Founding partner E-Mart will continue
operations and growth of Starbucks Coffee Korea
Starbucks Coffee Company (NASDAQ:SBUX) today announced it has
agreed to sell its 50% ownership share of Starbucks Coffee Korea
Co., Ltd. Joint venture partner E-Mart Inc. (Shinsegae Group)
("E-Mart ") will acquire an additional 17.5% interest in Starbucks
Coffee Korea Co., Ltd., giving E-Mart 67.5% ownership of Starbucks
operations in South Korea.
E-Mart has been Starbucks joint venture partner in South Korea
since 1999, when the brand opened its first store near Ewha Womans
University in Seoul. Since then, E-Mart has been a valuable
strategic business partner throughout the market and has
demonstrated their ability to elevate the Starbucks Experience
across South Korea, with more than 1,500 stores across 78 cities,
operated by more than 18,000 green apron partners (employees).
In addition, Starbucks Coffee Company has agreed to sell its
remaining ownership share of Starbucks Coffee Korea Co., Ltd. to an
affiliate of GIC Private Limited, (“GIC”), Singapore’s sovereign
wealth fund. This will give GIC a 32.5% ownership stake in
Starbucks Coffee Korea Co., Ltd.
“As Starbucks fifth largest market, South Korea continues to be
an important market for Starbucks,” said Michael Conway, group
president, International and Channel Development. “Part of our
success in South Korea - and in many of our International markets -
is due to our expertise and judgment in knowing when to rely on
local partners to continue to build the business. E-Mart and GIC
share Starbucks values and commitment to a positive experience for
partners and have been recognized for their commitment to community
stewardship. Starbucks is confident in E-Mart and GIC’s ability to
continue to elevate the Starbucks Experience for customers and
identify unique opportunities to reach more customers throughout
this important market.”
“Starbucks and E-Mart have had many conversations on how we can
continue to grow the Starbucks brand in the market, which led to
this decision,” said T.J. Hyung, Executive Vice President of
E-Mart. “This transaction is the result of the strong performance
and partnership we have achieved together over the past 20 years.
E-Mart will continue to enhance the customer experience and social
value that Starbucks has been creating, with a new partner GIC as
well as Starbucks."
“Starbucks Coffee Korea is a leading branded coffee chain with
consistent and strong growth prospects due to its high brand
awareness and continuous innovation,” said Choo Yong Cheen, GIC’s
chief investment officer of private equity. “As a long-term
investor, GIC is confident that Starbucks Coffee Korea will play an
important role in setting retail coffee trends and further driving
industry growth in South Korea. We are pleased to partner with
E-Mart, an experienced and capable operator in the consumer retail
space, to support the next chapter of this successful brand.”
As with all of Starbucks licensed markets, the company will
continue to maintain a strong relationship with Starbucks Coffee
Korea, leveraging Starbucks key global success drivers to enhance
the local Starbucks Experience for customers and partners in
Korea.
The completion of the business transition is expected over the
next 90 days. Because E-Mart will remain the operator of Starbucks
Coffee Korea, the rhythm of the business will remain uninterrupted
with no impact to partners or customers.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to
ethically sourcing and roasting high quality arabica coffee. Today,
with stores around the globe, the company is the premier roaster
and retailer of specialty coffee in the world. Through our
unwavering commitment to excellence and our guiding principles, we
bring the unique Starbucks Experience to life for every customer
through every cup. To share in the experience please visit us in
our stores, online at Starbucks.com and through the Starbucks
Newsroom.
About E-Mart
Founded in 1993, E-Mart is the largest retailer in Korea,
operating a nationwide network of over 160 hypermarkets, discount
stores, and other specialty stores. E-Mart was spun out from
Shinsegae, one of Korea’s oldest retailers, in 2011.
About GIC
GIC is a leading global investment firm established in 1981 to
secure Singapore’s financial future. As the manager of Singapore’s
foreign reserves, we take a long-term, disciplined approach to
investing, and are uniquely positioned across a wide range of asset
classes and active strategies globally. These include equities,
fixed income, real estate, private equity, venture capital, and
infrastructure. Our long-term approach, multi-asset capabilities,
and global connectivity enable us to be a partner of choice, by
adding meaningful value to our partnerships and investments through
the sharing of our networks and business expertise. Headquartered
in Singapore, we have a global talent force of over 1,800 people in
10 key financial cities and have investments in over 40
countries.
For more information, please visit gic.com.sg or follow us on
LinkedIn.
Forward-Looking Statements
Certain statements contained in this press release are
“forward-looking” statements within the meaning of the applicable
securities laws and regulations. Generally, these statements can be
identified by the use of words such as “believe,” “continue,”
“could,” “expect,” “may,” “predict,” “remain,” “should,” “will,”
“would,” and similar expressions intended to identify
forward-looking statements, although not all forward-looking
statements contain these identifying words. These statements
include statements relating to the expected closing of the business
transaction and the future growth of the South Korea market. These
forward-looking statements do not represent historical data, are
based on currently available operating, financial and competitive
information and are subject to a number of significant risks and
uncertainties. Actual future results and trends may differ
materially depending on a variety of factors, including the risks
detailed in the company filings with the Securities and Exchange
Commission, including the “Risk Factors” sections of Starbucks
Annual Report on Form 10-K for the fiscal year ended September 27,
2020. The company assumes no obligation to update any of these
forward-looking statements.
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