Starbucks Corporation (NASDAQ:SBUX) is one of the best stocks for a dividend stock portfolio.
The company recently announced it will reduce the prices of several iced beverages in China by an average of 5 yuan (about $0.70) nationwide, starting June 10.
The US coffee company shared on its Weixin account that the move aims to make a wide range of drinks, including non-coffee options and Frappuccinos, more affordable as market competition grows and consumers become more cautious with their spending.
Although China is Starbucks Corporation (NASDAQ:SBUX)’s second-largest market after the US, the coffee industry there is fiercely competitive, and many consumers are cutting back due to economic uncertainty and job concerns. According to a recent update, some Starbucks beverages will now be available for as little as 23 yuan.
A source familiar with the matter said the price adjustment isn’t meant to match competitors, but rather to draw more afternoon traffic. While Starbucks Corporation (NASDAQ:SBUX) has previously stated it would avoid price wars, it has introduced smaller drink sizes and offered coupons that effectively bring down costs for consumers. The company is also exploring ways to revitalize its operations in China, including selling stakes in the business.
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