Starbucks (SBUX) To Gain Stronger Foothold in China Via 'VIA'
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Starbucks (Nasdaq: SBUX) is expanding their presence in China even further with the introduction of VIA instant coffee starting on April 6th.
The move is sooner than expected, according to the Wall Street Journal, as CEO Howard Schultz commented last November that they had no plans to bring VIA to China, as consumers there needed more time to develop their taste for Coffee.
VIA will be available at 800 locations through China and Taiwan, as well as grocery chains and other specialty stores.
Currently, the $777 million instant coffee market in China is dominated by Nestle, which holds a 70% share.
Starbucks has plenty of plans for expansion in China moving forward. The company recently set up a coffee farm in Yunnan province, and they plan on expanding their stores from 450 to 1,450 by 2015.
Currently flat pre-market, SBUX hit a 52-week high of $34.79 yesterday.
The move is sooner than expected, according to the Wall Street Journal, as CEO Howard Schultz commented last November that they had no plans to bring VIA to China, as consumers there needed more time to develop their taste for Coffee.
VIA will be available at 800 locations through China and Taiwan, as well as grocery chains and other specialty stores.
Currently, the $777 million instant coffee market in China is dominated by Nestle, which holds a 70% share.
Starbucks has plenty of plans for expansion in China moving forward. The company recently set up a coffee farm in Yunnan province, and they plan on expanding their stores from 450 to 1,450 by 2015.
Currently flat pre-market, SBUX hit a 52-week high of $34.79 yesterday.
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