SHANGHAI (Reuters) - Food giant Nestle NESN.S on Thursday started selling Starbucks-branded SBUX.O coffee in mainland China, seeking to tap growth in a market where it says coffee consumption per capita remains low compared to global standards. Nestle last year paid $7.15 billion for exclusive rights to sell the U.S. chain’s coffees and teas globally, and began selling Starbucks-labelled products in Europe, Asia and Latin America in February. The world's largest food company will start selling 21 Starbucks-branded capsule and instant coffee products on Chinese e-commerce platforms like Alibaba's BABA.N Tmall and JD.com JD.O, as well as to offices and hotels in tier-1 cities, both companies said. “We believe China is the most exciting market in general but especially for coffee because... per capita cup consumption is quite low as compared to Asia,” said Rashid Aleem Qureshi, Nestle’s chief executive officer for the Greater China region. “Right now the overall soluble coffee in China is growing between 3-5% (a year) and we believe that by bringing this exciting new business opportunity we should be able to grow faster than that,” he said, referring to a category that includes capsule and instant coffee. Nestle’s move comes as the Swiss company experienced a slower first-half growth in China, its second-largest market, where other categories like mainstream baby foods have struggled compared to pricier options. China’s per capita coffee consumption is about 6 cups a year, compared to 400 in Japan and 300 in South Korea, Nestle said. The partnership with Starbucks would help Nestle add a premium coffee option to the range of products it already sells in China, such as Nescafe instant coffee range and Nespresso capsule coffees, Qureshi said. Starbucks China CEO Belinda Wong said the Nestle deal would open two new avenues to sell its products in China, where it has been investing heavily in its store network and delivery amid tougher competition from local startups.

BEIJING (Reuters) - Chinese coffee startup Luckin is aiming to open 2,500 new stores this year and overtake Starbucks Corp SBUX.O as the largest coffee chain by number of outlets in the world's second-biggest economy, it said on Thursday. The firm, which only officially launched its business at the start of last year, has expanded at breakneck speed, propelled by a focus on technology, delivery, and heavy discounting even at the cost of mounting losses. “What we want at the moment is scale and speed,” Luckin’s chief marketing officer, Yang Fei, told reporters on Thursday at a presentation in Beijing. “There’s no point talking about profit,” he said, adding that subsidies to lure in more users would be an important part of the firm’s strategy for the next few years. Luckin said it was targeting a total of more than 4,500 stores by the end of 2019, which would take it past Seattle-based Starbucks that has long dominated China’s coffee scene and has over 3,600 stores in the country. Luckin’s caffeine-fuelled expansion is in stark contrast to Starbucks, which opened its first China store in 1999 and has spent two decades reaching its current store count. The U.S. chain, which spearheaded the growth of a coffee culture in China, started to see competition rise from smaller peers over the last 18 months, though Luckin has stood out as the most aggressive competitor. But Luckin’s rise has not come cheaply. The firm recorded a loss of 800 million yuan ($116.34 million) last year, which its chief marketing officer said was in line with expectations as it pushed to expand. Luckin, backed by Singapore sovereign wealth fund GIC Pte Ltd and China International Capital Corp Ltd 3908.HK, opened more than 2,000 locations in the last year, gaining a valuation of $2.2 billion after raising $200 million in a funding round last month. The firm’s chief executive, Qian Zhiya, told Reuters last year that Luckin aimed to outnumber Starbucks in China. Reuters previously reported that Luckin was also in early-stage talks with investment banks about an overseas initial public offering. The firm, however, declined to answer questions about IPO plans on Thursday.

Howard Schultz is stepping down from his role as executive chairman of Starbucks, effective June 26, according to a memo sent to employees Monday. Schultz is seen as the architect of the modern Starbucks, having overseen its expansion from a single coffee shop that opened in Seattle's Pike Place Market in 1971. He joined Starbucks in 1982 as director of operations and marketing. Over time he grew it into the iconic brand it is today, with more than 28,000 locations globally. Schultz's latest leadership transition sparked speculation about his potential political plans: He has been a supporter of former President Barack Obama and Hillary Clinton during her bid for president. Some have already questioned whether he would pursue his own presidential run. "I'll be thinking about a range of options for myself, from philanthropy to public service, but I'm a long way from knowing what the future holds," Schultz said in the memo. Myron E. Ullman, former chairman and CEO of J.C. Penney, was named chair, while Mellody Hobson, president and director of Chicago-based investment management firm Ariel Investments, will be named vice chair. Schultz, who now will become its chairman emeritus, served as the company's chief executive from 1987 to 2000, stepping down to focus on the company's global strategy. He remained on as chairman of the board. At that time, there were only 350 cafes located outside of the U.S. From 2000 to 2008, Starbucks rapidly expanded from 3,500 to about 16,000 locations, but for Schultz, the quality of the brand and its coffee had deteriorated. He returned to the head position in 2008 to revitalize it. Again in 2017, Schultz stepped down, handing the keys over to current CEO Kevin Johnson. Once more, he picked up the mantle of executive chairman of the brand, this time focusing on Starbucks' Roastery and Reserve Bar expansion. "I set out to build a company that my father, a blue-collar worker and World War II veteran, never had a chance to work for. Together we've done that, and so much more, by balancing profitability and social conscience, compassion and rigor, and love and responsibility," he said. Schultz laid the groundwork for Starbucks' extensive employee benefits including, health care, stock ownership and free college tuition. As CEO, Schultz also lead global hiring initiatives for veterans and military spouses as well as refugees. He is currently writing a book about his social work and his efforts "to redefine the role and responsibility of a public company in an ever-changing society." "Howard Schultz has been a pioneer in setting and maintaining a culture of social responsibility — both environmentally and socially — while being able to maintain financial performance," Tim Hubbard, assistant professor of management at the University of Notre Dame's Mendoza College of Business, told CNBC via email. "He has served as an example to other executives who work towards socially responsible firms, and as an example to board members who frequently cite his behavior as models for executives." Under Schultz's leadership, the company's stock has grown 21,000 percent since its initial public offering in 1992. He currently owns 37.8 million shares of Starbucks, or a 3 percent stake, worth about $2.17 billion. Schultz's leaves at time when the company is struggling to revitalize same-store sales in the U.S., a trend that has contributed to a nearly 12 percent decline in its stock over the past year. Shares of the company were down nearly 1 percent in after hours trading on Monday. The coffee chain's image also took a hit recently after two black men were arrested in one of its cafes in Philadelphia after asking to use the restroom. The company responded swiftly, and closed last week to provide anti-bias training to 175,000 employees. Schultz has always been a big proponent of Starbucks as a "third place," a space for the community to gather. "We will learn from our mistakes and reaffirm our commitment to creating a safe and welcoming environment for every customer," Schultz said after the incident. —CNBC's Andrew Ross Sorkin contributed to this report.

Starbucks has tapped Rosalind Brewer, the former president and CEO of Sam's Club, to take on the role of chief operating officer and group president, effective Oct. 2. Brewer will lead the company's operating businesses across the U.S., Canada, and Latin America, as well as the global functions of supply chain, product innovation, and store development organizations. "Starbucks is a culture-first company focused on performance and Roz is a world class operator and executive who embodies the values of Starbucks," Kevin Johnson, Starbucks' president and CEO, said in a statement Wednesday. Johnson said that Brewer had been a "trusted strategic counselor" to him since her appointment to the company's board of directors in January. Brewer, who has more than 30 years of management experience and 10 years of experience leading multinational retailers, will continue to serve on the board of directors, the company said. "Ms. Brewer has a wealth of experience in retailing, consumers and [consumer packaged goods] markets," Neil Saunders, managing director of GlobalData, told CNBC via email. "She is also used to running large, complex organization with a global focus." Starbucks has hit some snags in recent quarters in its retail sales, blaming slowing mall traffic for weak sales at its Teavana stores, in particular. The company plans to shutter all 379 of these locations by spring 2018 to deal with the prolonged underperformace. "[Brewer] was instrumental in making changes at Sam's Club to bring the retailer more in line with trends around health and wellness," Saunders said. "She also did a lot in terms of e-commerce and multichannel, and this experience will be valuable for Starbucks."

When Starbucks opened its first location in the Middle East and North Africa region in 1999, the company chose to make its debut in Kuwait City with a café on the Souq Sharq waterfront in the heart of the city’s retail and entertainment district. Eighteen years later, Kuwait City is the site of the company’s first Starbucks Reserve™ coffee bar experience, located in the city’s soaring Crystal Tower. The skyscraper itself provided inspiration for the warm wooden interiors, with triangle shaped panels reminiscent of natural crystal stones. The store combines coffee theater with local design elements, and the craft of coffee takes center stage. Existing signature features were integrated into the design, including a coffered concrete ceiling and exposed brick surfaces. “We are extremely proud to introduce this special store that showcases our passion for coffee in this region,” said Graeme Gardiner, senior operations manager for Starbucks Kuwait. “With an immersive and sensory coffee bar, the new store defines a new opportunity bringing customers closer to their coffee – and Starbucks – more than ever before.” Featuring the company’s rare, small-lot Starbucks Reserve™ coffees roasted at its Starbucks Reserve™ Roastery in Seattle, the coffee bar gives baristas (who are Coffee Masters) a platform to engage in a dialogue with customers over a variety of brewing methods. These methods include manual Black Eagle espresso, as well as pour-over, Clover ™ Brewer, Siphon and Chemex. In addition to the classic Starbucks menu, the location will also feature specialty beverages created at the Roastery that showcase Starbucks Reserve™ coffees. Stores with Starbucks Reserve® coffee bars have opened in a number of U.S. cities, including New York, Los Angeles, Chicago, Atlanta, Baltimore, Washington, D.C. and Boston. The experience is expected to make up 20 percent of the global store portfolio by 2021.

Tamdeen Group, a Kuwaiti property developer, has signed a leasing agreement with retail franchise operator MH Alshaya Co to open 22 outlets in the new Al Kout Mall, part of Al Kout, the largest mixed-use waterfront destination in Kuwait. The agreement will see the opening a number of well-known restaurant brands, as well as a number not yet introduced to the Kuwaiti market, reported Arabian Business. Clothing stores and pharmacies are among the other outlets confirmed Al Kout Mall, which is due to be fully leased ahead of the project completion date by the end of 2017. Under the deal, the 22 household name brands that will join Al Kout Mall’s growing list of shops, cafes and restaurants, include Victoria’s Secret, American Eagle Outfitters, Bath & Body Works, Boots, Claire's, H&M, Justice, Mac, Next, P.F Chang's, Payless ShoeSource, Starbucks, The Body Shop, Top Shop, VaVaVoom, Vision Express, Mothercare and Foot Locker. John Hadden, senior vice president – Retail Property, MH Alshaya Co, said: “We are very impressed with the vision of Al Kout Mall and are confident that it will become a popular destination for residents and visitors to Kuwait. We are pleased to be working with Tamdeen Group once again to introduce some of our most popular brands to the mall and look forward to welcoming customers.” The mall is part of the overall Al Kout development in the Ahmadi governorate which will offer also hospitality, a marina, a fishing wharf, leisure and entertainment.