Starbucks Coffee has completed its largest acquisition in history and will open 5000 stores in China in 2021

NASDAQ:SBUX Coffee Company (NASDAQ:SBUX) announced on July 27th that it has paid US $1.3 billion to fully acquire 50% of Starbucks East China Joint Venture owned by Uni-President, the largest acquisition in Starbucks history, which means that Starbucks will directly own 100% of the operation rights of more than 2800 stores in the Chinese mainland region in the future.

The original ownership structure of Starbucks' joint venture in eastern China is owned by Uni-President Enterprise Co., Ltd., Unification Supercommerce Co., Ltd. And Starbucks Coffee Co., Ltd. Among them, Uni-President and Uni-President hold 50% of the shares. The original Chinese mainland East China joint venture operates 1300 stores. Shanghai alone has 600 stores, making it the city with the largest number of stores in the world.

Starbucks Coffee Global CEO said that the unified operation in eastern China has strengthened its confidence in the Chinese mainland market, and Starbucks aims to open more than 5000 Chinese mainland stores by 2021.

At the same time of the deal, Starbucks, which entered the Taiwan market in 1997, sold the remaining 50% stake in Taiwan's Starbucks operating company to Uni-President and Uni-President. At this point, Uni-President owns 100% of Starbucks in Taiwan. has a full franchise, the deal is worth about $175 million.

It is reported that Starbucks has nearly 410 stores throughout Taiwan. It has been 20 years since the cooperation between the first store in Taiwan in 1997 and the joint expansion of the East China market in the mainland.

In addition, since 2011, Hong Kong Meixin Group has acquired a 100% stake in the Hong Kong and Macao markets in China, and the Starbucks market in Hong Kong, Macao and Taiwan has been fully franchised.

Starbucks coffee shares rose 📈 all the way after the news, up 1.95 per cent as of the post. Starbucks will detail the financial impact of the deal in its earnings call for the third quarter of fiscal 2017 at 2 p.m. (Western time) on July 27. The deal is still subject to regulatory approval and is expected to be completed in early 2018.

About Starbucks:

Starbucks, headquartered in Seattle, USA, was founded in 1971 by Howard Schultz, who was born in a Jewish family, and became Starbucks' marketing and retail manager in 1982. In 1986, he left Starbucks to open his first coffee shop. In 1987, he gathered a group of investors to buy Starbucks. In 1992, Starbucks listed in the United States. Starbucks has grown from a small chain with only 11 stores to nearly 30,000 stores in 75 countries today.

In April 2017, Howard Schultz, 64, resigned as CEO for the second time to focus on the Development Group's Reserve boutique cafe and promote Starbucks Reserve Coffee roasting and Taste experience (Starbucks Reserve Roastery and Tasting Room) around the world.

The name Starbucks comes from an extremely calm and charming first mate in the American writer Melville's novel Moby Dick. His hobby is drinking coffee. Melville has a high position in the history of American and world literature, but Melville does not have a large readership, mainly people with good education and high cultural taste. it is impossible for people without a certain cultural upbringing to read Moby Dick, let alone get to know the character Starbucks. From the brand name of Starbucks, the positioning of its target market can be clearly defined: not the ordinary public, but a group of petty bourgeois urban white-collar workers who pay attention to enjoyment, leisure, knowledge and respect for human standard.

Before 1987, Starbucks was just a chain store, and Schultz put his heart into giving it a brand and a new business model. "if you devote yourself to your work, or anything worth working for," he said. You will be able to achieve dreams that others don't think can come true. Therefore, life will become very meaningful. It is recommended to extend the reading of his personal account of "injecting the Heart".

Starbucks emphasizes innovation, individuation of products and services, and continuous pleasure and surprise to consumers. At the same time, fully respect China's long history of traditional culture, in store design, local food and beverage supply and other aspects, the perfect integration of local customs into the Starbucks experience.

Since entering the Chinese market, it has launched a variety of beverages, foods and commodities with Chinese characteristics that are deeply loved by Chinese consumers. Including Starbucks moon cakes, star ice dumplings, black sesame matcha star cappuccino, Chinese Starbucks tea, Fuman chestnut macchiato, Ruyi peach blossom latte, chili mocha and zodiac savings pots and accompanying cups specially designed for the Chinese Spring Festival and Mid-Autumn Festival.

At the same time, Starbucks is also more integrated into local elements in store design in China, such as Qianmen stores in Beijing, wide and narrow lanes in Chengdu, and three lanes and seven alleys in Fuzhou. with strong local characteristics to bring customers a unique Starbucks store experience.

Extended reading:

If it rains in Brazil, buy Starbucks stock? This is not a high-frequency trading software error, but led to a lovely topic like the rise of two stocks in Anne Hathaway's headlines. This is the title of the book, written by Peter Navarro, a PhD in economics from Harvard University and a contributing writer for authoritative media such as Harvard Business Review, Business week, New York Times, Washington Post, etc.

Why do you buy Starbucks shares when it rains in Brazil? Brazil rains-coffee beans harvest-coffee bean prices fall-Starbucks costs fall-Starbucks profits increase-share prices rise. The seemingly simple reasoning reflects the inherent logic of the stock market. The stock market is stimulated and affected by all kinds of information, such as cold, earthquake, military action, technological progress, monetary policy, foreign trade relations.

Various events affect the trend of the stock market and the trend of individual stocks in ways that you think or do not expect. The purpose of this book is to talk about the influence of the huge wave effect similar to the butterfly effect.