Starbucks Sells China Business Stake Amidst Competition from Luckin Coffee
AP News reports Starbucks is partnering with Boyu Capital to operate its stores in China through a joint venture, with Boyu acquiring a 60% interest for $4 billion. Starbucks will retain 40% ownership and the Starbucks brand. This partnership aims to accelerate growth, especially in smaller Chinese cities, leveraging Boyu’s local expertise. The deal, expected to finalize in the second quarter of Starbucks’ 2026 fiscal year, comes as Starbucks faces competition from local brands and looks to expand its presence in China, its second-largest market.
John Q. Hosedrinker