Mexico’s Alsea pulls from Brazil market, for now

MEXICO CITY, Aug 19 (BestGrowthStock) – Mexican food chain
franchiser Alsea is pulling out of the Brazilian market to
rethink its strategy there but might possibly return to Latin
America’s top economy in 2011.

Alsea (ALSEA.MX: ) said on Thursday it is selling its 11.06
percent stake in Starbucks Brasil Comercio de Cafes LTDA, a
venture it established in 2006, to Seattle-based Starbucks Corp
(SBUX.O: ) for an undisclosed amount.

“Due to the interest in the Brazilian market, there is a
change in the strategy,” Enrique Gonzalez from Alsea’s investor
relations told Reuters, adding the company will look to hold
only majority stakes in any future business in Brazil.

The Brazilian market “has to be studied a bit more, and
maybe one of the drivers in the short, mid-term could be casual
dining formats,” he said.

Alsea had a tough time introducing fast-food pizza shops in
Brazil, where customers lean more toward the artisanal making
of the popular dish.

Gonzalez said Alsea could return to Brazil in 2011.

The company operates Domino’s Pizza, Starbucks Coffee,
Burger King, Chili’s Grill & Bar, California Pizza Kitchen and
P.F. Chang’s China Bistro outlets in Mexico and other South
American countries.

Alsea shares slipped 1.82 percent to 12.40 pesos Thursday
morning on the Mexican stock exchange.
(Reporting by Cyntia Barrera Diaz; Editing by Gerald E.
McCormick)

Mexico’s Alsea pulls from Brazil market, for now