Starbucks Corp. (SBUX) announced on Thursday that it is forming a joint venture with Alsea SA (ALSEA.MX) of Mexico to create Sirena SRL, to move into the Argentine market. It's part of Starbucks ongoing expansion in Latin America companies.
With Starbucks recently having less visitors in its U.S. stores for the first time in history - for a quarter - the company is stepping up its international strategy.
In the Latin America market, Starbucks already has a presence in Puerto Rico, Brazil, Peru and Chile. Overall they operate around 250 stores in the region at this time.
Starbucks sees a "long-term potential of 4,000 to 5,000 stores in the region," Hendrix said, adding that the timeframe will depend on market conditions. He also declined to give the amount of investment required for such an expansion.
"We have very aggressive expansion plans in Mexico, but also in other existing markets."
Hendrix added the demand in the region is so strong they can't keep up with it. Other areas they're looking to establish a foothold in are the Caribbean, Central America and Colombia.
The joint venture with Alsea SA is part of an ongoing partnership with the company by Starbucks, as they're partners with them in Mexico and Argentina, and minority partners in Brazil and Chile.
While there is a lot of competition in the new market, that's a good sign that there's a healthy market for Starbucks.
Hendrix also said Starbucks will continue to do what it does best: offer "great coffees in a great environment.
The first store in Argentina is scheduled to open in Buenos Aires sometime in the second half of 2008.
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