Starbucks announced on Monday that it will sell a controlling stake in its China operations to Boyu Capital in a deal worth about $4 billion. The move marks one of the largest divestments of a China business by a global consumer brand in recent years.
Under the new arrangement, Starbucks and Boyu Capital will form a joint venture in which Boyu will hold up to 60 percent of the company’s China retail business. Starbucks will retain a 40 percent stake while continuing to own and license its brand and intellectual property to the new entity. The coffee giant said it expects the total value of its China retail segment to surpass $13 billion, including proceeds from the sale and the value of its remaining ownership in the joint venture.
Starbucks’ decision comes as its dominance in China has weakened due to intense competition from domestic coffee chains offering more affordable options. An ongoing economic slowdown has further shifted consumer spending habits. According to Euromonitor International, Starbucks’ market share in China — which accounts for more than 20 percent of its global stores — dropped to 14 percent in 2024, down from 34 percent in 2019.
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