SEATTLE & HONG KONG--(BUSINESS WIRE)--Mar. 18, 2015--
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/
Source: Starbucks Coffee Company
Starbucks
Erin Shane, 206-318-7100
press@starbucks.com
or
Tingyi
Debbie
Ho
IR@tingyi.com
or
Lilyn-Lee
(IN PRC)
lilyn@masterkong.com.cn