Starbucks ( SBUX.O & Starbucks Denies ) said it is not currently considering a full sale of its China operations, refuting a recent report by Chinese financial magazine Caixin. The publication claimed the company had held preliminary talks with more than a dozen potential buyers, although it did not specify its source.
“I can confirm Starbucks is not currently considering a full sale of its China operations,” a company spokesperson said.
According to three sources with knowledge of the matter, Starbucks launched a formal sale process for its China business in May, inviting interested parties to respond to questions about corporate culture, management approach, sustainability, employee policies, and potential deal structure. The Seattle-based company, advised by Goldman Sachs, has yet to decide if it will sell a controlling or minority stake—or if it will retain certain parts of its Chinese business, such as its supply chain.
Starbucks opened its $209 million Coffee Innovation Park in Kunshan, near Shanghai, in 2023. The 80,000-square-metre roasting facility has the capacity to supply all Starbucks stores across China.
More than 20 institutions, including private equity firms, responded to the initial call, and Starbucks is expected to narrow down its list of potential buyers in the next phase.
“The purpose was to let everyone tell their story freely and choose the best prospect to proceed,” one source said.
KKR & Co, Fountainvest Partners, and PAG are among the firms reportedly interested in acquiring a stake in Starbucks’ Chinese operations, according to Reuters.
The potential sale comes as Starbucks Denies grapples with declining market share in China, falling from 34% in 2019 to 14% in 2024, per Euromonitor data. The shift reflects increasing price competition from Chinese rivals like Luckin and Cotti, as well as e-commerce platforms offering deep discounts and speedy delivery services. Earlier this month, Starbucks announced its first-ever price drop in China, reducing prices of some iced drinks by an average of 5 yuan.
Source: Reuters
In Short : Starbucks Denies Sale of Its China Business