Starbucks Values China Business at $13 Billion in Major Partnership Deal

SHANGHAI – Starbucks Coffee Company announced today a strategic partnership with Boyu Capital, a leading Chinese alternative asset management firm, to form a joint venture that will operate Starbucks' retail business in China.

Under the agreement, Boyu will hold up to 60% ownership of the venture, with Starbucks retaining 40%. Starbucks will remain the owner and licensor of the Starbucks brand and intellectual property in China. The transaction implies an enterprise value of approximately $4 billion for the joint venture (excluding cash and debt). Starbucks estimates the total value of its China retail business, including future royalty payments, will exceed $13 billion.

This partnership opens a new chapter for Starbucks after 26 years in China. The collaboration aims to combine Starbucks' global brand and coffee expertise with Boyu's deep understanding of Chinese consumers to enhance customer experience, accelerate digital innovation, and expand into new cities. The venture, headquartered in Shanghai, will manage the existing portfolio of over 8,000 stores, with a shared vision to eventually expand to 20,000 locations in China.

The move comes as Starbucks navigates a competitive landscape and shifting consumer habits in the key China market, where it has recently reported a return to positive comparable store sales growth.