Starbucks-Pepsi ally in launching bottled coffee in China

Starbucks has come a long way in making itself a household name in this nation of tea drinkers creating a "coffee house" niche where none existed before.

SHANGHAI: Starbucks has come a long way in making itself a household name in this nation of tea drinkers creating a "coffee house" niche where none existed before.

With the launch today of its "frappucino" bottled drinks, the company, with partner PepiCo Inc, is reaching beyond its iconic stores in marketing the brand in Chinese stores, shops even Shanghai's subways.

To grab the attention of trendy young Shanhainese, Starbucks and PepsiCo are marketing the bottled coffee and mocha-flavoured drinks with an interactive serial movie, "Sunny Day," played on flat TV screens in Shanghai's subways.

"It's just the beginning of the growth and development of what we have planned for Starbucks in China," said Starbucks Coffee Co Chairman Howard Schultz.

"The No 1 market in terms of growth and development of Starbucks around the world is China," said Schultz, in Shanghai for the product's launch at the city's chic Xintiandi district.

With the Beijing Olympics less than a year away, big Western brand names are jostling for an extra edge in this booming market.
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Last week, cell phone maker Nokia Corp opened a flagship store along Nanjing East Rd, the traditional heart Chinese retailing. Automakers, electronics, and apparel makers -- all are rushing to leverage the China edge as the country readies for the big event.
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