Starbucks Sells 60% of Its Stake in China for $4 Billion

SadaNews - Starbucks has announced that it will sell a majority stake in its operations in China to investment company "Boy Capital" in a deal valued at approximately $4 billion, marking one of the largest exit deals by a global consumer company in the Chinese market in recent years.

Under the agreement, a joint venture will be established between the two parties, wherein "Boy Capital" will own up to 60% of Starbucks' retail business in China, while the American company will retain a 40% stake in the joint venture.

Both parties confirmed that Starbucks will continue to own the brand and intellectual property rights and will grant licenses to the new entity that will operate cafés in China.

The company expects the total value of its business in China to exceed $13 billion, which includes the proceeds from the sale of the controlling stake to "Boy Capital" as well as the value of the stake that Starbucks will retain in the joint venture.

Starbucks' move to exit the Chinese market comes at a time when the company is facing a sharp decline in its market share in recent years, due to intensified competition from local coffee chains offering products at lower prices amid an economic slowdown that has changed consumer spending patterns.

According to data from Euromonitor International, Starbucks' market share in China - which includes more than one-fifth of its cafés worldwide - dropped to 14% in 2024, down from 34% in 2019, reflecting significant shifts in consumer preferences within the company's second-largest market after the United States.