Starbucks Acquires Full Ownership of Starbucks Stores in Central, South & Western China
SEATTLE, June 01, 2011 - Starbucks Coffee Company (NASDAQ:SBUX) today announced the signing of a contractual agreement with Maxim's Caterers Ltd, its long time joint-venture partner in South China, including Hong Kong and Macau. Starbucks has assumed 100 percent equity of its business in the important China provinces of Guangdong, Hainan, Sichuan, Shaanxi and Hubei, and the municipality of Chongqing. As a result, Starbucks now has full control of more than half of the Starbucks retail stores in Mainland China as it looks to accelerate growth in the future.
Also as part of the agreement, Maxim's has acquired Starbucks remaining equity stake in the Hong Kong and Macau markets, assuming 100 percent equity of those markets.
"Full ownership of our stores in Central, South and Western China is part of our broader strategy to build China as our second home market outside of the U.S. and allows us to accelerate growth as we look to achieve our goal of having 1,500 stores across the country by 2015," said John Culver, president, Starbucks Coffee International. "In addition, this agreement demonstrates our commitment to our 11-year partnership with Maxim's. We are confident they will continue to maximize the growth of the Starbucks brand in the Hong Kong and Macau markets, delivering an unparalleled Starbucks Experience to our customers."
"We are very pleased with our long term relationship with Starbucks. Over the past decade, Starbucks has dedicated itself to cultivating coffee culture in Hong Kong and Macau by enthusing our neighborhoods with our passion for coffee," said Michael Wu, Chairman and Managing Director, Maxim's Caterers Ltd. "We will continue to build upon our strong business foundation to grow the Starbucks business in the Hong Kong and Macau markets and look forward to serving more customers and elevating the Starbucks Experience."
The partnership between Starbucks and Maxim's started more than 11 years ago in Hong Kong, with the opening of the first Starbucks store in Hong Kong's Exchange Square. Today, there are more than 110 Starbucks stores in Hong Kong and Macau, employing over 1,300 partners in both markets.
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting the highest-quality arabica coffee in the world. Today, with stores around the globe, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at www.starbucks.com.
About Hong Kong Maxim's Group
Founded in 1956, Hong Kong Maxim's Group has grown into the largest catering company in Hong Kong, operating 650 outlets, while serving more than 540,000 people every day. The Group offers a diversified service comprising Chinese, Asian and European restaurants, fast food outlets, cake shops, coffee shops, conveyor-belt sushi chain and institutional catering, while our mooncake has been the No. 1 Seller in Hong Kong since 1998.