Starbucks gets new NZ partner

WELLINGTON: Starbucks Corp will have a new partner in New Zealand after the licence holder said it will not renew its two-decade-old deal in a region where an entrenched coffee culture has made it difficult for the world´s largest coffee chain to thrive.

Fast-food group Restaurant Brands New Zealand Ltd said in Monday it would let its licence deal expire in October, though Starbucks would keep its doors open and frappuccinos flowing under a new licensee, Tahua Capital, which had acquired the licence for a price of up to NZ$4.4 million ($2.9 million).

Restaurant Brands said in a statement the cafe chain was "becoming less relevant to the company´s overall direction" and that it intended to focus on its core business of quick-service restaurant brands such as KFC and Pizza Hut.

"Starbucks has never delivered its expectation here," said Brian Gaynor, head of Auckland-based Milford Asset Management.