Starbucks’ Open Door Policy

Starbucks Coffee International Inc. (Hong Kong), a wholly owned subsidiary of Starbucks Coffee Co. (Seattle), announced an agreement to increase its equity position in its Southern China operations.

Upon closing of the transaction, which is expected within the next 30 days, Starbucks will boost its ownership in Coffee Concepts (Southern China) Ltd. to 51 percent. It had previously held just 5 percent ownership.

Coffee Concepts (Southern China) Ltd. is a joint venture between Starbucks and Mei-Xin (International) Ltd., a subsidiary of Hong Kong-based Maxim's Caterers Limited. Starbucks is continuing its relationship with Maxim's for Hong Kong and Macau by extending the term of its joint venture for the operation of Starbucks stores in these markets.

As part of the transaction, Mei-Xin will also acquire a 30 percent interest in a joint venture to operate Starbucks Stores in Chengdu, a city in China’s Sichuan province. Starbucks Coffee International will retain the remaining 70 percent of this business. This 70/30 joint venture currently only has plans to open Starbucks stores in Chengdu, which the companies anticipate opening later this year.

“The decision to expand our relationship with Maxim's is a sign of our confidence and continued commitment to building a great business throughout China,” said Christine Day, president of Starbucks International’s Asia Pacific Group. “Maxim's has done an incredible job of building the brand in both Hong Kong and Southern China, and we look forward to continuing the relationship and leveraging the resources of both companies to bring the best coffee and coffee house experience to other cities throughout China.”

Starbucks opened its first store in Hong Kong in May 2000 and currently has 51 stores. There are currently 13 stores in Southern China, including six stores in Shenzhen, six stores in Guangzhou and one in Macau.