Suntory Ltd. said Tuesday it has agreed with Seattle-based global coffee chain Starbucks Corp. to sell cups of chilled coffee under the Starbucks brand this fall at retailers in Japan, beginning with convenience stores in the Tokyo area.
Under the tieup, Suntory will receive coffee beans from Starbucks and become the selling agency, consigning production and delivery to Takanashi Milk Products Co., which will distribute it through its own sales channels.
Suntory, a major domestic producer and distributor of alcoholic and nonalcoholic beverages, said it has decided to expand its business in the promising chilled coffee market on the strength of Starbucks' reputation.
Starbucks, which entered the Japanese market in 1996, said the business alliance will help expand its sales network. It now runs some 560 outlets in Japan.
Chilled coffee, kept cool throughout the manufacturing process and at stores to maintain freshness and flavor, is seeing brisk sales, according to Suntory.