Starbucks buys out East China business for US$1.3 billion
The company’s biggest deal ever gives it sole ownership of all 2,800 China stores
China will acquire the remaining 50% stake of its stores in Shanghai, Zhejiang and Jiangsu from Uni-President Enterprises and President Chain Store, reports Caixin. The JV accounted for 1,300 stores in the country, including 600 in Shanghai.
The China market offers a “huge runway of growth,” according to Starbucks President Kevin Johnson, and the focus on the market led the coffee giant to abandon its struggling Teavana chain in the US.
The Seattle-based company announced a huge promotional campaign in partnership with Tencent to leverage the popularity of WeChat’s mobile wallet earlier this year.