Starbucks is pulling out of Israel after dissolving its joint venture with the Delek Group.
The Shalom Coffee Company, the joint venture between the two, will close its six Starbucks stores in Tel Aviv, 'due to on-going operational challenges in the market'.
Mark McKeon, the president of Starbucks Coffee International for Europe, Middle East and Africa, said: "It was a very difficult decision. Following months of serious discussions and market reviews with the Delek Group, we came to this amicable and mutual decision. Our commitment in the market continues to be strong and long-term and we will return at an appropriate time.
"As these are still very early days of our growth, we are committed to making strategic decisions to help ensure our future success. We are very confident that the acceptance of the Starbucks brand is extremely strong, and we remain committed to our expansion plans and strategies in the region."
Starbucks also announced that it would repurchase 10 million shares, in addition to its current buy-back plan.
The company currently has approximately 390 million shares of common stock outstanding.
The Shalom Coffee Company, the joint venture between the two, will close its six Starbucks stores in Tel Aviv, 'due to on-going operational challenges in the market'.
Mark McKeon, the president of Starbucks Coffee International for Europe, Middle East and Africa, said: "It was a very difficult decision. Following months of serious discussions and market reviews with the Delek Group, we came to this amicable and mutual decision. Our commitment in the market continues to be strong and long-term and we will return at an appropriate time.
"As these are still very early days of our growth, we are committed to making strategic decisions to help ensure our future success. We are very confident that the acceptance of the Starbucks brand is extremely strong, and we remain committed to our expansion plans and strategies in the region."
Starbucks also announced that it would repurchase 10 million shares, in addition to its current buy-back plan.
The company currently has approximately 390 million shares of common stock outstanding.
