IANS, Mexico City, Updated: April 04, 2013 11:30 IST
Mexican restaurant operator Alsea said it acquired the remaining 18 percent of Cafe Sirena, a company created in 2002 to operate Starbucks coffee shops in Mexico, from US-based Starbucks Coffee International, giving it sole ownership of the Starbucks coffee business in Mexico.
"This operation is a vote of confidence by Starbucks, as it is giving us the mission of continuing to develop the brand in Mexico," Alsea CEO Fabian Gosselin said in a statement.
Under the terms of the March 27 deal, Starbucks agreed to provide Alsea with 100 percent ownership of the Mexico business for the duration of the exclusivity contract.
"The agreements include an option to expand Alsea's rights to develop Starbucks retail stores in Mexico for an additional 10 years, which would extend exclusivity until the year 2037. Alsea also agreed to a new expansion plan of 50 store openings per year for the next five years," the Mexican company said.
Cafe Sirena operates Starbucks coffee shops in 42 cities across Mexico.
"For more than 10 years, Alsea has successfully brought the Starbucks Experience to millions of customers in Mexico, helping us grow our presence to over 367 stores. We are proud of our relationship with Alsea and its ability to create a locally relevant experience for Starbucks customers. The Mexico business is key to our success in the Latin American region; we are excited to build on our foundation and accelerate our growth in the market," Starbucks Coffee US and Americas president Cliff Burrows said.
The deal will be financed with bank borrowing, Alsea said.
Alsea operated 1,421 restaurants in Mexico, Argentina, Chile and Colombia under the Domino's Pizza, Starbucks, Burger King, Chili's, California Pizza Kitchen, PF Chang's, Pei-Wei and Italianni's brands at the end of 2012.