Starbucks Partners With Sequoia To Make 'Strategic Co-Investments' In China

Starbucks Corporation (NASDAQ: SBUX) on Sunday announced it had partnered with Sequoia Capital's China arm to make strategic co-investments in the country.

What Happened

The partnership will give Starbucks a footing in China's "growing technology landscape," and help forge more partnerships in the retail sector in the country, it said.

"The partnership enables Starbucks to tap into the most dynamic Chinese technology entrepreneurs in order to delight our customers with meaningful innovations created in China, for China," Starbucks China chairman and chief executive officer Belinda Wong said in a statement.

Starbucks noted that the collaboration with Sequoia would help it in identifying and propel "like-minded" companies.

"The partnership presents an exciting platform for our portfolio companies to test, commercialize and scale new innovations for China," Founding and Managing Partner of Sequoia Capital China, Neil Shen, added.

"Together with Starbucks, we look forward to bringing the digital transformation of consumer retail industry in China to the next level."

In March, the coffee chain company said it was investing $130 million to build a roastery in Kunshan, near Shanghai. According to Starbucks, it was the largest investment the company ever made in a production facility outside of the United States.

Starbucks Price Action

Starbucks shares closed 0.6% higher at $75.58 on Friday. The shares added 0.2% in the after-hours session at $75.75.