Latest news with #ChinaOperations
CTV News
2 hours ago
- Business
- CTV News
Starbucks says it is not currently considering a full sale of its China operations
U.S. cafe chain Starbucks said it is not currently considering a full sale of its China operations after Chinese financial magazine Caixin reported that it was, without disclosing where it obtained the information. Starbucks has held preliminary talks with more than a dozen potential buyers, Caixin also reported on Monday, citing sources who did not specify what was for sale. 'I can confirm Starbucks is not currently considering a full sale of its China operations,' a company spokesperson said in a statement. Starbucks kicked off a formal sale process of its China operations in May, inviting interested buyers to submit answers to a list of questions by the end of last week, said three sources with knowledge of the situation. The Seattle-based company, advised by Goldman Sachs, asked interested buyers about their corporate culture, management style, sustainability measures, how they treat employees as well as the potential deal structure and business plan for Starbucks China, said the people, who declined to be named as the information was not public. Starbucks however has not decided yet whether to sell a controlling or a minority stake in its China business, or whether it will keep some parts of its China operations such as its supply chain, said two of the sources. Starbucks declined to comment further on the details of the sale process. Goldman Sachs did not immediately respond to a Reuters request for comment. Starbucks opened its 1.5 billion yuan (US$209 million) Coffee Innovation Park in the city of Kunshan, neighboring Shanghai, in 2023. The 80,000-square-meter roasting plant has the capacity to supply all of Starbucks China's stores. More than 20 institutions responded to Starbucks, including a number of private equity firms, one of the sources said. Starbucks is expected to shortlist buyers for next steps, two of them said. 'The purpose was to let everyone tell their story freely and choose whatever the best prospect it is and proceed,' one of them said. Reuters reported in February KKR & Co, Fountainvest Partners and PAG are among buyout firms interested in acquiring a stake in Starbucks' China business. The sale comes as Starbucks has lost market share to lower-priced Chinese rivals in recent years as consumers tighten their purse strings and ever-cheaper options from fast-growing rivals Luckin and Cotti made it more difficult to justify prices of around 30 yuan ($4.20) per cup of coffee. Starbucks's market share in China has declined from 34 per cent in 2019 to 14 per cent in 2024, according to data from Euromonitor International, a market research provider. Price pressures have increased as big e-commerce firms in China offer consumer subsidies to stimulate their food delivery and 'instant retail' businesses, referring to deliveries made within one hour. These subsidies and coupons have pushed the price of a cup of coffee even lower, meaning consumers are often paying less than five yuan per cup of coffee delivered to their door. Earlier this month, Starbucks announced its first-ever price drop in China, lowering the price of some non-coffee iced drinks by an average of five yuan. (Reporting by Anuja Bharat Mistry in Bangaluru, Brenda Goh and Casey Hall in Shanghai and Kane Wu in Hong Kong; Editing by Christopher Cushing)
South China Morning Post
7 hours ago
- Business
- South China Morning Post
Starbucks denies it is considering a full sale of its China operations
Starbucks has denied reports that it is in talks with private equity firms to sell the entirety of its China operations, as it faces slowing sales and intensifying competition from domestic rivals. 'We have a world-class team in China, and a strong brand,' the Seattle-based coffee chain said in a statement on Tuesday. 'We see significant long-term potential in the market and are evaluating the best ways to capture the future growth opportunities.' The statement came after local media outlet Caixin Global reported on Monday, citing sources, that Starbucks was weighing the sale of its China unit, drawing potential buyers including Hillhouse Investment and Trustar Capital, the private equity affiliate of McDonald's China owner Citic Capital. Starbucks began approaching private equity firms about a possible stake sale in May, according to a Bloomberg report. Baristas at work at a Starbucks Reserve Roastery in Shanghai. Photo: Reuters Starbucks shares rose less than 1 per cent in after-hours trading in New York, closing at US$92.34. The shares have fallen nearly 20 per cent from a peak in March.
Yahoo
12 hours ago
- Business
- Yahoo
Starbucks says it is not currently considering a full sale of its China operations
(Reuters) -U.S. cafe chain Starbucks said it is not currently considering a full sale of its China operations, after Chinese financial magazine Caixin reported that it was without disclosing where it obtained the information. Starbucks has held preliminary talks with more than a dozen potential buyers, Caixin also reported on Monday citing sources who did not specify what was for sale. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
12 hours ago
- Business
- Reuters
Starbucks says it is not currently considering a full sale of its China operations
June 24 (Reuters) - U.S. cafe chain Starbucks (SBUX.O), opens new tab said it is not currently considering a full sale of its China operations, after Chinese financial magazine Caixin reported that it was without disclosing where it obtained the information. Starbucks has held preliminary talks with more than a dozen potential buyers, Caixin also reported on Monday citing sources who did not specify what was for sale.
Yahoo
12 hours ago
- Business
- Yahoo
Starbucks says it is not currently considering a full sale of its China operations
(Reuters) -U.S. cafe chain Starbucks said it is not currently considering a full sale of its China operations, after Chinese financial magazine Caixin reported that it was without disclosing where it obtained the information. Starbucks has held preliminary talks with more than a dozen potential buyers, Caixin also reported on Monday citing sources who did not specify what was for sale.
