27 July 2015 13:54:03 IST

Starbucks and PepsiCo join hands to tap in ready-to-drink market

They’re trying to capture market worth $4 billion in Latin America

Starbucks and PepsiCo has signed an agreement for the marketing, sale and distribution of Starbucks ready-to-drink coffee and energy beverages. These include Starbucks Frappuccino chilled coffee drinks, Starbucks Double Shot Espresso and Cream, and Starbucks Refreshers beverages, in Latin America.

22% growth estimate

The RTD coffee and energy beverage category in Latin America is an estimated $4 billion business and is projected to grow by 22 per cent over the next five years.

The agreement leverages the respective strengths of Starbucks and PepsiCo to unlock new market opportunities for each company. Starbucks will provide coffee expertise and PepsiCo will sell and distribute Starbucks RTD beverages leveraging its expansive network across the region.