Starbuck’s Corp. (SBUX), the world’s coffee empire, has begun to shut down underperforming U.S. stores, but now they’re turning their attentions toward China, possibly jolting stock and exchange traded funds (ETFs) for the country.

By focusing more capital and attention toward the newer consumer, China, the effect upon Starbucks will be positive, with more innovation, new products and more resources. Stephanie Wong for Bloomberg reports that U.S. consumers have cut back on luxury goods such as gourmet coffee, forcing Starbucks biggest job cuts and closures in history; 600 U.S. outlets and 12,000 jobs ends their four-year period of expansion.

ETFs/ETNs that could take another shot of espresso:

• iPath Dow Jones AIG Coffee Total Return Sub-Index (JO)
• S&P China SPDR (GXC)
• iShares FTSE/Xinhua China 25 Index (FXI)
  

Yum Brands (YUM), head of Pizza Hut, Taco Bell, and KFC chains had a second quarter profit rise on higher sales in China. It appears the emerging middle class in China has not only grown, they have fallen victim to coffee addiction and junk food consumption, similar to the mainstream Americans.

Net income rose to $244 million, or 45 cents per share, from 07’s 39 cents, reports Joseph Galante for Bloomberg. PowerShares Dynamic Food And Beverage (PBJ) holds YUM at 5.42% of assets.

Tags | Coffee, ETNs, Food & Beverage, FXI, GXC, JO, PBJ, Retail & Consumer