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Ownership permits Starbucks to rise fast 2011-06-03 09:34
STARBUCKS Coffee International will acquire full ownership of more than half of its retail stores on China's mainland from joint venture partner Maxim's Caterers Ltd under its strategy to speed up expansion in China and build it into its second home market.
The deal allows the world's largest coffee chain to take full control of its business in central, south and west China, including Guangdong, Hainan, Sichuan, Shaanxi and Hubei provinces as well as Chongqing, according to its statement. No financial details were unveiled. "Full ownership of our stores in central, south and western China is part of our broader strategy to build China up as our second home market outside of the United States," said John Culver, president of Starbucks Coffee International, yesterday. "It also allows us to accelerate growth as we look to achieve our goal of having 1,500 stores across the country by 2015," he added. Starbucks now runs about 450 stores on the mainland since its first entry in 1998. As part of the deal, Hong Kong-based Maxim's Caterers Ltd will take full control of Starbucks' business in Hong Kong and Macau. Analysts said foreign companies have been pursuing more independent operations in China after years of cooperation as they want to improve management and accelerate expansion to boost profitability. "What appeals to Starbucks is the huge market potential in China," said Lin Yue, chief consultant at Lynear Consulting Co. Source:Shanghai Daily
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