Back to the archive

The encyclopedia · Strategy & Leadership · Strategic decision · 2025

Civet Coffee built a chain on a kopi luwak gimmick — the gimmick wore off

A premium coffee chain built on the exotic kopi luwak gimmick closed flagship stores as China's coffee boom left gimmick concepts behind

Civet Coffee · 猫屎咖啡 · 2025

What happened

猫屎咖啡 (Civet Coffee) built its brand around a single exotic ingredient: kopi luwak, the gourmet coffee bean that passes through the digestive tract of civet cats. The chain positioned itself as a premium coffee experience in China, opening stores in Guangzhou's top shopping districts and other first-tier city locations. The unusual name and the novelty of civet-cat coffee drew curious customers and media attention during China's early coffee boom.

By 2025, the chain had closed multiple landmark stores in Guangzhou and was in retreat. The brand that had once stood out for its exotic gimmick now seemed outdated in a market that had matured rapidly. China's coffee drinkers had moved from novelty to quality and convenience: they wanted third-wave specialty roasts from boutique brands, or the ultra-convenient ¥9.9 pour-over from Luckin and Kudi.

The decline reflected the broader maturation of China's coffee market. The first phase was about novelty and status — trying something different in a stylish setting. The second phase, which arrived by 2025, was about daily habit — quality, convenience, and value. Brands built on the first phase struggled to survive the second. Civet Coffee's gimmick, which had once been its biggest asset, had become its biggest liability.

Why it happened

  • The civet-coffee gimmick attracted curiosity but not repeat business — once customers had tried it once, there was no reason to return.
  • China's coffee market matured from novelty-seeking to habit-driven, and a brand built on exotic ingredients could not compete on daily convenience and value.
  • The rise of ¥9.9 coffee chains (Luckin, Kudi, Cotti) trained consumers to see even ¥25-30 coffee as expensive, squeezing premium gimmick brands out of the middle.
  • Animal-welfare concerns around civet cat farming created negative press that turned off the environmentally conscious urban consumers the chain relied on.
What it costMultiple landmark stores closed, brand in retreatcostly

The lesson

A novelty gimmick sells the first cup but not the thousandth — in a market that matures fast, being interesting is a worse position than being reliable.

Sources

spotted an error? The club wants to know.

Comments · 0

    Sign in to join the comments.

    More like this

    Somewhere, someone solved the problem this company failed at. 2nd Opinion →