This Asian drinks store uses nearshoring in the face of possible war

Facing fears of war between China and Taiwan, Asian beverage company Gong cha has activated a plan for Mexican suppliers to predominate in its supply chain.

By operating nearly a hundred establishments in the country, this Asian-style tea seller hopes that within a maximum period of 8 months up to 70% of its supplies will be domestic, while currently almost all are foreigners.

“We opted for relocation out of fear of war,” said Cristina Soto, director of Gong cha in Mexico.

Forbes Network: Nearshoring in Mexico: a historic opportunity for the economy of the future

In an interview, Soto explained that at the chain’s Taiwanese headquarters they fortunately found an opening for Mexican products, and that one of the first achievements of their outreach plan was even the coffee purchasing agreement 100% Mexican for establishments operating in Mexico. .

“We are trying to see if in America, Canada and the United States, (Gong cha establishments) buy the same Mexican coffee,” he added.

Fruit pulp is another of the ingredients that Gong cha will look for in Mexican supplies.

Exception to the rule

Although Gong cha prepared its recipe and added nearshoring to protect its operations in Mexico in the event of war, Taiwan tea and tapioca leaves are products that cannot be supplied locally, as their origin and production are located on the Asian island. .

However, the company has already prepared to never stop operations, even if conflict erupts after China’s veiled threats against Taiwan.

“You can stop listening to the conflict issue for a month or two, and then they turn it back on. China wants to take back this territory, so we have a plan B for tea and tapioca,” Soto said.

The chain, he explained, has a 3-month supply of everything necessary to continue operations in the event of war.

Likewise, they already have leaf plantations in Vietnam and they also have another tapioca supplier ready.

International leaders have warned that an armed attack on Taiwan would cause chaos in the supply of goods from various chains in Asia.

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Trix Barber

"Amateur bacon nerd. Music practitioner. Introvert. Total beer junkie. Pop culture fanatic. Avid internet guru."

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