Starbucks Sets Sights on Russia, India

Posted 06 October 2006 @ 06:40 am EET     Print     Reprint     E-Mail     Comments

NEW YORK (AP) - US coffee shop chain Starbucks said it plans to opens stores in Brazil, Russia, India and Egypt during 2007, creating a presence in 40 countries outside the United States.

"Our international growth strategy balances accelerated development in line with the long-term retail potential of existing countries, while entering several promising new markets," said Martin Coles, president of Starbucks Coffee International.

"The company's entrance into the three large markets of Brazil, Russia and India as well as establishing our first African location will propel Starbucks International expansion towards meeting its long-term store potential of 20,000 locations, which is up from 15,000 previously targeted."

Through a joint-venture partnership with MH Alshaya, Starbucks is planning to enter the African continent with its first location in Cairo by the end of 2006, the company said.

"With consumerism on the rise and a growing middle class, Egypt presents an exciting retail opportunity for Starbucks. Africa is the birthplace of coffee and produces arguably the most exotic taste profile of any coffees in the world," the company said in a statement.

"Starbucks purchases approximately five percent of its high-quality arabica coffee from African countries of origin such as Ethiopia and Kenya." In Brazil, Starbucks is planning to open its first location in Sao Paulo by the end of this year.

"Brazil is the largest market in Latin America and is a country rich in coffee and espresso heritage," Starbucks said.

Starbucks said it has been planning to enter Russia for some time and that with joint-venture partner MH Alshaya, it plans to open its first store in Moscow in the fourth quarter of fiscal 2007, which ends October 1.

In India, Starbucks is negotiating the terms of a joint venture and will make an announcement once a definitive agreement has been signed. The initial focus will be on major cities such as Delhi and Mumbai.