Starbucks has received proposals from potential investors for your business in China, most of whom seek a majority participation in the operation, people said familiar with the subject.
The Seattle -based company is currently in the process of analyzing the proposals and selecting a group of potential investors for a next round of bids, the sources said, who asked not to be identified due to the privacy of the subject. The company can share financial and operational details with these investors to help them evaluate the appreciation of their Chinese assets, they added.
Although Starbucks’s favorite option was to sell a minority stake to a partner who can help resume growth in operations in China, it can now consider selling a larger participation, based on appreciation and other factors, the sources said. Potential partners, which include industry players and private equitythey presented non -binding proposals in June, and most want a majority participation, as this may give them decision -making powers and be more aligned with their investment strategies, they explained.
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Starbucks shares rose 2.6% at 9:31 am in New York on Wednesday (9). The role had already advanced 4% this year until the closing of Tuesday (8).
Starbucks’ business review in China is still at an early stage, and no final decision has been made about the structure, appreciation and potential buyers. In a statement, Starbucks said he saw “significant long -term potential in China.”
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“We are still committed to China and want to maintain a relevant participation in the business,” said Starbucks.
The coffee giant faced a drop in sales in China, although comparable sales remained stable in the last quarter after four periods of decline. In response, the company has launched products that serve more directly to local tastes, as consumers previously attracted to the prestige of more expensive foreign chains are retracting in the face of economic uncertainty. At the same time, cheaper domestic competitors emerged, including Luckin Coffee Inc., which in 2023 exceeded Starbucks to become the largest coffee shop in the country.
Starbucks has adjusted its menu to regain Chinese customers, including introducing more sugar -free options and price reduction in various tea -based drinks. Its first growth director for China will follow a partnership strategy with entertainment brands and pop culture icons to attract younger consumers.
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A Bloomberg News In May he said that Starbucks had started a process to review his business in China – his second largest market – including a possible sale of share. The transaction could value assets in several billion dollars.
The company said last month that it is not considering the total sale of its Chinese unit.
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