(Yicai) June 24 -- Starbucks China has denied that it is on the sales block, stating that the US coffee chain’s business in the country is instead evaluating how best to capture future growth, The Paper reported, amid reports that Hillhouse Capital Group and other investors are considering buying it.

“Starbucks firmly believes in the enormous growth potential of the Chinese market,” Starbucks China said, without expressly confirming or denying the rumors. “We are evaluating the best way to seize future growth opportunities. We will continue to focus on revitalizing growth in our business in China and maintaining a positive development trend.”

Hillhouse recently took part in a reverse management roadshow for Starbucks China, and expressed an interest in acquiring the business, according to reports on social media yesterday, which cited company insiders. Other investment firms, including Carlyle Group and Trustar Capital, were also reportedly at the event.

Starbucks China is estimated to be worth between USD5 billion and USD6 billion and US investment bank Goldman Sachs is its exclusive financial advisor. If a deal went ahead, it is expected to extend into 2026.

Last November, there were reports that Starbucks was mulling selling a stake in its China operations. Sources said the company was exploring bringing in a local partner to extend its footprint in the country.

“We are wholeheartedly committed to our business in China, our partners and the long-term development of the Chinese market,” a spokesperson said at the time.

“As mentioned during the fourth-quarter earnings call, we are taking time to gain a deeper understanding of our business operations in China and the competitive market environment,” the spokesperson said. “We are working hard to identify the best growth pathways, including exploring strategic partnerships."

Starbucks reported notable growth across all key performance metrics for its China business in the fiscal second quarter compared with a year earlier, including revenue, same-store sales, and profit margins, according to its earnings report released in late April. Same-store sales in China jumped 5 percent to USD739.7 million.

Recent adjustments to the product lineup have started to pay off, with the business showing encouraging growth momentum, Chairman and Chief Executive Brian Niccol said on the firm’s earnings conference call.

Starbucks China recently cut the prices of a number of products. Dozens of items across three main categories -- Frappuccino, Iced Shaken Tea, and Tea Latte -- were marked down on June 10. The prices of grande cup size beverages, for example, were cut by an average of CNY5 (70 US cents) to as little as CNY23 (USD3.20).

Editor: Kim Taylor