Starbucks Russia Business Changes Hands

Starbucks suspended operations in Russia in March and announced its exit in May. Its 130 stores remained idle for months. In late July, Russian rapper Timati said via social media that the catering company Pinskiy&Co had completed the acquisition of Starbucks' Russian assets. The new brand name and logo have not been determined. The first store is planned to open in August, with more than 200 stores expected by September.

The assets were acquired jointly by Pinskiy&Co founder Anton Pinsky and rapper Timati, who will manage the business together. Timati invited the public to help design the new name and logo. He said the goal is to surpass the globally known "mermaid" brand. Pinsky confirmed the store opening and expansion plans, adding that the coffee chain's new name and logo are still under discussion.

Starbucks' fate in Russia has finally been settled. From suspending operations in March this year to announcing its exit from the market in May, its 130 stores were once left at a standstill. At the end of July, Russian rapper Timati announced via social media that the local catering company Pinskiy&Co had successfully completed the acquisition of Starbucks' Russian assets. The new brand name and logo have not yet been determined, but the first store is planned to open in August, and the number of stores will exceed 200 by September. What details lie behind this acquisition? How will the new brand make a fresh start? This article walks you through the whole story.

On March 8 this year, Starbucks stated that it would suspend its business operations in Russia. Just over two months later, on May 24, the brand suddenly announced its exit from the Russian market. Since then, its 130 stores in Russia have remained idle, with no one taking them over for months.

It was not until July 9 that local Russian media reported that the well-known catering company Pinskiy&Co would acquire all of Starbucks' assets in Russia and planned to reopen under a new name, but at that time the deal had not yet been finalized.

On the evening of July 30 local time, Russian rapper Timati unexpectedly announced on Instagram that Pinskiy&Co had completed the acquisition of Starbucks' Russian assets, though the specific transaction amount was not disclosed.

It is understood that Starbucks' assets in Russia were acquired jointly by Pinskiy&Co founder Anton Pinsky and rapper Timati, and will be jointly managed by the two.

Timati said consumers should not expect a major rebranding, but he invited the Russian public to take part in the process of designing the new name and logo. He also stressed the need to strive to make this new brand surpass the globally famous "mermaid" brand from across the ocean.

Timati also revealed that the first store will open in August, and by September more than 200 stores will welcome customers in their best-decorated condition.

Anton Pinskiy subsequently posted on Instagram as well, confirming Timati's statement. He said the new name and logo of the coffee shops are still under heated discussion.

From the above information, it can be seen that this brand-new coffee chain brand has not yet determined its name or logo, yet it has already announced that its first store will meet the world in August, and that it will expand to more than 200 stores in September... A name cannot help but pop into my mind—abaaba (just kidding!)

Previously, due to the ongoing Russia-Ukraine conflict, former Starbucks CEO Kevin Johnson published an open letter condemning Russia's unprovoked, unjust and horrific attacks on Ukraine, and decided to suspend the franchising rights of its Russian business while donating related fees to humanitarian causes in the affected country.

More than a month after announcing the suspension of franchising rights, Starbucks suddenly announced its exit from the Russian market, and its 130 stores immediately entered a state of closure, with employees laid off after receiving six months' wages.

In early July, Starbucks' business in Russia was taken over by Anton Pinsky, founder of the well-known local catering company Pinskiy&Co. At the time, this restaurateur did not disclose the terms or details of the transaction to the public.

But Pinsky had previously mentioned that when Starbucks headquarters suspended its Russian business in March, he had already approached Starbucks' original owner in Russia and made an acquisition offer. "Judging by the fact that we are now closing the deal, we made the most correct offer." (Судя по тому, что сейчас закрываем сделку, то сделали самое правильное предложение)

Previously, some Russian market analysts predicted that the transaction amount for this acquisition of Starbucks' Russian business would be roughly between 1.6 billion and 3 billion rubles. However, at that time the US dollar exchange rate might continue to decline, so the possibility of completing the transaction within 700 million rubles could not be ruled out.

The acquisition of Starbucks' Russian business has been settled, which means Starbucks will, like McDonald's, start operating again after being renamed. On June 12, the Russian-style McDonald's was renamed "Vkusno i tochka (That's Just Tasty)" and opened.

The first store after the renaming will also make its debut in August. Next, under what name and with what logo will Russian-style Starbucks appear? It is truly something to look forward to!

Image source: Internet

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The above content is compiled by CoffeeHunters, a coffee news website.