Starbucks In Deal To Expand In China's Ready-to-Drink Coffee & Energy Category

(RTTNews) - Coffee retailer Starbucks (SBUX) and Chinese food and beverage producer Tingyi Holding Corp on Wednesday said they entered into an agreement to manufacture and expand the distribution of Starbucks ready-to-drink (RTD) products throughout mainland China.

As per the deal, Starbucks will be responsible for providing coffee expertise, brand development and future product innovation, and Tingyi will manufacture and sell Starbucks ready-to-drink (RTD) portfolio in China.

Starbucks said the deal 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.

According to Starbucks, the RTD coffee and energy category is a $6 billion business, and is projected to grow by 20% over the next three years.