On May 18th, Luckin Coffee began selling two alcoholic beverages online. In the highly competitive coffee industry in China and amid the declining profits of Luckin Coffee, the company has decided to explore new avenues.
According to a report from “First Financial” on May 18th, the staff at Luckin Coffee stores stated that these two beverages contain 15 milliliters of gin and whiskey respectively, increasing the alcohol content to more than 0.5% vol. According to national standards, alcoholic beverages with alcohol content above 0.5% vol are classified as alcoholic drinks.
In 2023, Luckin Coffee collaborated with Guizhou Maotai to launch a flavored latte coffee, but it had an alcohol content lower than 0.5% vol and was not considered a regulated alcoholic beverage.
It is reported that the official launch of these two alcoholic specialty drinks by Luckin Coffee is a test for the Chinese market, with potential further plans in the future.
Regarding this move, Jiang Han, a senior researcher at Pangus Think Tank, believes that Luckin Coffee’s purpose is to enhance its profitability.
According to the “2026 China Tea and Coffee Data Insight Report”, in the 12 months leading up to February 2026, the number of coffee stores in China increased from 173,000 to 226,000, representing a growth rate of over 30%.
The intensifying industry competition has led to a decline in Luckin Coffee’s net profit. According to its first-quarter financial report, in the first quarter of 2026, the company achieved a revenue of 12 billion Chinese Yuan, a year-on-year increase of 35.3%, but the net profit was 510 million Yuan, a year-on-year decrease of 3.6%.
Furthermore, ongoing price wars have impacted the costs and profitability of coffee enterprises, prompting Luckin Coffee to seek new business ventures to increase revenue and improve quality.
Public information indicates that Luckin Coffee, established in 2017, is a Chinese coffee chain headquartered in Xiamen.