LUCKIN Coffee Inc.’s new teas pulled in more customers to its rapidly expanding network of stores in China in the third quarter, helping the Starbucks rival post a smaller-than-expected loss.

Luckin, which also expected its fourth-quarter revenue to beat estimates, has benefited from a growing love for caffeine in China’s major cities such as Beijing and Shanghai, but tea still dominates smaller towns.

The company in July introduced fruit-flavored teas and tea macchiatos at its outlets, and teas constituted 20 percent of freshly brewed drinks in the third quarter.

Luckin attracted 8 million new customers during the period, “partly driven by the success of Luckin Tea products,” chief financial officer Reinout Schakel said on a conference call Wednesday.

Looking to build on the momentum, the company opened its first independently branded “Luckin Tea” store in October.

Luckin’s results follow a strong show in China by Starbucks Corp., largely credited with making a nation of tea-lovers embrace coffee.

Since its launch in 2017, Luckin has not shied away from aggressively opening stores as part of its goal of overtaking Starbucks in China by the end of the year. (SD-Agencies)