Starbucks to increase S China ops equity stake to 55%
Starbucks Demonstrates Commitment to China with an Agreement to Increase Equity Stake in Southern China Operations and Expand Relationship with Maxim's Caterers Limited
Starbucks Coffee International, Inc., a wholly-owned subsidiary of Starbucks Coffee Company (Nasdaq:SBUX), announced that it has signed an agreement to increase its equity position in its Southern China operations.
Upon closing of the transaction, which is expected within the next 30 days, Starbucks will increase its ownership in Coffee Concepts (Southern China) Ltd. to 51 percent, up from the five percent it previously held. Coffee Concepts (Southern China) Ltd. is a joint venture between Mei-Xin (International) Ltd., a subsidiary of Maxim's Caterers Limited, and Starbucks Coffee International, Inc. and the authorized licensee for operation of Starbucks Stores in Guandong province.
Starbucks is continuing its relationship with Maxim's for Hong Kong and Macau by extending the term of its joint venture for the operation of Starbucks stores in these markets.
As part of the transaction, Mei-Xin (International) Ltd., will also acquire a 30 percent interest in a joint venture to operate Starbucks stores in Chengdu. Starbucks Coffee International, Inc. will retain the remaining 70 percent of this business. This 70/30 joint venture currently only has plans to open Starbucks stores in Chengdu, which the companies anticipate opening later this year.
"The decision to expand our relationship with Maxim's is a sign of our confidence and continued commitment to building a great business throughout China," said Christine Day, president, Asia Pacific Group, Starbucks Coffee International. "Maxim's has done an incredible job of building the brand in both Hong Kong and Southern China, and we look forward to continuing the relationship and leveraging the resources of both companies to bring the best coffee and coffeehouse experience to other cities throughout China."
"We are very excited about new developments in our relationship," said Michael Wu, managing director, Maxim's Caterers Ltd. "We have worked hard to gain acceptance of the Starbucks Experience in Southern China and are proud of what we have achieved for the Starbucks brand in such a short time. We look forward to the opportunity to continue working with Starbucks in order to grow the business further in China."
Starbucks opened its first store in Hong Kong in May 2000 and currently has 51 stores. Guangzhou opened in August 2003 and has 12 stores in Southern China, including six stores in Guangzhou and six stores in Shenzhen.
Starbucks Coffee International is a wholly owned subsidiary of Starbucks Coffee Company, the leading retailer, roaster and brand of specialty coffee in the world, with more than 9,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim. The Company is committed to offering the highest quality coffee and the Starbucks Experience while conducting its business in ways that produce social, environmental and economic benefits for communities in which it does business. The Company's brand portfolio provides a wide variety of consumer products. Tazo® Tea's line of innovative premium teas and Hear Music(TM) exceptional compact discs enhance the Starbucks Experience through best-of-class products.
Maxim's Caterers Ltd., founded in 1956, is now the largest catering conglomerate in Hong Kong, operating over 60 brands and over 360 outlets. The Group offers a diversified service comprising Chinese, Western, Japanese, Southeast Asian and Western restaurants, fast food outlets, cakes shops, Starbucks Coffee and institutional catering units.
The Group has been exploring new grounds within the catering industry; for example the successful launch of the new bakery concept store, Simply Bread and the microwave meal box at 7-Eleven and Wellcome outlets in 2004 have brought business to another level. Moreover, the Group will be operating a Chinese restaurant and a bakery house in Hong Kong Disneyland in September 2005, which has set another milestone for the Group.
Upon closing of the transaction, which is expected within the next 30 days, Starbucks will increase its ownership in Coffee Concepts (Southern China) Ltd. to 51 percent, up from the five percent it previously held. Coffee Concepts (Southern China) Ltd. is a joint venture between Mei-Xin (International) Ltd., a subsidiary of Maxim's Caterers Limited, and Starbucks Coffee International, Inc. and the authorized licensee for operation of Starbucks Stores in Guandong province.
Starbucks is continuing its relationship with Maxim's for Hong Kong and Macau by extending the term of its joint venture for the operation of Starbucks stores in these markets.
As part of the transaction, Mei-Xin (International) Ltd., will also acquire a 30 percent interest in a joint venture to operate Starbucks stores in Chengdu. Starbucks Coffee International, Inc. will retain the remaining 70 percent of this business. This 70/30 joint venture currently only has plans to open Starbucks stores in Chengdu, which the companies anticipate opening later this year.
"The decision to expand our relationship with Maxim's is a sign of our confidence and continued commitment to building a great business throughout China," said Christine Day, president, Asia Pacific Group, Starbucks Coffee International. "Maxim's has done an incredible job of building the brand in both Hong Kong and Southern China, and we look forward to continuing the relationship and leveraging the resources of both companies to bring the best coffee and coffeehouse experience to other cities throughout China."
"We are very excited about new developments in our relationship," said Michael Wu, managing director, Maxim's Caterers Ltd. "We have worked hard to gain acceptance of the Starbucks Experience in Southern China and are proud of what we have achieved for the Starbucks brand in such a short time. We look forward to the opportunity to continue working with Starbucks in order to grow the business further in China."
Starbucks opened its first store in Hong Kong in May 2000 and currently has 51 stores. Guangzhou opened in August 2003 and has 12 stores in Southern China, including six stores in Guangzhou and six stores in Shenzhen.
Starbucks Coffee International is a wholly owned subsidiary of Starbucks Coffee Company, the leading retailer, roaster and brand of specialty coffee in the world, with more than 9,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim. The Company is committed to offering the highest quality coffee and the Starbucks Experience while conducting its business in ways that produce social, environmental and economic benefits for communities in which it does business. The Company's brand portfolio provides a wide variety of consumer products. Tazo® Tea's line of innovative premium teas and Hear Music(TM) exceptional compact discs enhance the Starbucks Experience through best-of-class products.
Maxim's Caterers Ltd., founded in 1956, is now the largest catering conglomerate in Hong Kong, operating over 60 brands and over 360 outlets. The Group offers a diversified service comprising Chinese, Western, Japanese, Southeast Asian and Western restaurants, fast food outlets, cakes shops, Starbucks Coffee and institutional catering units.
The Group has been exploring new grounds within the catering industry; for example the successful launch of the new bakery concept store, Simply Bread and the microwave meal box at 7-Eleven and Wellcome outlets in 2004 have brought business to another level. Moreover, the Group will be operating a Chinese restaurant and a bakery house in Hong Kong Disneyland in September 2005, which has set another milestone for the Group.
