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Master Kang cooperates with Starbucks to develop China's coffee and energy drink market

Published: 2024-11-05 Author: World Gafei
Last Updated: 2024/11/05, 0322.HK, the largest tea and instant noodle company in China, announced on Thursday that it has entered into an agreement with SBUX.O of the United States to produce and distribute Chinese mainland-branded ready-to-drink drinks in Starbucks, which is responsible for product development and brand management in China's $6 billion ready-to-drink coffee and energy drinks market.

Hong Kong (Reuters) March 19

0322.HK, China's largest tea and instant noodle company, announced on Thursday that it had signed a deal with SBUX.O of the US to produce and distribute Chinese mainland-branded ready-to-drink drinks, while Starbucks is in charge of product development and brand management, hoping to grab a slice of China's $6 billion ready-to-drink coffee and energy drinks market.

Master Kang's statement said that the cooperation with Starbucks will rely on the advantages of both sides to bring all Starbucks ready-to-drink products into the Chinese market and strengthen the innovative ability of localization to meet the needs of Chinese customers.

China's ready-to-drink coffee and energy drinks market is currently worth $6 billion and is expected to grow by a further 20 per cent over the next three years, according to a 2014 Euromonitor survey.

China is Starbucks' fastest-growing market outside the United States. Currently, Starbucks operates more than 1500 stores in nearly 90 cities in China and employs more than 25000 people. As for Taiwan-funded Master Kang, who has leading health technology equipment and channel resources in the Chinese mainland region, the company says that combined with Starbucks' coffee expertise and strong brand recognition, both sides will bring new market opportunities.

Starbucks and Kang Shifu plan to produce and market bottled Frappuccino drinks with existing and new flavors in China in 2016, and more new products will be launched after that.

Kang Shifu's shares rose 2.83 per cent to HK $18.88 in mid-morning trading, outperforming the 1 per cent rise in the broader Hang Seng index (.HSI). (end)

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