SHANGHAI -- Starbucks has partnered with Chinese beverage maker Tingyi Holding Corp. to make and sell its ready-to-drink beverages on the Chinese mainland, the company said on Thursday.
The U.S. coffee giant has been selling bottled, coffee-based beverages at retail outlets such as grocery and convenience stores on the Chinese mainland, which the company says is its fastest growing market outside the United States, with more than 1,500 stores in nearly 90 cities.
The partnership with Tingyi, more commonly known as Master Kong in China, will allow Starbucks to leverage the Chinese beverage maker's local manufacturing, sales and distribution expertise to expand its retail distribution network and launch new products on the Chinese market, according to a statement from Starbucks.
Starbucks' China and Asia Pacific president John Culver said the partnership will unlock demand for Starbucks' offerings in China's massive ready-to-drink coffee market, which, along with energy beverage, is valued at 6 billion U.S. dollars and is expected to grow by 20 percent in the next three years.
Shares of Tingyi gained 1.96 percent in Hong Kong on Thursday to close at 18.72 Hong Kong dollars.
