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Latest headlines

PepsiCo, Starbucks partner to distribute coffee, energy drinks to Latin America

By Jeremy Gerrard
PepsiCo, Starbucks partner to distribute coffee, energy drinks to Latin America
July 28, 2015

Extending their relationship, Starbucks and PepsiCo, Inc. announced the two companies have partnered to market, sell and distribute Starbucks read-to-drink coffee and energy beverages in Latin America.

According to PepsiCo, the RTD coffee and energy beverage category in Latin America is an estimated $4 billion business that is expected to grow by 22 percent throughout the next five years. Starbucks products to be sold under the new agreement include Frappuccino, Double Shot Espresso and Cream, and Starbucks Refreshers.

The products will be available in select markets of the Caribbean, Chile, Colombia, Costa Rica, Guatemala, Mexico, Panama, Peru, Puerto Rico, and Uruguay beginning in 2016. The companies anticipate expanding to other Latin American markets later on.

“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,” said Michael Conway, president, Global Channel Development at Starbucks. “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.”

 “The North American Coffee Partnership is arguably one of the most successful joint ventures in the beverage industry, and with this new agreement, we bring more than 20 years of partnership success to a region where coffee is part of the culture,” said Laxman Narasimhan, CEO of PepsiCo Latin America. “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.” 

KEYWORDS: beverage industry food and beverage manufacturing

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Jeremy Gerrard was Food Engineering's Digital/Online Editor. He is a graduate of Auburn University with a degree in journalism. His previous work experience includes years spent as a reporter with the Daily Local News out of Chester County, PA. In addition to writing feature articles for Food Engineering, Jeremy covered the Dry Processing, Field Reports and People and Industry news sections.

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