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Article

4 Oct 2019

Author:
Grady McGregor, Fortune

Hong Kong: Starbucks urged to end relationship with license owner Maxim's Group after founder's daughter spoke against protest movement

“Starbucks in Hong Kong: Caught in the Crossfire”, 2 Oct 2019

… Like many Hong Kong businesses caught up in the clashes between protesters and police and their negative effects on the local economy, Starbucks' storefronts are collateral damage in the battle over control of the island territory. But they are also an example of the delicate balance international chains must walk as they weigh Hong Kong's push for democracy against the opportunities in China's growing market.

In conversations with Fortune, several protesters who spray-painted one Starbucks location expressed anger not towards Starbucks per se, but at Maxim’s Group, which owns Starbucks licenses in Hong Kong and Macau…

In recent weeks, Maxim’s Group has come under fire for its perceived pro-Beijing ties, and specifically because the daughter of Maxim’s founder, Annie Wu, spoke out against the protest movement to the United Nations Human Rights Council.

“For the last 6 months, Hong Kong has become a place for riots,” she said in an interview with CGTN about the meeting while reiterating her support for the Hong Kong police force in helping “maintain law and order” in the city.

Through vandalism, boycotts, and other means, protesters have also targeted dozens of other Maxim’s shops as well as countless stores with explicit ties to the mainland, such as China Mobile and Bank of China.

Protesters have further ramped up pressure in recent days as Hong Kong activist Joshua Wong demanded that Starbucks “consider whether Maxim's truly represents the social values of Starbucks and terminate the [relationship with] Maxim's immediately.” He included a link to a petition that has collected nearly 55,000 signatures at the time of publication.

Both Starbucks and Maxim’s Group declined to comment to Fortune on the recent protests, though Maxim’s recently released a statement distancing itself from the controversy. “Ms. Wu is not employed in any position or capacity at the company,” the statement read…

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