Starbucks Contemplates Strategic Chinese Partnerships – CoffeeTalk

Starbucks is exploring strategic partnerships for its Chinese operations following a media report suggesting the company is considering selling a stake in the business to a local partner. The Seattle-based company is facing a decline in demand for its beverages in major markets such as the U.S. and China. Starbucks’ new CEO, Brian Niccol, has told investors last month that the competitive environment in China is extreme, and the company is working to find the best path to growth, which includes exploring strategic partnerships. Starbucks is fully committed to its business and partners, and to growing in China, without elaborating. In China, Starbucks faces weak consumer spending and stiff competition from local coffee chains like Luckin Coffee in a sluggish macroeconomic environment. Last year, Luckin topped its U.S. rival to the top spot on annual sales for the first time in the China market. Starbucks, which operates nearly 7,600 stores in China, has reported declining sales in the country for three consecutive quarters, with a 14% fall in the last quarter.

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