"Seattle-based coffee giant Starbucks is selling a 60% stake in its mainland China coffee shop business to Chinese private equity firm Boyu Capital in a deal valued at about $4 billion. Expected to be finalized in the second quarter of 2026, the deal comes amidst rapid expansion of Chinese competitors such as Luckin Coffee and Cotti Coffee, while promising to reshape the coffee retail landscape in Starbucks' second-largest market behind the United States."
"Under the agreement, Starbucks and Boyu will form a joint venture to own and operate roughly 8,000 existing Starbucks stores. Starbucks will maintain a 40% stake in the retail business while continuing to own and license its brand and intellectual property. The venture aims to expand Starbucks' retail footprint in China to as many as 20,000 locations, with a focus on "accelerating innovation in beverages and digital platforms" and expansion into new cities. The business will continue to be headquartered in Shanghai."
Starbucks is selling a 60% stake in its mainland China coffee shop business to Boyu Capital for about $4 billion, with closing expected in the second quarter of 2026. The transaction creates a joint venture that will own and operate roughly 8,000 existing stores while Starbucks retains a 40% stake and ownership and licensing of its brand and intellectual property. The venture plans to grow the retail footprint to as many as 20,000 locations, emphasize beverage and digital innovation, and expand into smaller cities and new regions. Starbucks also invests in green coffee production in Yunnan and in roasted coffee production and distribution.
Read at Daily Coffee News by Roast Magazine
Unable to calculate read time
Collection
[
|
...
]