Tag: Asia coffee market

Starbucks Sells 60% Stake in China Business for $4 Billion

Posted on by Qahwa World

Dubai – Qahwa World

Starbucks has reached a major agreement to sell a 60 percent controlling stake in its China operations to Hong Kong-based private-equity firm Boyu Capital for $4 billion. The partnership marks one of the largest foreign coffee-sector transactions in Asia, positioning both companies to accelerate Starbucks’ expansion in the world’s biggest branded coffee market.

China remains Starbucks’ most strategic growth region outside the United States. The company currently operates around 8,000 stores nationwide and aims to scale that number to 20,000 in the coming years. Boyu’s local experience and financial backing are expected to support Starbucks’ next phase of growth, particularly in lower-tier Chinese cities where coffee culture is rapidly expanding.

Under the deal, Starbucks will keep its Shanghai headquarters and retain 40 percent ownership of the new joint venture. It will continue to license its brand and intellectual property while maintaining control over store design, training standards, and product development.

Brian Niccol, Chairman and CEO of Starbucks, said the collaboration would strengthen the company’s presence in China:

“Boyu’s deep understanding of Chinese consumers and regional markets will help us reach new communities while staying true to our values of exceptional partner experience and world-class customer service.”

Founded in 2011, Boyu Capital manages investments across Hong Kong, mainland China, and Singapore. Its portfolio exceeds 200 companies, including leading Chinese names such as Mixue Ice Cream and Alibaba Group—one of Starbucks’ delivery partners in China.

Alex Wong, Partner at Boyu Capital, described the partnership as “a shared belief in the strength of the Starbucks brand and a commitment to local innovation and customer connection.”

Starbucks’ decision follows months of speculation since late 2024 about a potential sale of its China division. The move comes as the company continues to recover from pandemic-era declines, reporting four consecutive quarters of growth in 2025. In its fiscal fourth quarter ending September 28, 2025, Starbucks recorded $831.6 million in China sales, a 6 percent increase year on year.

With this new alliance, Starbucks seeks to reinforce its market leadership amid mounting competition from domestic rivals such as Luckin Coffee and Cotti Coffee—companies that have gained ground with value-driven strategies and aggressive store rollouts.

Myanmar Targets 100,000 Acres of Coffee Cultivation in Ambitious Expansion Plan

Posted on by Qahwa World

Yangon – Qahwa World

Myanmar has unveiled an ambitious plan to expand coffee cultivation to 100,000 acres nationwide within the next two years, as part of efforts to boost agricultural exports and enhance rural incomes. The initiative, announced by the Department of Agriculture and reported by state media, includes support for farmers through the provision of seeds, seedlings, and technical assistance.

According to the department, Myanmar currently has about 63,226 acres under coffee cultivation. Two main varieties are being grown: Arabica, which dominates higher-altitude regions, and Robusta, cultivated in lowland areas. Expansion will target key regions including Nay Pyi Taw, Mandalay, Bago, Ayeyarwady, Mon, Tanintharyi, Sagaing, and Magway.

The short-term goal is part of a broader strategy first outlined in 2022, when authorities announced plans to increase total coffee acreage to 300,000 acres over five years. That earlier plan divided cultivation between 200,000 acres of Arabica across four highland zones and 100,000 acres of Robusta across three lowland zones. The latest 100,000-acre target is seen as a first step toward that larger ambition.

Evidence from the regions shows momentum on the ground. In Tanintharyi Region, the Agriculture Department expanded coffee cultivation by nearly 1,874 acres in fiscal year 2024–2025, bringing the total to over 3,000 acres. Officials there aim to add another 1,000 acres in 2025–2026 and have distributed around 170,000 seedlings to farmers alongside technical training.

Coffee has long been considered a promising export crop for Myanmar, though infrastructure and market access remain challenges. A report in 2023 estimated the country’s annual output at more than 9,000 tonnes, with Arabica accounting for nearly 7,000 tonnes and Robusta the remainder. Shan State and other upland regions remain the backbone of production.

Industry observers note that while the government’s targets are ambitious, coffee trees typically require three to five years to reach maturity, meaning today’s plantings will not immediately translate into export growth. Experts also highlight the need for investments in processing facilities, transport infrastructure, and international market linkages to ensure Myanmar’s coffee can compete globally.

Myanmar’s drive to rapidly scale up coffee cultivation underscores its determination to diversify exports and support rural communities. Yet the gap between announced acreage goals and independently verified progress remains significant, leaving questions about how quickly the sector can meet international demand.