Starbucks is looking for a partner to revitalize its China business. Chief Financial Officer Rachel Ruggeri will soon travel to China to talk to potential investors such as KKR $KKR (-2.35%) and the food supplier Meituan. This move is necessary as Starbucks is struggling with declining sales in its second largest market.
The talks are about selling part of the China business in order to gain fresh capital and new impetus. In addition to KKR, other investors, such as the Japanese PAG and FountainVest from Hong Kong, have also shown interest in acquiring a stake. Chinese companies, including the conglomerate China Resources Holdings, have also been brought into play.
The pressure on Starbucks is not only growing in China, but also in the USA. The new CEO Brian Niccol, who joined from Chipotle in the summer of 2024, has the task of putting the company on a growth path and increasing customer satisfaction. Negotiations on the stake to be sold are still ongoing. The next few weeks could be decisive for the future of Starbucks in China. 📈