thrown off my game, I unloaded a number of questions and let her know that Im studying the growth of the coffee culture in China. Wed only been talking for five minutes when Laura and Sam entered the cafe and were caught by the conversation they were witnessing unfold. I met her husband, noticed it was only a little bit after 8, and decided to order a small vacuum pot for the three of us. Sure enough, the owners both joined us as I'd hoped. What unfolded next truly still has me in awe. Talking about their life in China, our topics primarily covered coffee. Primary resources for-and other topics like politics, sociology, business practices, and local lifestyles and customs. The wealth of information they'd accumulated from living in the area was remarkable. Furthermore, the drive and ability to introduce a product like coffee to an area that wouldn't know to grind the beans before sending water through it, is all but inspiring. For three hours, we talked at depth and length on every topic either group was interested in. I was in heaven with the conversation and the freshly ground Blue Mountain Coffee they'd brewed in the vacuum pot. It was one of the most fascinating conversations I'd had with someone on the Chinese culture. As I said above, before I knew it, they were due to close. I felt I'd dissed them by tasting their house beans and not having it in a cup of espresso, so to finish the night I had to leave with one. I wasn't disappointed. Conversations like this put things in perspective. Here we've met a couple with three children. Their children are completely growing in the culture, to the point where there aren't any cultural barriers. As foreigners, they run the only true coffee shop in the

McKee 48 area. They are braving the final frontier of China and attempting to bring a drink that much of the population regards as the drink version of their hobo soup. Yet at the end of the day, their business is on the rise, and their children are getting the best education of pure immersion in a culture different than American. Their view of it? Couldn't have made a better decision.

Appendix #10
Ruslan, Bar Manager, Noodles Restaurant, Almaty, Kazakhstan Date of Interview (2011): May 26, 2011 Observation: The bar manager was very rude at first, yet warmed to me with what little Russian I could muster. By the end of our discussion, it was if we were long lost friends. Breaking the language barrier was critical to allowing the discussion to progress. 1. How long have you worked at Noodles? a. Worked for the cafe and bar section of the restaurant for four years b. Chose to apply after college and worked in the general restaurant for seven years total. 2. When did you begin making coffee? a. Grew up with coffee and has always enjoyed the smell b. Began to make coffee as a teenage in college c. Never saw much of an industry in Kazakhstan for the drink d. Parents thought it was foreign and useless e. Preferred a basic flavor, with small amounts of cream f. Began truly making the drink at the cafe four years ago 3. Have you had any formal training as a barista? a. Never been formally trained b. Enhanced the coffee bar while in managers position c. Helped restaurant purchase better equipment 4. Do you alter the average ingredients to the different coffee beverages you make? a. The average customer enjoys more cream with the coffee drink b. Sugar is normally on the tables and not monitored in relation to coffee

McKee 49 c. No need to alter ingredients, customers do that themselves to serve their tastes 5. Have you run into any difficulties with domestic or foreigners with coffee? a. The only difficulties are with language barriers b. Domestic people are used to coffee in Almaty c. Rural regions may be a completely different story d. Serves a lot of English speakers on the coffee beverage side 6. Where does your cafe purchase its coffee bean? a. The cafe serves Gloria Jean's which is imported from Illinois in the USA 7. Do you see the coffee industry growing in the future? If so, do you believe more cafes will pop up around the city and region? a. The industry is already growing in the urban areas b. Almaty is booming in the industry and it is common to see hookahs in the nightlife cafes c. More shall arrive as it becomes more popular d. The industry has grown dramatically in the past 10 years, though coffee has been in Kazakhstan for a considerably longer period of time

Appendix #11
Michelle Wang, President of English Association of BJUT, Beigongda, Beijing, China Date of Interview (2011): April 1, 2011

Location Description - English Corner #1: Meeting with members of the English Association, on Beigongda in Canteen #2 (minimum of 50 Chinese students for period of 2 hours). Michelle is the President of the English Association at Beigongda. She's studying business and finds coffee fascinating. Her excitement with the drink initially took me off guard. She was enthusiastic and excited about hearing what I'd uncovered. Of course, I wasn't able to give her much beyond what research I'd gathered online. 1. 2. 3. Do you like coffee? a. Drinks coffee regularly during the week. How often do you drink coffee? a. 3-4 times a week and more during finals. Why do you like coffee?

McKee 50 a. The taste is something her parents introduced her to when she was much younger. 4. What is your favorite coffee beverage? a. A latte from Starbucks with a lot of cream and sugar. 5. Do your friends like to hang out at cafes? a. Yes, they go a lot and will normally study there. They are mainly social science majors. 6. Do your parents and/or grandparents drink coffee? a. One parent does, but the other does not. She drinks coffee regularly and works a fair amount throughout the week. Grandparents are completely against the drink. 7. Do you see the coffee industry growing in the future? If so, do you believe more cafes will pop up around the city and region? a. Yes, definitely. Much more happening in Beijing soon.

Appendix #12
Gealy, English Association of BJUT, Beigongda, Beijing, China Date of Interview (2011): April 1, 2011

Location Description - English Corner #1: Meeting with members of the English Association, on Beigongda in Canteen #2 (minimum of 50 Chinese students for period of 2 hours). 1. Do you like coffee? a. Yes. 2. How often do you drink coffee? a. Not often, but usually will around finals. 3. Why do you like coffee? a. The taste is like candy. 4. What is your favorite coffee beverage? a. The cappuccino with a lot of sugar. 5. Do your friends like to hang out at cafes? a. Enjoy it, but they don't go too often. 6. Do your parents and/or grandparents drink coffee? a. Parents like coffee and grandparents have tried it. 7. Do you see the coffee industry growing in the future? If so, do you believe more cafes will pop up around the city and region? a. Yes, that is a part of Beijing and growth. We are getting more cafes each year and more opportunities to drink the coffee that is popular.

McKee 51

Appendix #13
Employee, McDonald's, Wanfujing, Beijing, China Date of Interview (2011): April 8, 2011 Employee behind the counter took the opportunity to practice his English with me and talked about the growing industry and potential market for McDonald's and other coffee selling companies.

He talked about how the cafes are new to the scene and especially new to McDonald's in Beijing. The cafe offers a wide selection at unbeatable prices. He sees a lot of younger adults wander in and order coffee. The average cup of coffee is sold with two packets of sugar and one condensed milk package. Both are normally poured in by the consumer at the counter with the packaging left for the baristas. He has had formal training by McDonald's on the machines he uses though he's been around coffee for much of his life. He was based in a city just outside of Shanghai and his parents introduced him to coffee when he was a teenager. Now he is getting a degree in engineering and working his nights to pay off extra expenses for school.

He doesn't see coffee as the path he wishes to take in life, but will appreciate the growing industry for coffee as it evolves quickly in the next couple years.

Appendix #14
Weekend Manager, Ming Teahouse, Wanfujing, Beijing, China Date of Interview (2011): April 8, 2011

I wandered into a teahouse in Wanfujing and spoke to an employee who directed me to the manager due to the language barrier.

The manager was really nice and talked to me about my project and how coffee is affecting sales at the teahouse. As a tea house manager, she lightened her load to go back to school. However, she talked about her time as head manager last year and helping with stock and sales. While she

McKee 52 cannot pinpoint the reason for the decline of sales in the last couple years, she has a number of friends that have begun drinking coffee. For a friend group in their thirties, coffee is unusual but not unheard of. She says that the drink is gaining popularity, but still nowhere near creating a new market to study for incoming and prospective coffee shops.

Nevertheless, the cafes are popping up all over the city and the teahouse is experiencing less sales as time goes on. The key to this is that the crowd is shifting. No longer do you see younger adults in the teahouse. The customer base is one of normally older individuals. This has become a potential problem for the teahouse in the long run. Should the younger generation switch to more teabags and coffee, the teahouse would not have a market to pull from.

The taste for coffee is not acquired. She argued that her friends are becoming more European and desiring the drink on the basis of major corporations coming in from overseas. As the market grows, China could witness a revolution in the beverage industry and teahouses could find themselves in the middle of a battle for the market.

Either way, the industry is growing and coffee is likely to grow exponentially in the next decade.

Appendix #15
Eileen, English Association of BJUT, Beigongda, Beijing, China Date of Interview (2011): April 14, 2011

Location Description - English Corner #2: Meeting with members of the English Association, at Beigongda in a classroom on campus (Meeting with approx. 30 Chinese students for 2 hours). Of all the students I talked to and interviewed, Eileen was a special case. She drinks coffee regularly, almost religiously as she would say. As a prelaw undergraduate, she is studying hard to one day join her parents in law and practice in her own office. She says that this will be difficult and that the job market for lawyers in China has not yet developed nor come to fruition. But she is optimistic. When I found out about her coffee habit, I was surprised to have an outlier in the way of her drinking habits and knowledge of the coffee drink.

McKee 53 To be a casual coffee drinker, would be similar to not studying for a test. She wants to know it all, for no particular reason either. She has not grown up with coffee and truly only began to enjoy the drink during college. From the day she began, she knew she wanted to have the right appliances and abilities to make her own cup of coffee in the morning. She says that she's up right when the power is turned on for the dorms and she flips on the switch for her coffee maker. Amazingly, she averages two to three cups of coffee per day. Unlike her friends, she will have a coffee any time of day and prefers it completely to tea. While she still enjoys a cup of tea, she doesn't wish to have it that often. Neither her parents nor grandparents think highly of coffee but want her to be happy and have, therefore, purchased much of her equipment. She's hoping to broaden her coffee appliances soon with more options. When she's out and about, shes always on the lookout for the next cafe. This drive is highly unusual among Chinese. She does not seem influenced by western ideals like the other students, but simply enjoys the taste and aroma the coffee provides. She says that she enjoys coffee bean from South America but couldn't tell me anything about the coffee beans.

Appendix #16
Jared, English Association of BJUT, Beigongda, Beijing, China Date of Interview (2011): April 14, 2011

Location Description - English Corner #2: Meeting with members of the English Association, at Beigongda in a classroom on campus (Meeting with approx. 30 Chinese students for 2 hours). Jared is studying for a job in the government. Though he wasn't able to tell me his major, he seemed very interested in my political science degree and one day hopes to travel to the United States. 1. 2. 3. Do you like coffee? a. No, not at all. I prefer tea. How often do you drink tea? a. A lot throughout the week, normally for all three meals a day. Why do you like tea? a. It's what he's grown up with and has at home normally.

McKee 54 4. Do your friends like coffee or tea? a. Friends like coffee, but he likes tea and they normally don't have tea when coffee is an option. 5. Do your friends like to hang out at cafes? a. Yes, all the time. Starbucks makes awful tea. 6. Do your parents and/or grandparents drink coffee? a. Not at all in any way. They prefer oolong tea. 7. Do you see the coffee industry growing in the future? If so, do you believe more cafes will pop up around the city and region? a. It's inevitable. The industry is growing and more people like coffee. There are more options for students to get coffee near the school each year.

Appendix #17
Cathy, English Association of BJUT, Beigongda, Beijing, China Date of Interview (2011): April 14, 2011 Location Description - English Corner #2: Meeting with members of the English Association, at Beigongda in a classroom on campus (Meeting with approx. 30 Chinese students for 2 hours). Cathy is studying engineering at Beigongda. As a third year, she has extensive knowledge in math and sciences. 1. Do you like coffee? a. Yes, everyone likes coffee. 2. How often do you drink coffee? a. About every night, but only at night. 3. Why do you like coffee? a. The taste is great, and its best when you can make the taste your own. 4. What is your favorite coffee beverage? a. A creamy espresso. 5. Do your friends like to hang out at cafes? a. Too expensive, but likes local cafes. 6. Do your parents and/or grandparents drink coffee? a. Father drinks coffee, and grandparents have passed on. 7. Do you see the coffee industry growing in the future? If so, do you believe more cafes will pop up around the city and region? a. The industry is growing and more young people drink the coffee around finals and for tests. It's really just for the pleasure and to study.

McKee 55

Appendix #18
Barista, Starbucks, Shanghai, China Date of Interview (2011): April 16, 2011

When I saw my first Starbucks in Shanghai, I was excited to enter and meet the baristas. When I entered, there were only a couple men sitting near the door. Dressed in business suits, they both had a cup of coffee in house cups.

The barista didn't speak English, but another employee spoke a little. She didn't want to talk for long for fear of getting in trouble, but she had enough English to tell me that they got a lot of business people from the surrounding financial banks. Though this does not establish anything beyond a location near the financial buildings, she says that Chinese meet a lot of foreigners in the cafe. Rarely do the foreigners have any grasp on the language, or don't care to show it.

There are not a lot of teens or children that come into the cafe. Weekends are quiet, but weekdays are busy around lunchtime. Though our conversation was short, I thought about targeting cafes in less business places and about talking to market analysts.

Appendix #19
Hostess, Cafe Francais, Shanghai, China Date of Interview (2011): April 16, 2011

I passed this hotel on the street and wanted to just walk through the lobby. Of course, I ended up on the eighth floor somehow talking to the hostess of a beautiful restaurant that hadn't yet opened for the day. Noticing my curiosity, she asked me if I would like a cup of coffee. I declined but asked her about the restaurant and about the people that came in.

She was incredibly nice and opened up, which enabled me to ask about coffee in general. The market in Shanghai has grown considerably in the last fifteen years. The hotel has kept its coffee bar for a while, and is often used for large banquets and business gatherings. Prestigious people

McKee 56 often meet at the restaurant, and coffee is always offered and almost never turned down. They use a bean from South America, and have the ability of getting it shipped in fresh for roasting. Their coffee was expensive of course, but the price structure reflected the location of the restaurant rather than the quality of the bean.

Appendix #20
Manager, Hotel Cafe, Grand Gongda Jiangou Hotel, Beijing, China Date of Interview (2011): April 18, 2011

After an initial visit to the hotel, I returned for a second helping. This time, I walked straight into the nice new cafe attached to the lobby. The baristas were newly hired and had been trained with the basics of how to make certain types of coffee beverages. Outside of the cafe, neither enjoyed coffee and didn't know much about coffee beyond their training.

Not too many people know about the cafe, thus the environment is fairly quiet. The cafe was established just to give the hotel a more Western and streamline feel. The hope is for the hotel to become more of a destination in the future. When this happens, the infrastructure will already be in place and the cafe will be used more often.

Appendix #21
Employee, McDonald's, Near Outlet Stores, Beijing, China Date of Interview (2011): April 18, 2011

I talked to this employee late in the evening and asked about why the store didn't have the normal coffee setup like other locations. The answer was straightforward and not like a Chinese at all. She replied plainly in English that the outlet location didn't need a coffee attachment to attract customers. The coffee served was enough to satisfy the crowd that normally ate at the outlet store location.

If the customer base doesn't want options, then are they satisfied with a simple tea and coffee offering? Apparently the outlet stores were nothing more than a quick place to eat for a

McKee 57 McDonald's location. Plus the vicinity of the university probably plays into the menu options as well. With such a young consumer base, a straight coffee that is cheap and simple is probably the best option. And competing with Starbucks next door isn't hard when your consumer desires a cheap late night option. Cheap and simple was her answer.

Appendix #22
Feng Laoshi, Beigongda University Professor, Beijing, China Date of Interview (2011): April 20, 2011

Feng Laoshi was one of two professors that taught our group Mandarin at Beigongda while we studied at the university. For three hours every day during the week, we attended Mandarin instruction to help us immerse in the Chinese culture.

Following one of our classes, I questioned her about tea culture and coffee cultures in China. She'd just given us a lecture on Chinese tea in China, and I thought it necessary to follow up with a couple questions:

When asked about the tea culture, she talked about her personal preferences and how tea has always been in her life. She's truly appreciated the various tea flavors and enjoys jasmine above all else. She purchases tea in large quantities and almost always offers it when she has visitors. Her parents always served tea growing up and she grew accustomed to it at an early age. She remembers when coffee first began showing up and when she tried it, she decided it was a beverage not for her. As it turned out, none of her friends liked the drink either. Years later, her friends and her preference havent changed, but the coffee industry has grown. She says a lot of her students now drink coffee, though never in class. She's frequently asked to meet students at Starbucks. The following is particularly strong in children and teens. University students are split fairly even with like and dislike of the beverage. She also talked about how she thinks its a trend bound to burn out by the flush of western culture in the future. She doesn't see the industry lasting, but isn't surprised with the growth.

McKee 58

Appendix #23
Liang (Megan), English Association of BJUT, Beigongda, Beijing, China Date of Interview (2011): April 21, 2011

Location Description - English Corner #3: Meeting with members of the English Association, at Beigongda in a classroom on campus (Meeting with approx. 30 Chinese students for 1.5 hours). Liang is a student at Beigongda studying English. Her conversational English was hard to understand, and she shyly answered the questions with her friends around. 1. Do you like coffee? a. Yes, but not as much as friends and prefers tea w/ milk. 2. How often do you drink coffee? a. Only around finals and with friends. Never more than once a week. 3. Why do you like coffee? a. It's just what her friends like, so she tags along. 4. What is your favorite coffee beverage? a. Prefers a Starbucks Cappuccino. 5. Do your friends like to hang out at cafes? a. Her friends go a lot, but she only tags along once in a while. 6. Do your parents and/or grandparents drink coffee? a. Parents will drink coffee but tea is stocked and served at home. 7. Do you see the coffee industry growing in the future? If so, do you believe more cafes will pop up around the city and region? a. It is a growing culture and definitely one that will continue to grow. With more cafes moving into the area, people will get more used to coffee in their everyday lives.

Appendix #24
Turing, English Association of BJUT, Beigongda, Beijing, China Date of Interview (2011): April 21, 2011

Location Description - English Corner #3: Meeting with members of the English Association, at Beigongda in a classroom on campus (Meeting with approx. 30 Chinese students for 1.5 hours). Turing was different than the other students as he is majoring in computer science. He describes his major to demand long nights filled with little cups of coffee. 1. Do you like coffee?

McKee 59 a. Yes, only with friends or around finals How often do you drink coffee? a. Only around finals, then he drinks a lot of coffee. He'd rather keep coffee to those occasions. His best friend is addicted and drinks a lot of coffee. Why do you like coffee? a. Since college, he's warmed up to the taste of coffee as all of his friends drink coffee. What is your favorite coffee beverage? a. Coffee with a lot of cream. Do your friends like to hangout at cafes? a. Only on special occasions. Starbucks is expensive. A lot more around finals. Do your parents and/or grandparents drink coffee? a. No, they prefer tea. Grandparents refuse to try the drink.

2.

3.

4. 5. 6.

Appendix #25
Dorothy, English Association of BJUT, Beigongda, Beijing, China Date of Interview (2011): April 21, 2011

Location Description - English Corner #3: Meeting with members of the English Association, at Beigongda in a classroom on campus (Meeting with approx. 30 Chinese students for 1.5 hours). Dorothy is studying accounting at Beigongda and is excited to get into the job market and apply what skills she has learned. She answered along the lines of Sally, as they are both close friends (See Appendix 26). She was more enthusiastic about the growing coffee culture in the Chinese market. While she likes instant coffee, she also enjoys the real method to making coffee. However, during the term, she will buy a large box of instant coffee packages to use throughout the term to save money. 1. 2. 3. Do you like coffee? a. Yes, of course! How often do you drink coffee? a. On a regular basis, more than 3-4 times a week. Why do you like coffee? a. Coffee has a great flavor and its fun to have with friends and after dinner. It's also a great way to meet people. What is your favorite coffee beverage? a. A Starbucks latte made with half-and-half cream. Do your friends like to hang out at cafes?

4. 5.

McKee 60 a. Starbucks is the closest but it is expensive. Her friends go to another part of the city where cafes offer coffee at cheaper prices. 6. Do your parents and/or grandparents drink coffee? a. Not at all, and they refuse to. 7. Do you see the coffee industry growing in the future? If so, do you believe more cafes will pop up around the city and region? a. Yes of course. The business opportunity is too much to not take advantage of. The next couple years should see magnificent growth.

Appendix #26
Sally, English Association of BJUT, Beigongda, Beijing, China Date of Interview (2011): April 21, 2011

Location Description - English Corner #3: Meeting with members of the English Association, at Beigongda in a classroom on campus (Meeting with approx. 30 Chinese students for 1.5 hours). Sally is a close friend of Dorothy (See Appendix 25) and together they are both studying to get their bachelors of science in Accounting at Beigongda. She is not as much of an enthusiast with coffee as Dorothy is, but enjoys coffee nonetheless. Instant coffee is convenient and inexpensive. 1. Do you like coffee? a. Yes 2. How often do you drink coffee? a. Just with friends, and often during finals. 3. Why do you like coffee? a. It is the popular thing to do, and it is a solid way to stay up and study. Much cheaper than energy drinks. 4. What is your favorite coffee beverage? a. A Starbucks latte, just like Dorothy. 5. Do your friends like to hang out at cafes? a. Not that often. Don't like to study in cafes because they are often noisy and full of people just wanting to hangout. 6. Do your parents and/or grandparents drink coffee? a. Parents do like coffee, but don't have it that often. Grandparents do not like coffee. 7. Do you see the coffee industry growing in the future? If so, do you believe more cafes will pop up around the city and region?

McKee 61 a. Yes, everyone thinks the industry will grow. Her friends all talk about how their grandparents still serve tea when they go to visit them, but that the coffee drinks are becoming more popular. Just in the last couple years, cafes are becoming more a part of the urban landscape. There's no doubt that the market will continue to grow.

Appendix #27
Eileen, English Association of BJUT, Beigongda, Beijing, China Date of Interview (2011): April 21, 2011

Location Description - English Corner #3: Meeting with members of the English Association, at Beigongda in a classroom on campus (Meeting with approx. 30 Chinese students for 1.5 hours). Eileen was a special case. She's studying to become a lawyer, but is practically addicted to coffee. She says that she can't begin her day without a cup of coffee and that she's ready to go when the electricity for the dorms turn on. I was excited to talk to her, but her answers were not typical. 1. Do you like coffee? a. Yes of course! 2. How often do you drink coffee? a. More than three times daily. 3. Why do you like coffee? a. It gives her energy and keeps her awake to get all of her studying done. 4. What is your favorite coffee beverage? a. Straight espresso, sometimes a double. 5. Do your friends like to hang out at cafes? a. Not so much, but she normally is able to get a group going over to Starbucks to study. 6. Do your parents and/or grandparents drink coffee? a. Parents both drink coffee pretty regularly. 7. Do you see the coffee industry growing in the future? If so, do you believe more cafes will pop up around the city and region? a. She hopes it continues to grow and that more options are available in the stores soon. She has her own coffeemaker and buys a lot of bean for her daily coffee. She was embarrassed to say that she enjoys instant coffee with her friends because its a cheaper option.

McKee 62

Appendix #28
Troy, International Communications Course, Beigongda, Beijing, China Date of Interview (2011): April 21, 2011

Location Description - International Communications Course: Approximately 30 students with the Talent Show and exchange with students.

Troy is studying mathematics at Beigongda and enjoyed the chance to talk to native English speakers. His English got him by, but he seemed to understand what I was asking him and wanted to say more than he was able to answer. 1. Do you like coffee? a. Yes, only around finals, otherwise he could do without it. 2. How often do you drink coffee? a. Only around finals. 3. Why do you like coffee? a. Because it keeps him awake and his friends like it. 4. What is your favorite coffee beverage? a. One from the Canteen on campus. Straight out of the machine. 5. Do your friends like to hang out at cafes? a. Not so much, only when they have to. Normally, not at all. 6. Do your parents and/or grandparents drink coffee? a. Father does, but mother doesn't and grandparents think coffee is Europe trying to slowly take over China. 7. Do you see the coffee industry growing in the future? If so, do you believe more cafes will pop up around the city and region? a. It is growing larger and gaining popularity.

Appendix #29
Kobe, International Communications Course, Beigongda, Beijing, China Date of Interview (2011): April 21, 2011

Location Description - International Communications Course: Approximately 30 students with the Talent Show and exchange with students.

McKee 63 Kobe is studying Business at Beigongda and was very excited to meet and speak with native English speakers. His personality showed through and allowed us to talk more in-depth about random questions I had on the government and different policies. He firmly believes that the younger generation is affected by the influence of Westernization. 1. Do you like coffee? a. Yes, he likes it a lot. 2. How often do you drink coffee? a. Normally just for studying, but with friends mostly. 3. Why do you like coffee? a. The taste is nice and smooth. It is different from other hot beverages and is good in cold weather. 4. What is your favorite coffee beverage? a. A vanilla latte from anywhere. 5. Do your friends like to hang out at cafes? a. Yes, all the time. Normally on weeknights for studying and hanging out. 6. Do your parents and/or grandparents drink coffee? a. No, they don't like coffee. The parents do like Starbucks. 7. Do you see the coffee industry growing in the future? If so, do you believe more cafes will pop up around the city and region? a. Yes, the market is growing and the people desiring coffee increase each year. More of his friends are drinking coffee as they get closer to graduation in college. In high school, coffee wasn't as popular, but college has given it a new meaning.

Appendix #30
Lizhe, China National Guide, Anze County, Shaanxi Province, China Boalin, Retired PLA Officer & Surgeon, Anze County, Shaanxi Province, China Date of Interview (2011): April 25, 2011 Lizhe enjoys coffee and has a wonderful espresso maker at home Boalin does not like coffee, but loves preparing it for Lizhe Lizhe prefers coffee beans from South America and the famous Sumatra blend She doesn't particularly care for Starbucks Enjoys strong coffee but likes cream and sugar normally with the coffee Didn't grow up with coffee but has come to like coffee from traveling with foreigners Appreciates coffee made slowly and the correct way, though instant coffee is fine

McKee 64 Her generation doesn't care for coffee because of the taste. Doesn't believe its because of politics or anti-westernization thoughts Does not like coffee beverages in the markets, only from home or established cafes

Appendix #31
Wu Ming, Student Worker, Canteen #3, Beigongda University, Beijing, China Date of Interview (2011): April 27, 2011

Watching the "espresso" machine in the student cafeteria at Beigongda University in Beijing, out came the creamy-sugary blend of coffee the campus has grown accustomed to. When I ask about the contents of the coffee, I receive the response, "It's coffee, what more do you want?" from the student worker. And she's correct, I did order a cup of coffee; I received the coffee. She then hands me the small cup and a package of instant coffee produced by the same brand "MacCoffee." Turning over the package, the ingredients listed the following in order: sugar 55%; non-dairy creamer 32.5%; and natural instant coffee 12.5%.

Appendix #32
Sue Laoshi, Beigongda University Professor, Beijing, China Date of Interview (2011): April 27, 2011 Tea culture is alive and well existent in the older generations and woven into the culture the youth are raised with Coffee is a new concept, popular with the youth and the individuals caught up in mainstream popular culture Care given to what the government is doing with coffee; in the end, the government controls the politics and business conducted in China Students are more apt to go to coffee shops like Starbucks to feel a part of the culture they are fed continuously Day in and day out, youth are fed a new culture influenced by globalization Students have culture beaten into their being from infancy

McKee 65

Appendix #33
Bar Manager, Hill-Top Cafe, Near Bell & Drum Towers, Beijing, China Date of Interview (2011): May 1, 2011 Popular place for tourists, primary target is the foreign audience and Chinese of the middle age Atmosphere is desired for nightlife and day use Coffee is an addition to the cafe, but is still attempting to catch popularity among the locals Majority of coffee is sold at night and the numbers grow each month in sales Coffee beans used in cafe are bought locally but shipped in from around the world

Appendix #34
Cafe Manager, Starbucks, BHG Market Place, Beijing, China Date of Interview (2011): May 4, 2011 Popular place for foreigners and businessmen coming in from the surrounding office buildings Great place to meet clients around lunch time and after the work day is over A great number of orders occur in the morning from the surrounding buildings; employees are sent over for mass amounts of regular coffee Hours are extended to accommodate for the hours of the mall and both the night and early morning markets Students are often found in the cafe using the wireless internet Was the original Starbucks on location until the customer base and demand had grown to overwhelming numbers? A second location is open across the plaza in the other part of the mall. Both share plaza front locations and are almost mirror images of one another business plan wise.

McKee 66

Appendix #35
Owner, Grandma's Kitchen, Near Friendship Store, Beijing, China Date of Interview (2011): May 4, 2011 Coffee is always on and ready Breakfast is popular at the kitchen and coffee is almost always ordered with breakfast Coffee is flown in from the United States, and brewed to fit the average concentrate for restaurant servings Milk and cream are always heated before served with the coffee A large number of customers come in from the surrounding embassies Competing companies in the area include the various American restaurant chains on the western face of the block Friendship store is normally a shared visit when customers have a meal at the restaurant Likely that the customer speaks English and the customer base ranges from all over Beijing as a destination for an All-American breakfast and food

Appendix #36
Agness, Xi'an Tour Guide, Xi'an, China Date of Interview (2011): May 7, 2011 Thinks coffee is not good at all Loves tea and would carry tea when we toured on the bus Doesn't understand the growing coffee culture but has determined that it is responding to the increasing amounts of tourists coming in from Europe Europeans are the main tourist group traveling through the region and the coffee market has exponentially grown in the past couple years Lots of coffee shops seen within the walls of the old city Old teahouses are being driven to the outer parts of the city because of the increasing price for storefronts in rent and pricing

McKee 67

Appendix #37
Shari, Silk Road Guide, Jiayuguan, China Date of Interview (2011): May 10, 2011 Coffee at terra cotta, didn't think twice about expensive price 20 coffee Likes coffee but parents do not enjoy at all; grandparents believed it was "hobo" soup and parents share the same viewpoint Western culture influenced Mainly young people drinking coffee, don't like tea which is served by the elders Likes to drink coffee with sugar and milk Introduced to coffee in college and learned much about the drink from friends

Appendix #38
Armat, Vendor, Buddhist Ancient Temple, Tu La Fan, China Date of Interview (2011): May 12, 2011 Coffee in tea style container Loves coffee but uses instant coffee No milk or sugar additives Gets the question from foreigners about serving coffee at the temple Considering including coffee ice cream bars Doesn't know much about the growing market and if Tu La Fan is even a base where the industry could grow

Appendix #39
Risa, Local Guide, Tu Lan Fan, China Date of Interview (2011): May 12, 2011 Uygur guide who is working with her family to open a hotel with a cafe on the roof that sells iced coffee during the summer and hot coffee during the winter. Coffee has been in the family for a while Traveled to different parts of Central Asia and found the coffee culture is thriving in urban areas

McKee 68 Would be one of the first coffee shops to open up in the region Considers the need to focus on combining coffee with another product in order to ensure a profit in the first couple years Combination of excited and scared about taking on such a task

Appendix #40
Barista, Coffee stand in Tu La Fan Hotel, Tu La Fan, China Date of Interview (2011): May 12, 2011 Open in the hotel till 11pm daily Fairly fresh coffee flown in from South America Worker talked about market, mainly strong coffee in western hotel Locals rarely drink, but use a French press style maker or instant coffee 10 different types of coffee, Columbian is only one that was fresh Strong coffee like four shots in one large cup (vacuum press)

Appendix #41
Seejian, Cafe Manager, Caffe Segafredo, Almaty, Kazakhstan Date of Interview (2011): May 15, 2011 Primary concept is coffee but the hookah bar is popular and the live DJ at night normally dominate the night scene Combined concept has been very popular for the cafe Offers free internet for all customers Focuses on providing a clean and modern environment for customers Italian concept, but none of his employees have been to Italy or have any experience with Italians--neither does he, simply following the owners concept Opened and established five years before and fit right into the market immediately Established foundation for coffee drinkers in Almaty

McKee 69

Appendix #42
Illnurick, Barista, Black & Brown Cafe, KIMEP University, Almaty, Kazakhstan Date of Interview (2011): May 16, 2011 Popular for students on campus Most popular beverage is the Americano--ordered with lots of sugar (3 packets served with the beverage) Located on campus, the professors requested its founding on campus Evolved through the years to incorporate a fun and modern environment Coffee portion has evolved with input from customers and professors from the Western countries

Appendix #43
Tima, KIMEP Student, Almaty, Kazakhstan Date of Interview (2011): May 18, 2011 Tima is from Astana, Kazakhstan A freshman, he is studying Business and hopes to one day work in America Coffee has been a part of his upbringing Coffee shops are becoming popular but are more a part of daily life than something new and improving Cafes are popular hangout spots for his friends Western culture, mainly Italian coffees are very popular among the locals Sugar additives are the primary condiments for coffee beverages Likes coffee but doesn't like buying it off campus because of the price Believes the surrounding region, really Almaty, prices the coffee much higher than the rest of Kazakhstan

Appendix #44
Illnura, Tour Guide, Karaganda, Kazakhstan Date of Interview (2011): May 20, 2011 Coffee is normal but not seen out in the rural part of Kazakhstan

McKee 70 Instant coffee can be purchased in the larger supermarkets Tourists visiting the region ask about places they can get coffee when touring--answer is basically that coffee shops are non-existent in rural Kazakhstan Doesn't mind the taste of coffee but prefers other beverages Friends from college liked coffee and it was normally a part of college life and studying

Appendix #45
Maria, Tour Guide, Karlag Gulag, Karaganda, Kazakhstan Date of Interview (2011): May 22, 2011

Maria mirrored Illnura's interview with the exception that she likes coffee. The instant coffee works but is not as good as a regular cup of coffee. Locals do not really like the beverage, as it has not ever been a part of the culture. Cafes have attempted to open in Karaganda, but the normal progression is that the cafe then needs to sell something else to make a profit and stay in business. Nevertheless, the cafe keeps "cafe" in its name but has evolved into something else for sheer survival. College life involved coffee and that was normally in the dorms in the form of instant coffee.

Appendix #46
Maria, Manager, Beach Club, Khan Shakra, Astana, Kazakhstan Date of Interview (2011): May 24, 2011 The coffee bar is extremely new for the Beach club No iced or blended coffee beverages were available and no thought has been given to including them yet One small coffee machine is in the bar, but hot drinks are not normally ordered-wondered why iced coffee beverages aren't yet a part of the club and bar area Normally customers who desire coffee will go down to get coffee from one of the two main coffee shops open--one is being built Coffee was thrown into the Beach Club concept when the employees from Turkey were sent in three months prior

McKee 71 The Turkish employees are helping to direct the Beach Club to becoming a modern and popular destination for tourists and residents of Astana President Nasarbyev looks on with delight at the progress the Club has made and hopes that it will show yet another reason for foreign investors to invest in Kazakhstan--as evidenced by the President's visit that evening

Appendix #47
Jaren Shaw, Barista, Hargut Club, Khan Shakra, Astana, Kazakhstan Date of Interview (2011): May 24, 2011 Served the coffee wrong and admitted to having the machine less than a week Knows nothing about coffee except how to make the basics Confused the order and made two single espressos when I'd ordered a double espresso Sat with me and talked about the President Nasarbyev's visit to the mall and how the mall was preparing for his visit--everything needed to be perfect and modern Modern includes coffee Asked about tips with coffee and if I had any information on the Kazakh market and consumers Said that young adults were the primary customers Customers normally playing the PS3 games which make up the primary part of the concept

Appendix #48
Beijing, China Dates in Location (2011): March 25 - April 14; April 18 - May 5; May 29 - June 2

Beijing is the political capital of China. Established by the Han Dynasty, Beijing has become the powerful center of the middle kingdom. The Communist Party controls all political decisions made at the macro level and what is decided in government is finalized and followed by the rest of the country. While I was in Beijing, I spent a great deal of time in coffee shops enjoying the environment and talking to all who were interested in anything beyond hello. It is important to

McKee 72 state that not all interviews are accounted for from Beijing. Everyday I'd converse with different people about coffee and gain small pieces of information concerning the environment and growing industry. The interesting part of talking to locals was that they were fairly aware of how coffee is affecting the beverage industry and Chinese culture. Nevertheless, a collective perspective is required to make any assertions. Beijing provides the base of data as I've spent more than six weeks in Beijing.

Comparing Beijing to Shanghai is in no way a proper assessment of China as a whole. Beijing has slowly allowed coffee to build a following in the city. I believe this is in part due to the government control, and cultures acceptance of the western beverage. Chinese do not have the human ability to drink substantial amounts of dairy past an early age. Unlike Westerners, Chinese do not have dairy woven into their diets. This creates a fairly distinct problem for the coffee culture to grow. Most coffee beverages are based in the addition of various forms of milk. Whether half-and-half, whole or 2% milk is used, the majority of coffee drinks require the addition of some sort of dairy. From various interviews and observations, Chinese do not normally order a coffee beverage that contains a large quantity of dairy. Rather, they will order coffee that can be altered with non-dairy creamer, or sugar. This alteration of the drink has created a unique spin to coffee coming out of the West. If one were to argue that the Chinese are drinking straight coffee, the assertion would be wrong in the way that the majority of the ingredients added to the strength of the coffee in the beverage. In a way, the average drink is more of a melted candy bar than a coffee. This is already suggestive of something larger. Westernization is occurring and influencing, but to what extent does it affect the coffee drink?

The average customer in a coffee shop in Beijing is normally not in the cafe for more than thirty minutes to an hour. Often, the customers will take their coffees to go. For coffee shops in more local areas of Beijing, the normal customer will be between the ages of 18 - 30 years of age. In addition, the customers are not, what the Western world considers, "regulars." The customer base for coffee shops often depends on the activities in the surrounding area and is not necessarily destination spots.

McKee 73 In the urbanized settings with large malls filled with designer brands or Western brands, the customer base is young and utilizing the offered Wi-Fi for work or school purposes. Tea is normally offered in these coffee shops, yet the normal beverage depends on the season. Breaking the tea norm of hot green tea year around, chilled coffees are a delight in late spring to early summer, and hot coffees are enjoyed more in the colder seasons of the year. For the urbanized locations, Chinese are normally seen doing business with foreigners or talking about a sect of academia, business, and/ or politics. I had the unique experience to sit in on a heated debate between Chinese businessmen about the commodity market in China. They had both ordered regular coffees and had added milk to dilute the flavor of coffee. The two spent a half an hour moving in and out of Mandarin and English--enough for me to listen in. They also complained about a group of business partners that had seemingly stood up their meeting. Interactions like this are normal for urbanized coffee shops in Beijing. Whether business or government-related, the average older customer is male between the ages of 30 and 60. This is due to Western influence or it has yet to be uncovered.

I've observed students in cafes studying late into the night. When asked about study locations, they normally respond with the fact that the cafes offer quiet environments at night. I've found that cafes open later in the day (around 10am rather than the American 5am wake-up) and close early around 9-11pm in the evening. The busiest times for cafes seem to align with lunch time to early afternoon. Normally the mornings are slow and the late evening hours are filled with students or young adults working. Most cafes offer free Wi-Fi, but most comply with the Chinese Ordinance #23 which requires cafes to collect personal information on the users of the internet. Normally, a Chinese cell phone number is required, which cuts the options for foreigners to very few hotspots available in Beijing. While the majority of the coffee shops comply with the ordinance, the local family start-ups normally offer free personal hotspots available for their customers.

The urban setting provides the perfect background for mainstream influences of Western culture to be advertised to the general populace.

McKee 74

Appendix #49
Shanghai, China Dates in Location (2011): April 15 - April 17 1. Coffee shops along the river in Shanghai 2. Various coffee shops in the buildings: financial and residential 3. Coffee shops on 86th floor in World Financial Center 4. Many hotels offer the instant coffee option. The ingredients are tailored to a sweeter and creamier flavor. 5. Average espresso machines are the norm. Even in the larger, "more sophisticated" cafes, the espresso machines only have two espresso ports. 6. Coffee market and roasters throughout the outskirts of city. But the city is a port for coffee beans being sent all over China. Hong Kong is another port city and major distributor of coffee beans throughout China. 7. The crowd in the cafes compares to the Beijing crowd. The average customer that frequents the downtown cafes wears a suit and is in "big business." The crowd is middleaged and normally meeting a friend or business partner to discuss politics or business deals. I witnessed a fair amount of Chinese businessman meeting with foreigners.

Appendix #50
Anze County, Shaanxi Province, China Dates in Location (2011): April 24 - April 26; April 27 - April 28 1. April 24: Met with our guides younger sister on the way up to the mountain Xunshi. Jasmine tea was served. 2. April 25: Visited Anze High School #1. Classes from 45-60 students before mixing with other students on campus. Informal contact with students in basketball and various activities. When asked about coffee, I was normally given blank stares. Many students haven't heard of coffee; many students have not traveled outside of Anze. 3. April 25: Visited Anze Middle School #2. Classes from 45-50 students before mixing with other students in different classrooms. Again, same result as the high school. Students have not traveled outside of Anze County and do not recognize the name coffee.

McKee 75 One student had heard of Starbucks from a popular song she listened to on the radio. When asked about the company, she didn't know what coffee was or that it was a beverage. 4. April 26: Met with guide's youngest sister on the way down from a mountain lookout outside of town. Jasmine tea was served. Culture reflects the tea woven into generations of regularly drinking the beverage. 5. General observations: The town did not have any sign of a coffee shop or location to purchase coffee--instant or not. The one sign of coffee was on the side of various ice cream freezers outside of supermarkets. When asked about coffee, the owners weren't able to give me any information on the product. Checking the inside of the freezers, it turned out that the coffee was only on the picture on the outside of the freezer, not on the inside in the ice cream the vendor sold.

Appendix #51
Teng Cheng, Shaanxi Province, China Dates in Location (2011): April 26 - April 27 1. April 27: Visited Teng Cheng Junior Middle School. Principia students split into groups to talk and teach the students. I asked a class if any had heard of coffee, and to my disappointment, no one had. The interesting part of the students here was that they knew more about Western popular culture than the students in Anze County. Results were expected. 2. The town doesn't have anything beyond a couple supermarkets and I didn't find any products with coffee ingredients.

Appendix #52
Hao Di Po, Shaanxi Province, China Date in Location (2011): April 27 1. The village is extremely small. Tea is served upon entrance to any home. The variety of choices of tea was surprising for such a rural town. Citizens maintain the tea culture with the Chinese concept of black tea in the winter and green tea all other seasons of the year. Hot tea is served no matter the weather.

McKee 76 2. One man had traveled outside of Shaanxi Province and had heard of coffee, but didn't have anything to say about whether or not he believed the industry would make it to the rural region any time soon.

Appendix #53
Xi'an, China Dates in Location (2011): May 5 - May 9 1. The city is home to a large coffee market. Many coffee shops have displaced the local teahouses within the inner city walls. On the outside of the old city walls, coffee shops are normally seen within a mile of the old walls. Tea is traditionally served in Chinese restaurants while coffee is normal in the more touristy places. Most tourist locations have espresso bar options for a higher price. Foreigners are willing and able to pay the premium; therefore creating a continuous market that tolerates the increased price structure. 2. Baristas that I attempted to talk to knew little more than how to operate the machines. Furthermore, my Mandarin seemed to fail me in these situations. They either didn't understand my questions, or chose to not answer them. 3. Xi'an airport: a. b. Five coffee shops, average price for a cup of coffee was 50. One "special" cafe served a Blue Mountain coffee blend priced at 70. I was

skeptical to the authenticity of the blend when the four other cafes also boasted the blend at a similar price. The reality of getting a Blue Mountain blend to Xi'an seems slim, but not impossible. Though I didn't find the blend in the city, it was odd and out of place in the airport. c. d. All cafes were sat down with meals averaging 70. Xi'an is working hard to expand the airport and a new terminal was under

construction.

McKee 77

Appendix #54
Jiayuguan, China Dates in Location (2011): May 9 - May 10 1. The city is located in rural China, yet is developed enough to sustain an incredible amount of growth in the near future. The infrastructure is capable of accommodating double the population currently in the city. The sewer and water systems need updating, but the city is open to citizen growth. 2. However, despite the infrastructure, a local coffee culture is non-existent and the tour guide deliberately stated that I would not find anything. She was correct.

Appendix #55
Duahuang, China Dates in Location (2011): May 10 - May 11 1. Unlike Jiayuguan, Duahuang was filled with tourists of many ethnicities. American and English are not normally among the ethnicities, but a coffee culture is quietly growing within the city. Less than five years ago, the coffee culture was non-existent. 2. American couple found a coffeehouse in one of the main markets. Two other look-alikes pop up close by, but the coffee is not guaranteed to be freshly prepared correctly. Still the culture is growing in the region, and the trade route for the beans flows through the nearest train station city, Tu La Fan.

Appendix #56
Tu La Fan, China Dates in Location (2011): May 12 - May 13 1. May 12: Breakfast at Tu La Fan Hotel. Real coffee served that had been brewed lightly and served with hot milk. This is the first sign of real coffee this far west. Outside of the port cities, real coffee is unusual for hotels offering coffee for breakfast. 2. Coffee stand in Tu La Fan Hotel stayed open till 11pm every night. The barista showed me his stash of fresh coffee. He either was proud of the freshness or thought that would entice me into buying a cup.

McKee 78 3. Outside of the hotel, coffee was virtually non-existent. The few vendors I talked to on the street knew of the beverage but didn't see any profit in trying to add that to their store. 4. The culture is turning to one more Middle Eastern. At this point, I may witness a change of culture and ideals to something outside of the tea background of the Chinese. The change of scenery should make for an interesting change come Urumqi.

Appendix #57
Urumqi, China Dates in Location (2011): May 13 - May 14 1. Visited a Uygur Bazaar where lots of coffee opportunities could be found just outside the market in the surrounding area. The cafes were small and cheaply priced. The average cup of coffee was heavily altered with cream and sugar. Each cafe had an average amount of customers in the afternoon. Most enjoying the cheap cup of coffee. 2. Heavenly Lake is located up in the Tian Shan mountain regions of China. Local market serves cold coffee (Nescafe) from coolers. Outside of serving it to tourists, there is not a reason to add a hot beverage coffee line. 3. Urumqi International Airport: a. b. c. d. Two coffee shops with a price structure similar to Xi'an prices. Shopkeepers know Chinese, Russian, and English Shopkeepers all contend that the average coffee customers are foreign The Chinese who drink coffee are normally businessmen traveling to conduct

business abroad

Appendix #58
Almaty, Kazakhstan Dates in Location (2011): May 14 - May 19; May 25 - May 29 1. KIMEP campus has a central cafe with internet connections for visitors. 2. The surrounding area and urban portion of the city have regular coffee shops with a French or American street presence.

McKee 79 3. From observing the students on campus, students often frequent the cafe and drink coffee. There are options to add cream and sugar to the coffee as all of the instant coffee options are cheap and have the additives already in the packets. 4. International and domestic students all contest that the coffee drink is normal in the different central Asian countries. However, the type of coffee the region is used to is not of the likes of Western or Turkish coffees. The coffee is similar to the Chinese "coffee." 5. The average barista in an established cafe is knowledgeable about his/her machine and the coffee bean. 6. Interesting fact: The Chinese coffee I've come to term is explicitly laid out on the back of the MacCoffee packet commonly sold at most convenient stores. The ingredients include: sugar 55%; non-dairy creamer 32.5%; natural instant coffee 12.5%

Appendix #59
Karaganda, Kazakhstan Dates in Location (2011): May 19 - May 22 1. Coffee is only seen in the instant packets hotels use for the morning breakfasts. Even then, I question if this is the offering given to normal guests, or to foreigners. The entire tourist trip has been tainted by this mentality that tourists require a different meal than the local tourists. Coffee seems to be of no difference. 2. Instant coffee is sold in supermarkets, both in the packets and on the shelves. There is also a locally produced and packaged instant coffee specific to Kazakhstan--I could not uncover the origins of the bean the company uses. 3. Beyond the hotels, the average Kazakh or Russian does not drink coffee. The taste is liked and known, the beverage is recognized. But most families regard the beverage as unnecessary and another added expense. It is not usual to see the beverage in a Kazakh household in this region.

McKee 80

Appendix #60
Astana, Kazakhstan Dates in Location (2011): May 22 - May 25 1. Astana is the political capital of Kazakhstan and it operates in this manner. The new city is set-up to perfection. While it is not common to see citizens walking the new part of the city near all of the government buildings, the old city is full of people out strolling. 2. Bars and cafes line the main streets, yet off the main streets, small cafes can still be found. The market is growing as cafes are set up throughout the new part of the city. Khan Shakra, the largest mall and structural pride of Kazakhstan, has a number of prestigious cafe/bars in the building. These are located on the outside of the main atrium and are clearly intended for a specific audience. The prices are much greater than anywhere else in the city and the baristas are specialized in the different coffees they make. 3. The baristas that work in the inner part of the atrium only recently acquired the espresso machines and know very little about the drinks they make, let alone the terminology to getting orders correct. 4. I believe the intention is to grow the market in Astana for coffee as Western practices and ideals flood the city. The city still requires development.