Starbucks and PepsiCo, Inc. last week announced they have entered into an agreement for the marketing, sale and distribution of Starbucks ready-to-drink coffee and energy beverages in Latin America.
The drinks include Starbucks Frappuccino chilled coffee drinks, Starbucks Double Shot Espresso and Cream, and Starbucks Refreshers.
In 2016, consumers in select markets in the Caribbean, Chile, Colombia, Costa Rica, Guatemala, Mexico, Panama, Peru, Puerto Rico and Uruguay will be able to purchase a portfolio of Starbucks ready-to-drink coffee beverages. The companies plan to expand to other markets in Latin America over time.
The ready-to-drink coffee and energy beverage category in Latin America is an estimated $4 billion business that is projected to grow by 22 percent over the next five years.
“Our expansion throughout Latin America in 2016 enables us to deliver high-quality Starbucks coffee in a convenient ready-to-drink format to our customers where they live, work and play,” Michael Conway, president of Global Channel Development at Starbucks, said. “PepsiCo’s sales expertise and distribution network makes them the ideal company to work with to unlock the Latin American ready-to-drink market and accelerate local demand for Starbucks.”
Under the agreement, Starbucks will provide coffee expertise, and PepsiCo will sell and distribute Starbucks ready-to-drink coffee and energy beverages leveraging its expansive network and experience across the region.
“Together, our highly talented and passionate teams will expand upon the vision set decades ago to create a new blueprint for continued growth in Latin America,” CEO of PepsiCo Latin America Laxman Narasimhan said.