In China’s Coffee Price War, Cotti Lowers the Heat
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A Cotti Coffee shop bustles with customers in Wuhan on Jan. 30. Photo: VCG
Cotti Coffee has scaled back its sweeping discount campaign that sold drinks for 9.9 yuan ($1.4), signaling a potential truce in the brutal price war that has gripped China’s coffee market for three years.
In February 2023, the company rolled out a store-wide “9.9 yuan unlimited” promotion across most of its outlets. As of Sunday, however, the number of menu items priced at 9.9 yuan has been sharply reduced.
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- Cotti Coffee scaled back its 9.9-yuan promotion, signaling a pause in China’s ongoing coffee price war.
- The coffee price war began in February 2023, fueled by deep discounts from Cotti and Luckin, leading to eroded margins and regulatory scrutiny.
- Regulatory pressure and an anti-monopoly investigation in 2025 prompted both coffee chains and delivery platforms to adjust pricing and promotional strategies.
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Who’s Who
- Cotti Coffee
- Cotti Coffee, established in October 2022 by former Luckin Coffee founders, recently scaled back its aggressive 9.9 yuan discount campaign. This move signals a potential de-escalation of the three-year-long price war in China's coffee market. The company utilized rapid, asset-light franchising to expand, often opening stores near Luckin outlets.
- Luckin Coffee Inc.
- Luckin Coffee Inc. was founded by Lu Zhengyao and Qian Zhiya, who were later ousted. The company engaged in a price war, launching a 9.9-yuan coupon campaign in June 2023, which was extended for two years. However, Luckin has since narrowed the scope of applicable stores and products, with most items now priced between 12 yuan and 17 yuan.
- JD.com
- In the first half of 2025, JD.com, along with other major delivery platforms like Taobao, engaged in a significant subsidy battle. This competition led to even lower prices for coffee and tea. Authorities intervened, urging platforms to maintain fair competition and regulate their promotional activities.
- Taobao
- Taobao, including its rebranded "Taobao Instant Commerce" (formerly Ele.me), was involved in a fierce subsidy battle in the first half of 2025. This competition, along with other major delivery platforms like JD.com, led to even lower prices for coffee and tea. Authorities later intervened to ensure fair competition and regulate promotional activities.
- Ele.me
- The article mentions that Taobao Instant Commerce, which was rebranded from Ele.me, engaged in a fierce subsidy battle in the first half of 2025. This battle drove coffee and tea prices even lower.
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What Happened When
- October 2022：
- Cotti Coffee was established by Lu Zhengyao and Qian Zhiya.
- February 2023：
- Cotti Coffee launched a store-wide '9.9 yuan unlimited' promotion.
- February 2023 (Soon after)：
- Cotti began a weekly 8.8-yuan promotion and limited-time 1-yuan discount for new customers.
- June 2023：
- Luckin Coffee launched a weekly 9.9-yuan coupon campaign.
- August 2023：
- Luckin Coffee's CEO Guo Jinyi announced the extension of their 9.9-yuan campaign for at least two years.
- First half of 2025：
- Major delivery platforms including JD.com, Taobao, and Taobao Instant Commerce engaged in a fierce subsidy battle.
- January 2026：
- The State Council's anti-monopoly office launched an investigation into competition in the food delivery sector.
- January 31, 2026：
- A representative said Cotti had adjusted its pricing strategy, continuing '9.9 yuan unlimited' for some items.
- By February 1, 2026：
- Cotti Coffee sharply reduced the number of menu items priced at 9.9 yuan.
AI generated, for reference only
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