China: Starbucks signs partnership with Tingyi Holding Corp
Starbucks has announced the signing of a partnership with Taiwanese food and beverage producer Tingyi Holding Corp to expand distribution of its products in China.
Under the terms of the agreement, Tingyi, the second largest seller of drinks products in China, will manufacture and sell the Starbucks RTD portfolio in China and help the American brand to expand its distribution in the beverage market. Meanwhile Starbucks is to be responsible for providing coffee expertise, brand development and future product innovation.
The agreement leverages the respective strengths of Starbucks and Tingyi to bring the entire Starbucks RTD portfolio to customers in China as well as the ability to innovate specifically for the China market, the companies said.
“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, group president, Starbucks Coffee China and Asia Pacific, Channel Development and Emerging Brands.
“The RTD market has a huge growth potential in China”, added James Wei, CEO of Tingyi Holding Corp. “The agreement with Starbucks will further expand Tingyi’s beverage product portfolio and enables us to provide consumers with more high-quality and convenient product options and experiences. As part of this cooperation, Tingyi will leverage its strength in production and distribution to increase the market share of Starbucks’ RTD products in the Chinese market”.
Source: Starbucks / Tingyi