Starbucks Expands Alsea Licensing Agreement to Parts of Europe

By Nick Kostov

Starbucks Corp. (SBUX) said Thursday it would fully license its operations in France, the Netherlands, Belgium and Luxemburg to Mexican restaurant operator Alsea SAB (ALSEA.MX) as part of the coffee retailer's strategy to improve its position in the European market.

Alsea will have the rights to operate and develop Starbucks stores in these markets, Starbucks said, adding that the company would introduce a new support structure in its head office in London to better serve an increasingly licensed strategy in the region.

The new structure aimed to "simplify our organization so that it can best service our increasingly licensed store market strategy while continuing to embed our mission and values in how we operate everyday" said Martin Brok, Starbuck's president for the region.

Starbucks opened its first Paris store in 2004. It subsequently expanded to the Netherlands, Belgium and Luxemburg between 2008 and 2016. Its partnership with Alsea began in 2002, when the two companies opened Mexico City's first Starbucks store.

Alsea operates more than 900 Starbucks stores in Argentina, Chile, Colombia, Mexico and Uruguay.

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(END) Dow Jones Newswires

October 18, 2018 09:36 ET (13:36 GMT)

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