CHINA: Starbucks enters Chinese RTD market

By | 1 November 2007

Starbucks and PepsiCo have entered the Chinese RTD coffee market.

The companies said today (1 November) that the extension of their joint venture into the country has begun by selling bottled Frappuccino coffee drinks through retail stores, via PepsiCo's Chinese distribution network.

Starbucks chairman and founder Howard Schultz said today (1 November) that Starbucks and PepsiCo have plans to add at least 80 coffee shops each year in China and will sell bottled coffee in Beijing, Shanghai, and Hong Kong, before rolling out to other Chinese cities.

Starbucks currently sells RTD coffee beverages in South Korea, Japan and Taiwan through relationships with other companies. The coffee giant said that the expanded relationship with PepsiCo will not change its current relationships in those three markets.

The launch will be supported by an interactive advertising campaign on television screens inside Shanghai's subways and the Starbucks RTDs will retail between CNY18 and CNY22 (US$2.40 and $3.00).

In North America, Starbucks bottled Frappuccino coffee drinks, DoubleShot espresso drinks, and iced coffee drinks are available through a joint venture between Starbucks and PepsiCo. A new line of dark chocolate Starbucks bottled Frappuccino beverages were announced this autumn.

China currently has over 540 Starbucks stores.

Sectors: Soft drinks, Water

Companies: PepsiCo

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