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Source: People's Republic of China in Russian – People's Republic of China in Russian –
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Source: People's Republic of China – State Council News
SHANGHAI, Nov. 4 (Xinhua) — Starbucks Coffee Company, the American coffee giant, announced on Tuesday that the company has entered into a joint venture agreement with Boyu Capital, a leading Chinese alternative investment firm, to manage Starbucks' retail operations in China.
Under the agreement, Boyu and Starbucks will operate the joint venture, with Boyu holding a 60 percent stake in Starbucks' retail operations in China and Starbucks retaining the remaining 40 percent stake in the joint venture, continuing to own the Starbucks brand and licensing the Starbucks brand and intellectual property to the new venture.
Boyu will acquire its stake at a cash-and-debt valuation of approximately US$4 billion.
“Boyu’s experience and local market expertise will help accelerate our growth in China, particularly as we expand into smaller cities and new regions,” said Brian Niccol, chairman and chief executive officer of Starbucks Coffee Company.
The new joint venture will also be headquartered in Shanghai (eastern China). It currently operates 8,000 coffee shops in China (excluding Hong Kong, Macao, and Taiwan). Plans are to eventually increase this number to 20,000.
With the creation of the joint venture, Starbucks expects its total value in the Chinese retail sector to exceed US$13 billion.
Boyu partner Huang Yuzheng noted that over the 26 years of operations in China, Starbucks has successfully built an iconic brand and established strong ties with Chinese consumers.
In 1999, Starbucks opened its first store in Beijing, marking the company's official entry into China's interior market. Boyu was founded in 2011. -0-
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