Starbucks eyes China innovation with Tingyi deal
Tingyi already partners with PepsiCo in China
Starbucks is to develop new RTD products for China after signing an agreement with PepsiCo partner Tingyi.
The US coffee-house chain said yesterday the tie-up will see China-based Tingyi manufacture and distribute Starbucks' full RTD portfolio across the country. Under the agreement, the two companies will also work on innovations “specifically for the China market,” Starbucks said.
Financial details of the tie-up were not disclosed.
“We are pleased to work with Tingyi, a leader in China’s RTD beverage category, to unlock the massive ready-to-drink market and grow local demand for Starbucks,” said John Culver, Starbucks's group president for Asia Pacific. “Our agreement enables us to develop new categories and occasions.”
According to Starbucks, China's RTD coffee and energy category is worth US$6bn, and is projected to grow by 20% over the next three years. China is Starbucks' fastest-growing market outside the US with more than 1,500 stores in around 90 cities.
Tingyi already partners in China with PepsiCo after signing a deal worth US$5bn deal in 2012.
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