Shanghai — US coffee chain Starbucks has announced it will take full control of its mainland China outlets in a $1.3bn deal, the largest single acquisition in the company’s history. It will buy the remaining 50% of its East China joint venture from Taiwan’s food and beverage giant Uni-President, according to a company statement issued on Thursday. Starbucks will gain full control of 1,300 stores in 25 cities, including commercial hub Shanghai, from Uni-President Enterprises and a subsidiary, the statement said. Starbucks has seen rapid expansion in China, where it opened its first cafe 17 years ago. By 2011, the company had 400 outlets while today it has nearly 600 in Shanghai alone. Starbucks CEO Kevin Johnson described the move as "a critical next step" that can help fulfil its goal of almost doubling the number of its mainland outlets to 5,000 from the current 2,800. "Unifying the Starbucks business under a full company-operated structure in China reinforces our commitment to the...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.