News

Starbucks plans entry into new Latin American countries

May 15, 2014

Starbucks Coffee Company announced it is expanding its presence in Latin America, with new store plans for Colombia, Bolivia and Panama throughout the next year. According to a news release, the openings will be through licensed agreements with long-time business partners.

 “Starbucks' relationship with Latin America dates back to 1971 when we began buying coffee from the region. Today we source more than half of our coffee from Latin American countries,” said Cliff Burrows, group president, Starbucks Americas, U.S. and Teavana. “We see significant opportunity to grow our retail presence beyond the more than 740 stores and 10,000 partners we currently have in 12 countries in the region in a way that will continue to celebrate the region’s rich coffee heritage while also deepening our relationships with each of the communities we serve.”

Starbucks is on track to open its first café in Colombia in Bogota in mid-summer 2014 through a joint venture between two of its longest-term business partners in the Latin America region — Alsea and Grupo Nutresa. Throughout the next five years, the joint venture plans to expand aggressively in Bogota and to other major cities in Colombia. Alsea has partnered with Starbucks for more than 11 years in the region and currently operates more than 500 Starbucks stores in México, Argentina and Chile, employing a total of more than 8,000 employees, the release said.

Colcafe, a subsidiary of Grupo Nutresa, worked with Starbucks to create Starbucks VIA Ready Brew soluble coffee. Colcafe and Starbucks are expanding their manufacturing relationship to offer Colombian customers locally sourced and roasted espresso, drip and packaged Colombian coffee at Starbucks stores in Colombia.

Following the Colombia opening later in 2014, Delosi, Starbucks' long-time business partner in the Andean region, plans to open the brand’s first store in Bolivia in the commercial center of Santa Cruz through its subsidiary Delosur. Delosi currently operates 71 restaurants, employing more than 1,000 people in the Andean region. Starbucks and Delosi plan to add up to 10 stores in Bolivia within the next several years.

In early 2015, Corporación de Franquicias Americanas, Starbucks' long-time Central America business partner, will open Starbucks’ first store in Panama. Currently, CFA operates five Starbucks stores in El Salvador, four stores in Costa Rica and four stores in Guatemala. Over the long term, Starbucks and CFA plan to open more than 20 stores in Panama.