Starbucks denies full sale of China operations
Starbucks is shutting down rumors about selling off all its China operations.
While the company did start a formal sale process in May 2024, it's just exploring options with more than 20 potential buyers—including big names like KKR and FountainVest.
With Goldman Sachs advising, Starbucks says it's looking for offers that fit its vibe and management style.
China is Starbucks's 2nd-biggest market
China is Starbucks's second-biggest market, but things have gotten tough.
Its market share dropped from 34% to just 14% since 2019, thanks to fierce competition from local brands like Luckin and Cotti.
To keep up, Starbucks has cut prices on some drinks and opened a huge $209 million Coffee Innovation Park near Shanghai.
Why Starbucks is considering selling part of its business
Local coffee chains and online stores are selling cups for less than 5 yuan—making it hard for Starbucks to compete on price alone.
That's why the company might sell part of its business or keep certain parts (like supply chain) while figuring out how to stay relevant in China's fast-changing coffee scene.