Starbucks Bets On Alibaba Tie-Up To Revive China Sales
Starbucks Corp is partnering with Alibaba to deliver its coffee in Chinese cities starting this fall, betting the move will revive sales growth in its second-largest market that is witnessing aggressive local competition.
Starbucks flagged in June that it was pursuing such a tie-up after reporting a sudden slowdown in China sales growth, which it blamed partly on a crackdown on third-party delivery firms that had previously helped drive orders at its cafes.
"I consider this strategic partnership to be one that ... will just be rocket fuel for Starbucks' growth and continued expansion in China," Starbucks Chief Executive Kevin Johnson told reporters in Shanghai on Thursday.
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