Starbucks Coffee Intl., a wholly owned subsidiary of Starbucks Coffee Co. (Seattle), has signed a joint venture agreement with Grain Red S.A., a local food and beverage company, to open stores throughout Chile. The new joint venture, Sur-Andino Cafe S.A., plans to open the first Starbucks in the capital city of Santiago during the second half of this year.
Chile is the first South American market for Starbucks following its entry into Latin America with store openings in Puerto Rico and Mexico last September.
“Starbucks is proud to have found an outstanding associate, Grain Red S.A., who not only has expertise in the local marketplace, but also shares our business principles and people values,” says Julio Gutierrez, president of Latin America, Starbucks Coffee Intl. “Our entry into Chile represents an important milestone for Starbucks expansion into Latin America.”
In addition to Chile, Mexico and Puerto Rico, Starbucks is proceeding with its strategic plans for the Latin American market and is exploring opportunities in Argentina, Brazil, Colombia and Venezuela, as well as Central American locations.
“Chile's excellent economic and social climate offers great opportunities for Starbucks,” says Domingo Castano, chairman, Grain Red S.A.
Grain Red S.A. specializes in food and beverage retail development. Its majority shareholder, Castano S.A., is a leading food manufacturer and distributor in Chile, specializing in high-quality bread, with 33 stores in Santiago. Its main brand — Castano — has been a staple in Chilean homes since 1933.
Starbucks Coffee is the leading retailer, roaster and brand of specialty coffee in the world, with more than 6500 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim.