Starbucks has declared that he is currently not considering the total sale of his business in China, denialing a Global Caixin report that had promoted the actions in the negotiation out of time, while the coffee giant faces competition of cheaper local rivals in its second largest market. «We have a world class team in China and a strong brand,» the company says in a statement. «We see a significant long -term potential in the market and we are evaluating the best strategies to capture future growth opportunities.» Caixin Global reported Monday that Starbucks was considering a complete sale of his business in China, citing familiar sources with the matter. The actions rose 1% in the negotiation prior to the opening in New York. The chain has been exceeded in price by more accessible national competitors, mainly the local company Luckin Coffee, which for the first time in 2023 exceeded Starbucks in annual sales in China. Meanwhile, consumers on the continent who used to go to foreign establishments with the highest price have reduced their spending. Sales in the same stores in China remained stable the last quarter after four consecutive quarters downward. To attract consumers on the continent again, Starbucks recently launched sugar -free options and reduced prices in more than a dozen tea -based drinks to bring them closer to Chinese tea chains. The company also hired its first growth director for China, indicating that it plans to follow a marketing strategy based on alliances with entertainment brands and icons of pop culture. Based in Seattle, Starbucks has contacted investors while considering options for its business in China, including a possible partial sale, according to Bloomberg News. The chain has consulted with advisors about ways of expanding its operations in China, including the possible incorporation of a local partner. The CEO Brian Niccol declared last year that Starbucks explored associations for its long-term growth, without going into detail. carrying out a broader transformation under the leadership of Niccol, who joined in September. Globally, Starbucks has reported five consecutive quarters of sales falls in the same stores. The company's shares have risen 1 % so far this year, compared to a 2 % increase in S&P 500 until Monday.
