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starbucks said on Monday that it is forming a joint venture with Sugar Investment firm Boyu Capital to operate Starbucks stores China,
Under the agreement, Boyu will pay $4 billion to acquire a 60% stake in Starbucks’ retail operations in China. Starbucks will retain a 40% stake in the joint venture and will own and license the Starbucks brand.
Starbucks entered China about 30 years ago, and has been credited with the growing coffee culture in the country. China is Starbucks’ second-largest market outside the US with 8,000 locations.
But in recent years, seattle The coffee giant has had to contend with cheaper, fast-growing Chinese startups like Luckin Coffee in China.
As a result, Starbucks is looking for a partner to help it grow its business in China, especially in smaller cities. In July, the president of Starbucks and ceo Brian Nicol said the company is evaluating about 20 offers for a stake in the company.