On August 5, the opening day, these men and women had to wait 30 minutes outside the store, and another 20 minutes inside before getting a cup of Blue Bottle coffee. In Shanghai's Jing'an Kerry Centre, adjacent to the resplendent Jing'an Temple and amidst one of the densest areas of high-end department stores, Nestlé's Blue Bottle opened its second store in mainland China. Outside, young people continuously came to check in, also attracting some fashionably dressed elderly Shanghainese-speaking aunties and uncles. Just as they had previously rushed to new popular stores in the 'Jufuchang' area, the city's trend scouts would not miss this coffee brand that values store environment. Blue Bottle also sells 'Yunnan beans,' which come from Pu'er. At this time in Pu'er, the coffee cherries in the mountains are transitioning from green to red; soon, they will leave their mother plants and be shipped worldwide. Now, this prefecture-level city named after tea is also China's largest coffee producer, with coffee cultivation spread across its 1 district and 9 counties, accounting for half of the province's output. Despite coffee trees covering the mountains, an outside tourist would find it difficult to spot them. Unlike Hangzhou's neatly arranged, easily recognizable tea fields, Pu'er's coffee trees hide under camphor trees, mango trees, or jackfruit trees, with wild grass growing in the fields, plants of varying heights, lush and verdant, making the area seem like an untouched jungle. This ecological environment is partly due to Nestlé's influence. Over the years, Nestlé has promoted shade tree planting in the origin, with agronomists repeatedly advocating: keeping weeds at a certain height does not affect coffee growth but protects soil and water; planting more trees promotes biodiversity, helps coffee yield, and the fruits and leaves can also be sold. ◎Hou Jiazhi explains: Coffee trees originate from tropical rainforests and need a certain shaded environment; planting more trees is beneficial for coffee growth, and diversified planting also increases farmers' income. One is the city with the most coffee shops in the world, the other is the region with the highest coffee production in China; these two scenes at the same time form a silhouette of China's coffee industry: Chinese people's coffee consumption taste is advancing rapidly; on the other hand, in recent years, Yunnan's reputation as a world-class producing area has grown louder. All of this began with a decision Nestlé made in the late 1980s. In 1988, Nestlé Coffee officially decided to enter mainland China. As the slogan 'It's delicious' echoed repeatedly during prime TV time, Nestlé also sent agronomists to Yunnan, starting a long-term coffee cultivation plan. This coffee 'new continent' initially opened by Nestlé includes Pu'er, Baoshan, Xishuangbanna, Wenshan, Lincang, Nujiang, etc., spreading along the border, inhabited by ethnic minorities, and once deeply impoverished. Coffee cultivation improved local livelihoods and for a long time was a pillar industry for local export earnings. Nestlé's work in Yunnan has won the United Nations' 'World Business and Development Award.' In China, only Nestlé has received this award. From the perspective of community impact, or 'rural revitalization,' Nestlé Coffee's work in Yunnan is one of the best examples of ESG (Environmental, Social, and Governance) practices by multinational companies in China. Because of these, we have rediscovered this time-honored brand. At this point in time, we are curious how Nestlé, starting from 'making good products,' has accumulated step by step to ultimately provide an answer to 'how to make a business last.' On September 5, CEIBS Business Review entered the coffee production area to explore how it implements ESG concepts and how this practice has contributed to its long-term survival. 01 A Strategic Decision: First Create Value, Then Share Value When I arrived in Pu'er, it was in the final calm before the busy harvest season. A new environmental regulation was quickly spreading among villagers, disturbing this calm. In Simao District under Pu'er, many coffee farmers have their own drying yards and processing workshops. Along the winding mountain roads, drying yards and small workshops are scattered. After initial processing, coffee becomes green coffee beans, locally known as 'coffee rice,' which can be sold to green bean buyers. In such processing, if farmers do not manage wastewater properly, it causes pollution. This year, Simao District halted these scattered processing workshops, replacing them with centralized processing by qualified factories in the district. Just after a communication meeting at the village committee classroom, a coffee farmer was calculating this year's economic accounts downstairs. He was worried about this year's income: 'If I send it to the factory for processing, it costs about 0.15 to 0.20 yuan per kilogram, and it's troublesome to bring it back after initial processing; I can also sell on consignment at the factory, or simply sell the fresh fruit to the factory, but then the price won't be high.' When Nestlé agronomist Hou Jiazhi and his colleague Chen Wenchun went to the village group for training, villagers also discussed this topic. Hou Jiazhi mostly listened quietly and recorded the villagers' training needs. 'Environmental protection is important; everyone should cooperate with environmental policies,' Hou Jiazhi encouraged coffee farmers in the classroom. But privately, Hou Jiazhi also expressed his concerns, mainly about how much money Nestlé's small suppliers could earn this year. In previous years, each household's fresh fruit was mostly processed separately, and the coffee rice sent to Nestlé was also separate. Over the years, Nestlé has been training coffee farmers to use herbicides cautiously. All Nestlé suppliers must pass 4C certification, one of which is strict herbicide management. After the new policy, if fresh fruit is uniformly sent to factories for processing, those who used herbicides and those who didn't would be mixed; once mixed, cross-contamination could cause other 4C-certified farmers to fail Nestlé's testing. 'So, I'm thinking, maybe I can 'lobby' the villagers again to try not to use herbicides,' Hou Jiazhi said. The change I witnessed is just a small episode in the 30-plus years of local coffee industry development, but it already constitutes a microcosm of the close relationship between the enterprise and community development. In agricultural origins, this relationship is particularly vivid: water is shared, land is connected, and if one family's 'regenerative agriculture' is not done well, everyone is affected. Moreover, in a rural society based on acquaintance relationships, people are more likely to share a set of ideas and practices. Here, corporate social responsibility and ESG are no longer just words in strategic decisions and documents; they truly affect every plant and the livelihoods of local people, and also determine the space for enterprise development. This is why, since entering Yunnan in 1988, Nestlé has always promoted free coffee cultivation training and regenerative agriculture knowledge. Even now, only Nestlé has long-term training plans at the front end of the coffee industry chain, with professional teams stationed year-round and such extensive training coverage. ◎Hou Jiazhi conducting agronomy training in the field Nestlé's agronomy training is not only for its own suppliers but is always open to all coffee farmers. Farmers who have received agronomy assistance can freely choose which company to sell their coffee beans to. This long-term open agronomy training is costly, but Nestlé believes it is what they should do. 'To ensure long-term business development, we must ensure the quality at the front end of the supply chain,' said Zhao Xuemei, Nestlé Coffee China Communications and Innovation Director. 'We could also not intervene in cultivation, using only end-processing methods, simply purchasing coffee beans that meet quality requirements from the local area. In the short term, this is fine and logical; but in the long term, if the overall level of the community does not improve, environmental protection is not done well, and farmers' capabilities are not built, it will be difficult for us to obtain a continuous supply of high-quality coffee beans; our business and farmers' lives are closely linked and mutually reinforcing. This concept itself aligns with poverty alleviation and rural revitalization,' analyzed Zhang Qi, Nestlé Greater China Sustainability Director. 'We are not doing charity, but creating shared value,' Zhang Qi said. Business operations are embedded in social networks. From this dimension, 'creating shared value' is a moral responsibility, but ultimately it is the survival path of the enterprise. Topics like social responsibility and ESG usually fall on large enterprises not only because they have the strength, but also because they are more dependent on this network. 02 A Turning Point: Moving from the Provincial Capital to the Origin, Becoming Neighbors with Coffee Farmers Pu'er was a tea distribution center on the ancient Tea Horse Road. Tea has always been the first pillar industry here. In the city, almost every intersection has a road named with 'tea' or 'ming.' Now, the newly completed, large-scale coffee trading center heralds the rise of a new pillar. In Dakahe Village, not far from the city, the significance of coffee in life permeates in more specific ways. On a broad platform halfway up the mountain, there is an abandoned primary school, with teaching equipment removed, leaving only a fun, beautiful painting on the brick wall. A large coffee tree occupies the center, with red coffee cherries hanging solidly, a bird perched on top, and behind the tree are school buildings, farmhouses, and mountains. Villagers told me that this school was built with money from selling coffee back then. ◎Painting on the wall of the primary school campus (partial) Coffee's significance to villagers here has gone beyond livelihood and merged into cultural identity. A 'post-80s' coffee shop owner in Dakahe Village mentioned that in rural Pu'er, almost every 'post-80s' and 'post-90s' can be called 'second-generation coffee farmers' or 'third-generation coffee farmers.' The life transitions in their memories, such as buying motorcycles, color TVs, cars, or building new houses, are closely linked to the coffee market's fortunes. In the origin, old and young also share many coffee-related memories. An important part of those memories is Nestlé. In the early 1990s, farmers didn't recognize Nestlé at all; seeing their staff, besides being curious about foreigners, they judged from the patterns on their work clothes that they were 'selling quail eggs or collecting bird's nests.' Later, people found that 'they drove to the countryside, gave demonstrations, and looked very professional.' Now, Nestlé's agronomists have become part of the mountain community. As Hou Jiazhi walks through the village, he is greeted with 'Old Hou, Old Hou,' and almost everyone knows him. At farmhouses, coffee farmers treat him like an old friend, naturally picking up a stainless steel kettle to pour him a cup of Pu'er tea. 34 years, like the process of coffee taking root, for Nestlé, this is a process from 'floating' to truly 'settling.' An important turning point was in 2002, when Nestlé's agronomy service station moved from Kunming to Pu'er. ◎From 2003 to 2014, Nestlé operated in this small building at the national grain reserve in Pu'er, and annual purchases were also conducted here When first entering China, due to conditions at the time, Nestlé chose to cooperate with state-owned coffee companies and farms, a state that lasted 10 years. But this was not Nestlé's ideal state. According to Nestlé's business strategy, once entering a country's market, they would try to move the entire industry chain locally to achieve end-to-end control. In raw material origins worldwide, they establish direct contact with small farmers, going deep into the front end of production. In the first 10-plus years in Yunnan, although they did not directly and extensively do business with small farmers, Nestlé did not give up interacting with them; they reached out through experimental farm demonstrations, coffee seed promotion, and cultivation technique training. In 2002, the ten-year purchase and sales contract Nestlé signed with the state-owned coffee company expired. Nestlé's fourth agronomist, Yang Dimai, came to a fork in the road with two choices: one was to stay in the provincial capital Kunming; the other was to move the agronomy service department to Pu'er. This seemed like a choice of location, but it was actually a shift in business strategy: choosing the first path meant continuing along the established route, staying in the provincial capital, cooperating with large coffee companies, and purchasing at the back end; the second was to further intervene in the front end of the industry chain, truly going deep into the farmers. Yang Dimai chose the latter, moving the agronomy service department to Pu'er. His decision caused Nestlé to lose many local employees in Kunming and increased the cost of cooperating with large suppliers. The new supplier network to be woven would consist of hundreds of small nodes, requiring agronomists to invest a lot of effort, going deep bit by bit. But in the long run, the advantage is: agriculture naturally has strong localization characteristics; going deep into farmers and the front end of raw material supply is very important for controlling agricultural product quality. Nestlé also hoped to gradually no longer rely on the then state-owned farms and coffee middlemen, but instead cooperate directly with farmers, saving 20%-30% of the middleman's margin and giving all that money to the farmers. On the other hand, paying more attention to the weaker party in the value chain is an important part of Nestlé's business strategy. Before being sent to Yunnan, Yang Dimai worked on a coffee farm in Burundi, Africa, for 21 years and was familiar with rural life. Yang Dimai and his son and successor, Wu Te, both witnessed in the mountains that coffee farmers could not sell coffee directly and had to rely on middlemen, some of whom used deceptive means to make huge profits. If they cooperated directly with coffee farmers, Nestlé could leave the longest part of the industry chain to them, improving the living standards of the local community. 'At first, the agronomy department was so far away; small farmers couldn't bring coffee to sell themselves, and only when they see direct sales will they have the passion to grow coffee, and we can help them more,' Hou Jiazhi understood his former boss's decision this way. Now, Nestlé Coffee's procurement in Yunnan has formed this situation: a total of 1,089 suppliers, of which small farmers account for over 75%. 03 Talking About 'Growing Coffee,' Actually Doing Work on 'People' On land with almost no coffee cultivation foundation, how did Nestlé get coffee widely planted in the production area? The answer is obvious: it gathered the people in the area, especially small farmers. The next question is, why were small farmers willing to use their land to grow coffee with this foreign company? 'Growing corn earns 150 yuan per mu per year, while growing coffee can earn 2,000 yuan; after calculating, it's definitely to pull out the corn and grow coffee.' Coffee farmer Wang Jianshe was one of the first in the village to grow coffee; when talking about his decision to grow coffee in 1996, he said this. This is a very typical answer. 'Coffee farmers look at facts: whether coffee can be grown, and secondly, how much you can pay for my coffee,' Hou Jiazhi summarized the two main motivations for farmers to grow coffee. Ensuring 'coffee can be grown' and making farmers feel 'it can make money' is closely related to two decisions Nestlé made when entering Yunnan: one is the introduction of varieties, and the other is pricing. It can be said that these two points also laid the basic form and international positioning of the Yunnan production area in its early stages. The variety Nestlé introduced to Yunnan and promoted among farmers is the Catimor series. The Catimor series has strong resistance to leaf rust and high yield, but is generally considered to have average taste. For Nestlé, high-yield Catimor is suitable as raw material for coffee beverages with large demand, and the yield is guaranteed. For farmers without coffee cultivation experience at the time, planting Catimor had low risk, avoiding large-scale production reduction due to leaf rust. In terms of purchase price, Nestlé's pricing has always been based on the New York Futures Exchange coffee price, with a transparent mechanism and equal treatment for large and small suppliers. Nestlé also attaches great importance to timely and rapid dissemination of quotes, so all coffee farmers can check them in the public domain. This practice laid a smooth foundation for Nestlé's purchases over the years, reducing disputes over prices. Of course, introducing varieties and pricing only draw a basic framework. An important variable is that international futures prices fluctuate greatly, and the previous year's income directly determines the next year's planting situation. When the coffee market fluctuates, it is very common for farmers to 'dig up coffee trees, plant, and dig up again.' If land and farmers' livelihoods are entirely left to the market, farmers will suffer losses from repeated upheaval, and Nestlé's supply chain will also be unstable. At this time, Nestlé's agronomists play the role of 'companions.' It is precisely because of the agronomists' promotion, teaching, and companionship that local coffee farmers have improved in various aspects such as cultivation techniques, environmental concepts, economic benefits, and lifestyle. ◎Coffee Culture Festival held in Baoshan, Yunnan In Hou Jiazhi's computer, there are Excel spreadsheets listing the work requirements for the agronomist team, including fertilization, weeding, wastewater treatment, etc. These tasks seem to be about the land, but they are actually all centered on 'people': not only agronomy knowledge, but also environmental protection, lifestyle, and even financial management knowledge. For example, agronomy training materials should be mainly graphic so everyone can easily understand; the promotion of regenerative agriculture should let everyone see practical results; when coffee prices are good, warn coffee farmers of future risks; when prices are bad, persuade them not to easily dig up coffee trees; since 2012, when promoting 4C certification, because the certification focuses on environmental, social, and economic indicators of the coffee industry, the agronomists' work has covered all aspects of farmers' lives, including details like whether the placement of chemical fertilizers and pesticides at home poses a danger to the elderly and children, and whether the cup for rinsing the mouth is separated from pesticide bottles. Hou Jiazhi, a Guangxi native sent to Yunnan by Nestlé for 26 years, has visited almost every village in the production area. In the years before mobile navigation was widespread, Hou Jiazhi and other agronomists relied entirely on paper, pen, and memory to remember the way to farmers' homes. By 2013, before Nestlé issued iPads to agronomists, he had accumulated 50 notebooks recording farmers' situations. ◎Before smartphones became widespread, Hou Jiazhi had accumulated over 50 work notebooks One thing still moves Hou Jiazhi when he mentions it: more than 10 years ago, he was doing agronomy training in a Dai village. The weather was fine when he went, but when he left, a torrential rain suddenly started. At that time, the mountain road network was not as good as now; agronomists going out for training often had to change tires three times a day. The rain made the roads even muddier. What Hou Jiazhi didn't expect was that that day, many villagers came out, braving the heavy rain, accompanying his car for a full kilometer until they reached the main road. 'They were afraid my car would roll over or get stuck in the mud and not get out; they said if the car got stuck, everyone could push it out together.' I paid special attention to Nestlé's posture in engaging with the local area. Although this engagement is deep, it has always been 'cooperative' and with full respect, without disturbing local customs and order. This comes from Nestlé's cultural care that values equality and fairness. This care is revealed in many details of interaction. Wang Hai, General Manager of Nestlé Coffee Center, mentioned: 'In the early years, when Nestlé cooperated with large coffee companies, they rarely participated in their dinner parties, not because the coffee companies wanted to do something through dinner parties, but because we would consider, what would small farmers think if they saw it?' The agronomist team goes to the countryside for training with 'thoughtful respect.' Rather than lecturing, agronomists spend more time listening to what coffee farmers are saying, what difficulties they encounter, and registering them one by one. When visiting farmers, Hou Jiazhi often makes suggestions in this format: 'Old fellow, actually, it would be better for you to...' An exception was at Guo Jiankang's house, who was building a house. He found that the temporary electrical wiring was dangerous and directly said twice: 'Old fellow, it's wrong to wire it like this.' Nestlé's agronomy training is also different from the so-called 'training' many companies do to expand markets. During training, agronomists teach specialized agronomy knowledge and market conditions according to the training needs raised by coffee farmers, but rarely involve Nestlé's corporate interests. Hou Jiazhi also mentioned that they always encourage coffee farmers to sell coffee to companies that offer higher prices. In his understanding, agronomy training is very important for Nestlé's long-term development: 'We emphasize a triple win, balancing the environment, the company, and farmers; improving farmers' lives and doing environmental protection well is paving the way for the company's future.' 04 Lifestyle Changes Under Market Economy Rules Unlike the responsive attitude of Nestlé agronomists during training, on the procurement side, Nestlé's face is serious. The rules of the market economy measure everything. It was the winter of 1997, and a female coffee farmer brought a sack of coffee rice to the purchase station. The person receiving her was agronomist Li Sunqiang. The coffee beans brought by the farmer did not meet Nestlé's standards, and Li Sunqiang rejected them. But perhaps because delivering coffee was not easy, or for some other reason, the farmer was very angry and then sat on the ground crying. This made Li Sunqiang feel very embarrassed; he took out 50 yuan himself to buy this sack of coffee rice. Coffee farmer Wang Biheng was also deeply impressed by Nestlé's product testing process. He remembered that when he first delivered coffee in the 1990s, Nestlé did not yet have the testing equipment it has now, relying entirely on agronomists' visual inspection. 'With one shovel, he said it could be accepted, and I was very happy; with another shovel, he looked and said it couldn't be accepted. I said a lot of nice things, but if it couldn't be accepted, it couldn't be accepted; nothing I said helped.' This ups and downs experience made Wang Biheng very frustrated. 'Nestlé has too many requirements,' he said. In the rural China that had just begun reform and opening up, similar clashes between traditional lifestyles and market economy rules were not uncommon. The rules of the market economy and a company's fair and just image were established through such friction. ◎Scene at the first Pu'er International Fine Coffee Expo Queuing once a year at the old Nestlé purchase station is almost a collective memory for older coffee farmers. The gatekeeper at the grain reserve still remembers: every time the purchase season began, the main road outside would be blocked, sometimes queuing for a week, with farmers living in their cars, buying food and daily necessities from roadside shops. Without intervention, queue-jumping would frequently occur in such a line. But outside the purchase station, order was good, and few people jumped the queue because once discovered, they would definitely be asked to leave. Maintaining order outside the purchase station was even a 'family tradition' of two generations of Nestlé agronomy department heads, Yang Dimai and Wu Te—they both had experience going into the line to maintain order and find queue-jumpers. Wang Biheng also had a belly full of bittersweet stories about this long line in front of the purchase station. One year, the battery of the large truck Wang Biheng drove died, and he wanted to go to the purchase station to replace it. Unexpectedly, he ran into Yang Dimai, who thought he was jumping the queue and firmly wanted to ask him to leave. Wang hurriedly explained, but Yang couldn't understand Chinese. The two called a translator and argued for a long time before it was clarified. There were also happy things. Wang Biheng remembered clearly that one year, a large truck delivering coffee broke the utility pole at the entrance of the reserve, causing a power outage, and Nestlé's purchases had to be interrupted. This was a disaster for farmers who had come to deliver coffee and had been waiting for a long time—they had to wait until the power was restored inside before purchases could continue. Wang Biheng and many other farmers waited dejectedly outside the station for three days, but he didn't expect that on the third day, as futures exchange prices rose, Nestlé also updated its quote: an increase of 0.5 yuan per kilogram, and the 10 tons of green coffee beans he brought earned an extra 5,000 yuan. It is also in the cycle of planting and purchasing year after year that farmers, who had just emerged from the collective economy, adapted to such an 'individualized' state of existence—their self-drive is obvious, which is the money from selling coffee beans; but what they need to do is also difficult, having to meet standards such as environmental protection and product quality. They also need to constantly pay attention to Nestlé's quotes for coffee beans, striving to rush to the purchase station when the quote is best to sell their coffee. This life of self-motivation, self-planning, and directly facing market risks is different from the traditional rural life before the reform and opening up, and is also the typical situation Chinese people face in the modernization transition. To some extent, this is also the essence of 'shared value,' or 'rural revitalization': not giving money, not giving production materials, but finding a sustainable livelihood and using it to promote a transformation of thinking and lifestyle. 05 Behind 'Creating Shared Value': Influence and Trust Vote Having just moved from Beijing to Pu'er for a year, coffee trader Han Han felt that as soon as the harvest season arrived, coffee middlemen coming to Pu'er would tacitly enter a vacuum, and only after passing it could they hear the tight drumbeat: 'Everyone holds their breath, waiting for Nestlé's quote; their price is the guide price, and only then do the major farms start quoting.' This influence cannot be fully explained from an economic perspective. In terms of purchase volume, Nestlé was the main buyer during the initial stage of Yunnan coffee cultivation, but by 2013, Nestlé's purchases accounted for less than one-third of the province's annual output. Ten years later today, according to official government data, Yunnan's total output in the last purchase season reached 136,000 tons, and Nestlé's annual purchase volume has stabilized at around 10,000 tons. Although still the largest buyer, its share is less than one-tenth. At this time, all parties in the market still recognize Nestlé's quote because it represents a credible market signal. Some coffee farmers say 'Nestlé has too many requirements and is unyielding.' But they also admit that Nestlé is fair, which gives them a full sense of security. The procurement end is prone to corruption, and once corruption occurs, the impact on small farmers is the most severe. They often have fewer 'relationship' resources. 'Nestlé buys coffee without looking at relationships; we are all very assured. Some coffee brands only look at relationships, not quality; even if we bring the best coffee beans, they won't accept them,' said coffee farmer Lin Yang from Dakahe Village. Some coffee company staff engage in benefit transfers during procurement; some people require farmers to buy their provided tools and fertilizers before accepting coffee beans. 'Many suppliers come and go, but Nestlé has always been there. Their price is not the highest, but with them, we feel very assured,' said Lin Yang, who has grown coffee for 28 years. Farmers holding similar views are not a minority. After 2018, the domestic market expanded rapidly, and coffee merchants coming to Yunnan were as numerous as crucian carp crossing the river, but obviously, locals have a greater preference for 'long-term settlers.' As Lin Yang's words predicted, when doing business with companies, many small farmers tend to choose 'reliable' companies for long-term cooperation rather than the 'highest bidder.' What surprised me slightly was that almost all suppliers who have cooperated with Nestlé mention that Nestlé pays very quickly; in the early years, it was cash on the spot; later, it changed to bank transfer, arriving within 5 working days, with no exceptions over the years. Fast payment is likely to be overlooked in an environment where commitments are generally strictly kept. But in the production area, this has become a highly recognized highlight. Digging deeper, the reality behind it is: in the past long period, the coffee market in the production area was not standardized, and many coffee farmers had experiences of being owed coffee payments or even defaulted on. There were also many companies that did not accept goods themselves but only resold them, and if they couldn't sell, they returned the coffee. In such an environment, Nestlé, which paid promptly, established a 'reliable' image. This sense of trust and security especially becomes an important reference factor in transactions. Over 34 years, Nestlé's influence in the Yunnan coffee production area is due to its adherence to the principle of fairness and its efforts to respond to the needs of the local community while meeting its own operational needs. Nestlé has played an important role in helping farmers in the production area 'escape poverty.' ◎Nestlé Coffee sponsored the 'Yunnan Coffee Flavor Map' event hosted by Torch Coffee Lab Today, the coffee industry has come to another turning point: Before 2018, coffee was more often exported as an agricultural raw material, and 'Yunnan' as a production area was unknown; many people didn't even know Yunnan produced coffee. In the past two years, with the expansion of the domestic market and government promotion, the visibility of the production area has increased rapidly, and the call for 'Yunnan beans breaking through international futures prices and establishing an independent price system' has grown louder. New gaps have appeared between Nestlé and the production area. Nestlé has made efforts to adapt to Yunnan's changes. Environmental changes have always been a major threat to the coffee industry; recently, significant production reductions in Brazil and Colombia may cause price increases. Nestlé has launched many plans for environmental protection and regenerative agriculture in Yunnan, maintaining the stability of the Yunnan production area at the source. On the product side, it has launched multiple Yunnan-exclusive series of coffee, allowing people to know Yunnan coffee directly from supermarket shelves. Nestlé's Blue Bottle also sells Yunnan beans. But honestly, in making ordinary consumers know 'Yunnan beans,' brands like Luckin, Manner, and Seesaw have played a greater role. At the Yunnan global promotion conference at the Ministry of Foreign Affairs Blue Hall in February 2017, Minister Wang Yi specifically praised Yunnan coffee: '95% of China's coffee comes from Yunnan; not only China, but Yunnan's coffee raw materials are also exported in large quantities to foreign countries for use by Nestlé and Starbucks. The coffee I just drank is called Hougu. This coffee is not an exaggeration; it is the best I have tasted among all countries' coffees I have drunk around the world.' But currently, Hougu, a local brand hoping to integrate the local coffee industry through capital, is mired in bankruptcy crisis. Next, how to respond to the changes in the Yunnan production area and continue to create shared value is a new question mark drawn by the host country for Nestlé. Acknowledgments Thanks to Ms. Wang Ruohan for her selfless help during the material collection stage; her book 'Creating Shared Value' provided important reference for this article. -END-