Retailing, Franchising, and Consumerism Business Intelligence in China

Tingyi Will Make Ready-To-Drink Products For Starbucks In Mainland China

Starbucks and Chinese food and beverage maker Tingyi Holding Corp. announced that the two parties have signed a cooperation agreement under which Tingyi will manufacture and expand distribution of Starbucks ready-to-drink products in mainland China.

According to the agreement, Starbucks will provide coffee raw materials, brand promotion, and product innovation; Tingyi will be responsible for the manufacturing and sales of Starbucks ready-to-drink products in mainland China.

The two parties plan to produce and launch new flavors of Starbucks bottled Frappuccino drinks in 2016 and will launch more innovative products in the future. At present, Starbucks bottled Frappuccino has several flavors available in China, including original, caramel, mocha, and vanilla. Statistics from Starbucks show that Chinese consumers can buy Starbucks bottled coffee from over 6,000 locations, including select Starbucks retail stores, supermarkets and convenience stores.

China is reportedly Starbucks' fastest growing market outside America. So far, China's ready-to-drink coffee and energy drinks market scale is about USD6 billion and it is expected to increase by 20% over the next three years.

John Culver, Starbucks China and Asia Pacific president, said that they 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.

At present, Starbucks operates over 1,500 stores in nearly 90 Chinese cities.

Financial terms of the deal were not released.


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