DFI to assume full control of Starbucks operations across Asia

Dairy Farm International has agreed to expand its control over Starbucks operations throughout Asia, marking a significant shift in the conglomerate's regional portfolio strategy. The transaction represents a consolidation of the coffee chain's management structure under a single operator across multiple Asian markets.

As part of the arrangement, DFI will divest from several food and beverage brands that have formed part of its diversified holdings. The company is relinquishing its 50% stake in Maxim's Caterers, a move that reflects a broader repositioning of its F&B division. Additional brands affected by the restructuring include Genki Sushi and Shake Shack, which DFI will no longer operate.

The financial terms of the deal provide DFI with approximately US$340 million in cash compensation, offsetting the value of the divested assets. This cash injection is expected to strengthen the company's balance sheet as it focuses on its expanded Starbucks footprint across Asia.

The restructuring underscores shifting dynamics in Asia's food and beverage sector, where major operators are increasingly consolidating their portfolios around flagship brands. For DFI, the move represents a strategic bet on Starbucks' growth potential in the region, even as the company exits from other dining concepts.