real-time news and commentary for investors
Monday, Oct 21
Chinese media attacks Starbucks over prices
- Starbucks (SBUX) has become the latest multinational consumer giant to come under fire in China over its practices, with the official China Central Television (CCTV) accusing the company of charging more in the country than elsewhere.
- In a report, CCTV highlighted how a medium-size latte costs 27 yuan ($4.43) at Starbucks in Beijing, a third more than in Chicago. The company's Q2 profit margin was 32% in China-Asia Pacific, well above the 21% in the Americas and 2% percent in EMEA. CCTV's report adds to a critique by the official China Daily newspaper last week.
- The attack on Starbucks follows similar scrutinization of Apple and Volkswagen.