Mexico's Alsea says Starbucks won't raise stake
MEXICO CITY, Jan 12 (Reuters) - Coffee giant Starbucks will not up its stake in Mexican fast-food operator Alsea, which currently runs the Starbucks franchise in Latin America, Alsea said on Monday.
Starbucks Corp (SBUX.O) has the option to increase its participation in its Mexican unit, run by Alsea (ALSEA.MX), from 18 percent to 50 percent until 2012, a statement to the Mexican stock exchange said.
"We are not exercising the option to increase our participation in Starbucks Coffee Mexico this year, in line with our strategy to grow internationally by reinforcing our existing partnerships," Starbucks executive Buck Hendrix said in the statement.
Alsea has opened more than 200 Starbucks coffee shops since the brand first entered Mexico just over five years ago and now stores are popping up around the country at one of the fastest rates in the world as sales sag in the United States.
Alsea, which also operates Domino's Pizza and Burger King restaurants, opened the first Starbucks coffee shop in Argentina in June 2008.
Starbucks said last month it does not expect to meet Wall Street estimates for the current quarter and would double its cost cutting as U.S. consumers buy fewer premium coffee drinks amid the biggest financial crisis since the Great Depression. (Reporting by Mica Rosenberg; Editing by Christian Wiessner)
