Starbucks to sell control of China business to Boyu

Starbucks has agreed to sell control of its Chinese operations to Boyu Capital for $4 billion. This significant divestment aims to boost growth in China's coffee market, which has become more competitive with local brands like Luckin and Cotti offering lower prices.

Starbucks CEO Brian Niccol stated, "We aim to bring the Starbucks experience to more customers, in more cities across China." After the deal, Boyu will hold 60% of a new joint venture, while Starbucks retains 40% and will continue to license its brand.

Starbucks' market share in China has decreased, from 34% in 2019 to 14% last year. Meanwhile, Boyu plans to enhance efficiency and expand Starbucks stores in lower-tier cities.

Comparable sales in China showed a 2% increase recently, suggesting progress amidst competition.