Starbucks Signs Agreement with Tingyi Holding Corp. to Expand in China’s $6 Billion Ready-to-Drink Coffee & Energy Category
March 18 2015 - 5:15PM
Business Wire
Starbucks (NASDAQ:SBUX) and Chinese leading food and beverage
producer Tingyi Holding Corp. (“Tingyi”) (0322.HK) announced today
they have entered into an agreement to manufacture and expand the
distribution of Starbucks ready-to-drink (RTD) products throughout
mainland China. According to the agreement, Starbucks will be
responsible for providing coffee expertise, brand development and
future product innovation, and Tingyi will manufacture and sell
Starbucks RTD portfolio in China. The RTD coffee and energy
category is a $6 billion business, and is projected to grow by 20%
over the next three years.1 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.
Starbucks® Bottled Frappuccino® Coffee
Drinks are available in 38 markets globally (Photo: Business
Wire)
China is Starbucks fastest growing market outside the U.S. with
more than 1,500 stores in nearly 90 cities, and more than 25,000
partners (employees). Tingyi is a leading Chinese food and beverage
producer which, after more than 20 years of development, boasts
world-leading production facilities and management expertise with a
broad spectrum of quality channel resources. Tingyi’s local
manufacturing, sales and distribution expertise combined with
Starbucks strong brand recognition and coffee expertise will unlock
new market opportunities.
“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. “Our agreement enables us to
develop new categories and occasions to delight our customers and
connect people outside of our stores to Starbucks where they live,
work and play.”
“The RTD market has a huge growth potential in China,” said
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.”
Today, customers in China can purchase Starbucks® Bottled
Frappuccino® beverages in nearly 6,000 locations including select
Starbucks retail stores, grocery and convenience stores throughout
mainland China. Through this agreement, Starbucks and Tingyi plan
to bring new and existing Starbucks® Bottled Frappuccino® in the
marketplace during 2016, which will be followed by innovation and
an increased number of locations and cities for consumers to
purchase Starbucks RTD products.
About Starbucks Coffee
Company
Since 1971, Starbucks Coffee Company has been committed to
ethically sourcing and roasting high-quality arabica coffee. Today,
with more than 21,000 stores around the globe, Starbucks is the
premier roaster and retailer of specialty coffee in the world.
Through our unwavering commitment to excellence and our guiding
principles, we bring the unique Starbucks Experience to life for
every customer through every cup. To share in the experience,
please visit our stores or online at Starbucks.com and
news.starbucks.com.
About Tingyi
HoldingCorp.
Tingyi HoldingCorp. is China's leading food and beverage company
that specializes in the production and distribution of instant
noodles, beverages and instant food in the PRC. Tingyi started its
instant noodle segment in 1992 under the brand of Master Kong, and
expanded into the bakery segment and beverages in 1996. The
philosophy of Tingyi is to provide consumers with safe, tasty
quality products with value for money. With sophisticated
production processes, outstanding operation, innovative products
and CSR campaigns, Tingyi is widely respected in China's consumer
industry. Continuous attention to operations at the community level
in the past 20 years has made "Master Kong" one of the most
recognized brands. The Company has also made big contributions to
rural, agricultural and farmers' development. For six consecutive
years from 2008 to 2013, Tingyi was named one of the 50 best listed
companies in Asia by Forbes for its solid financial track record
and excellent management and entrepreneurial skills. The company is
one of the constituents of Hong Kong Hang Seng Indexes (HSCI). For
more information, please visit www.masterkong.com.cn.
Forward Looking Statements
Certain statements contained herein are not based on historical
fact and are "forward-looking statements" within the meaning of the
applicable securities laws and regulations. Generally, these
statements can be identified by the use of words such as
"anticipate," "believe," "could," "estimate," "expect," "feel,"
"forecast," "intend," "may," "plan," "potential," "project,"
"should," "will," "would," and similar expressions intended to
identify forward-looking statements, although not all
forward-looking statements contain these identifying words. These
statements are based on information available to Starbucks as of
the date hereof, and Starbucks actual results or performance could
differ materially from those stated or implied, due to risks and
uncertainties associated with its business. These risks and
uncertainties include: fluctuations in U.S. and international
economies and currencies, our ability to preserve, grow and
leverage our brands, potential negative effects of material
breaches of our information technology systems if any were to
occur, costs associated with, and the successful execution of, the
company’s initiatives and plans, including bringing Starbucks RTD
portfolio to China, the acceptance of the company’s products by our
customers, including our RTD products in China, the impact of
competition, coffee, dairy and other raw material prices and
availability, the effect of legal proceedings, and other risks
detailed in the company filings with the Securities and Exchange
Commission, including the “Risk Factors” section of Starbucks
Annual Report on Form 10-K for the fiscal year ended
September 28, 2014. The company assumes no obligation to
update any of these forward-looking statements.
1Based on 2014 Euromonitor results.
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20150318006570/en/
StarbucksErin Shane,
206-318-7100press@starbucks.comorTingyiDebbie
HoIR@tingyi.comorLilyn-Lee (IN PRC)lilyn@masterkong.com.cn
Starbucks (NASDAQ:SBUX)
Historical Stock Chart
From Aug 2024 to Sep 2024
Starbucks (NASDAQ:SBUX)
Historical Stock Chart
From Sep 2023 to Sep 2024