TAIPEI (TVBS News) — Uni-President Enterprises (統一企業) warned Monday (Dec. 29) against raising CITY CAFE prices despite surging coffee bean costs that battered company profits. Chairman Lo Chih-hsien (羅智先) stated he has adapted to elevated price levels and does not expect coffee bean prices to decline. The company's profits dropped nearly 5% in the first three quarters due to rising commodity costs and e-commerce regulations.
Lo noted the initial coffee bean price surge was overwhelming, but current elevated levels have become the new norm for the industry. He stated he personally dislikes changing prices, emphasizing that increases could disrupt the supply chain without necessarily boosting consumer demand. The chairman stressed the importance of maintaining balance in pricing strategy for the company's popular convenience store coffee brand, CITY CAFE.
Lo addressed rumors about Luckin Coffee (瑞幸咖啡), a major Chinese coffee chain, entering Taiwan through an agency model, stating it would not significantly impact Starbucks (星巴克) operations in Taiwan. He highlighted the diverse business models between Luckin Coffee and Starbucks, noting that more market options ultimately benefit consumers and drive competition. The potential entry would prompt industry peers to reassess their market positioning and evaluate whether they remain true to founding principles.
Uni-President Enterprises decided to terminate its brand licensing agreement with Carrefour in France following the company's 2023 acquisition of Carrefour Taiwan operations, initiating a major rebranding plan. Store signage replacements across Taiwan locations are expected by mid-2026, according to Lo Chih-hsien. The chairman indicated a formal employee vote on the new brand name will occur after New Year's Day 2026.
