Starbucks expects non-binding bids for China business within two weeks, sources say
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Starbucks expects non-binding bids for China business within two weeks, sources say
Starbucks has asked a short-listed group of potential bidders to submit non-binding bids for a stake in its China business. The U.S. coffee shop chain invited interested parties including private equity firms Carlyle, EQT, Hillhouse Investment and Primavera Capital to attend management presentations. A new partner in China could add impetus to a business whose market share has more than halved in the past five years. Starbucks has yet to finalise the structure of the sale or size of the stake, said the people, who declined to be identified as the information was not public. The cafe chain has held informal talks with a range of potential buyers since the second half of last year and aims to reach a deal by year-end, sources previously told Reuters.
HONG KONG (Reuters) -Starbucks has asked a short-listed group of potential bidders to submit non-binding bids for a stake in its China business within the next two weeks, two people with knowledge of the matter said.
The U.S. coffee shop chain invited interested parties including private equity firms Carlyle, EQT, Hillhouse Investment and Primavera Capital to attend management presentations where it would disclose financial and operational details of its China business, said one of the people as well as a third person with knowledge of the presentations.
Other potential bidders include Bain Capital, KKR & Co and technology major Tencent, said one of the first two sources and two other people familiar with the matter.
A new partner in China could add impetus to a business whose market share has more than halved in the past five years, as low-price local rivals grow apace while consumers become increasingly cost-conscious in a stuttering economy.
In May this year, Starbucks began the sale by inviting interested parties to answer questions about their businesses by late June, Reuters previously reported.
The Seattle-based company said at the time it was not considering a full sale of the business – which bidders expect will be valued at up to $10 billion, CNBC reported citing sources.
In July, it selected up to 10 interested parties and signed non-disclosure agreements ahead of granting potential access to financial and operational figures, the five people said.
It has yet to finalise the structure of the sale or size of the stake, said the people, who declined to be identified as the information was not public.
The cafe chain has held informal talks with a range of potential buyers since the second half of last year and aims to reach a deal by year-end, sources previously told Reuters.
CEO Brian Niccol on Starbuck’s quarterly earnings call last month said the cafe chain had received interest from more than 20 parties and was evaluating options.
“We remain committed to our China business and want to retain a meaningful stake… We will only enter a transaction if it makes sense for Starbucks,” said Niccol, CEO since August last year.
Starbucks on Friday declined to comment further.
Primavera, Carlyle, EQT, KKR and Bain declined to comment. Hillhouse and Tencent did not respond to requests for comment.
Starbucks is pursuing the sale after reporting strong overall revenue for the three months through June 29 under a turnaround plan Niccol implemented after several quarters of falling earnings.
Net revenue rose 3.8% to $9.46 billion, slightly exceeding the average analyst estimate, though same-store sales fell for a sixth consecutive quarter, by 2%.
In China, Starbucks faces sluggish economic growth and competition from local brands such as Luckin Coffee, which has gained market share with cheaper products and greater presence in smaller cities.
Starbucks’ market share in the world’s second-largest economy – home to more than a fifth of its cafes – was 14% last year versus 34% in 2019, showed data from market researcher Euromonitor International.
The chain has since taken the rare step of reducing prices for some non-coffee drinks in China and increased the pace of new and China-centric product innovation.
Comparable-store sales in China increased 2% in the quarter ended June 29 versus zero growth in the previous quarter.
Starbucks operated 7,828 stores in China as at June-end, its latest quarterly report showed. It did not disclose core earnings at its China business.
(Reporting by Kane Wu and Julie Zhu in Hong Kong; Additional reporting by Casey Hall in Shanghai; Editing by Christopher Cushing)
Waitrose apologises to shoppers as product recalled due to ‘health risk’
Waitrose & Partners Creamy Pesto Chicken Pasta has been recalled. The pasta poses a ‘possible health risk’ to some customers. It contains mustard which is not mentioned on the label. The affected pasta has a use by date of August 27, 2025. It comes in packs of 375g and is sold in Scottish and Welsh stores. Waitrose has issued a point-of-sale notice to its customers.
The supermarket chain has recalled its Waitrose & Partners Creamy Pesto Chicken Pasta from shelves in its Scottish and Welsh stores.
The pasta poses a “possible health risk” to some customers as it contains mustard which is not mentioned on the label.
The affected pasta has a use by date of August 27, 2025 and comes in packs of 375g.
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A spokesman for the Food Standards Agency (FSA) said: “Waitrose is recalling the above product from customers and has been advised to contact the relevant allergy support organisations, which will tell their members about the recall.
“The company has also issued a point-of-sale notice to its customers.
“These notices explain to customers why the product is being recalled and tell them what to do if they have bought the product.
“If you have bought the above product and have an allergy to mustard, do not eat it. Instead return it to your local Waitrose & Partners branch for a refund.
“You can contact Waitrose Customer Care on 0800 188 884, Option 4.”
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A Waitrose spokesman added: “We apologise that it has been necessary to recall this product and for the inconvenience caused.”
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What is a product recall?
If there is a problem with a food product that means it should not be sold, then it might be ‘withdrawn’ (taken off the shelves) or ‘recalled’ (when customers are asked to return the product).
The FSA issues Product Withdrawal Information Notices and Product Recall Information Notices to let consumers and local authorities know about problems associated with food.
In some cases, a ‘Food Alert for Action’ is issued.
This provides local authorities with details of specific actions to be taken on behalf of consumers.
StanChart shares rise after favourable ruling in U.S. litigation
Shares in the London-headquartered, Asian-focussed bank tumbled last week. A U.S. Republican lawmaker, Elise Stefanik, wrote to the Attorney General, Pam Bondi, asking for a probe into the bank. The bank said it was “pleased and unsurprised” by the decision.
LONDON, Aug 22 (Reuters) – Standard Chartered (STAN.L) , opens new tab shares rose 3% on Friday after what the bank said was a favourable ruling by the U.S. Department of Justice in a long running civil case.
Shares in the London-headquartered, Asian-focussed bank tumbled last week after a U.S. Republican lawmaker, Elise Stefanik, wrote to the Attorney General, Pam Bondi, asking for a probe to be launched into the bank, claiming it was involved in sanctions evasion.
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Stefanik said an unspecified case against Stan Chart was due to expire next week and urged action before that date.
Stan Chart said in a statement , opens new tab late on Thursday it was: “pleased and unsurprised by the Department of Justice’s filing in the legacy Brutus qui tam case, which continues to demonstrate what we’ve always known: the claims underlying this case are false.”
Reporting by Alun John and Samuel Indyk, editing by Dhara Ranasinghe
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Media Matched Advertising celebrates 25 years of driving New Mexico’s success
Media Matched Advertising is one of New Mexico’s top-volume media companies. The company has built lasting relationships with more than 50 clients across business, nonprofit, and government sectors. Media Matched covers the full spectrum of advertising, including creative production, media planning, and strategic partnerships. The agency is deeply committed to supporting the state’s economy by partnering with local vendors for printing, filming, promotional materials.
From concept to development, Media Matched covers the full spectrum of advertising, including creative production, media planning, specialty projects, and strategic partnerships. As a woman-owned New Mexico business, the agency is deeply committed to supporting the state’s economy by partnering with local vendors for printing, filming, promotional materials, and more.
Over the past quarter-century, Media Matched has been honored to serve distinguished clients such as Christus St. Vincent Regional Medical Center, Isleta Resort & Casino, Bernalillo County, the New Mexico Department of Agriculture, Mercedes-Benz, Porsche and Audi of Albuquerque, Chevrolet Cadillac of Santa Fe, and many others. These partnerships have spanned transformative campaigns, from public health and safety initiatives, to economic development, agriculture promotion, and high-profile brand marketing.
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“Our success is built on trust — trust from our clients, our media partners, and our community,” said Shelley Gregory, owner and founder of Media Matched Advertising. “For 25 years, I’ve been honored to help New Mexico businesses and organizations tell their stories, grow their audiences, and achieve their goals. I am grateful for every opportunity and for the partnerships that have made this journey possible.”
Media Matched Advertising looks to the future with the same passion and commitment that fueled its first 25 years — continuing to create impactful campaigns that support New Mexico’s businesses, communities, and economy.
Former furniture store transformed into outdoor shop in Keswick
Carlisle-based firm Cubby Construction has carried out a full internal refurbishment of the Kings Head Court unit in the Lake District. The building was previously occupied by John Young Furnishings, the furniture, interiors and antiques shop that had traded in the town centre for 134 years. Cubby Group chief executive Andrew Tinkler said the scheme was one of several recently delivered in Cumbria.
The Carlisle-based firm has carried out a full internal refurbishment of the Kings Head Court unit in the Lake District, which is now home to Manchester-based Ellis Brigham Ltd.
The building was previously occupied by John Young Furnishings, the furniture, interiors and antiques shop that had traded in the town centre for 134 years before closing last year ahead of retirement plans.
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Cubby Construction has been working to have the unit ready to open to the public earlier this month. (Image: Cubby Construction)
Cubby Group chief executive Andrew Tinkler said the scheme was one of several recently delivered in Cumbria.
“The Ellis Brigham refit is the latest in a number of local projects that have been completed recently; others include the completion of a new car park at Cumberland Infirmary and work at Pirelli to expand car parking and store areas,” he said.
“We have a number of exciting projects in the pipeline in Cumbria, as part of frameworks for local councils and utility networks, and for a range of growing local businesses.
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“The successful delivery of these projects is underpinned by our continual investment in equipment, processes, safety and skills – and we are currently recruiting for a number of positions in both Cubby Construction and across Cubby Group.”
The new Keswick store, which specialises in outdoor clothing and accessories, opened earlier this month, with store manager Jon posting on Facebook: “We’re really looking forward to welcoming you to our new store and can’t wait to share our enthusiasm for getting outdoors alongside our local knowledge and more.”
The Keswick store is open 9am to 6pm Tuesday to Saturday, 10.30am to 4.30pm on Sundays and Mondays.