TH International LimitedTHCH, the exclusive operator of Tim Hortons coffee shops in China, forged a two-year partnership with Freshippo, Alibaba Group Holding Limited’sBABA omnichannel retail chain for groceries and fresh goods.
The partners will introduce co-branded coffee products exclusively through Freshippo’s online channels and physical stores.
The initial co-branded coffee products, Velvet Cocoa Coffee and Chestnut Latte will be available for sale in December.
Freshippo will sell these products online through its official app and offline through its over 300 brick-and-mortar stores in 27 cities across China.
Tims China and Freshippo will collaborate on research and development of the co-branded products, collaborating on product design, positioning, promotion, and pricing.
Jiayu Zhao, Chief Merchandising Officer (CMO) of Freshippo, said, “Our collaboration with Tims China will broaden the choices we offer consumers through providing more coffee products with new experiences and flavors.”
China’s coffee market reached 381 billion yuan ($53.5 billion) in 2021 and will likely increase 27.2% annually to 1 trillion yuan by 2025, SCMP reports citing iiMedia.
The coffee chain’s new partnership with Alibaba will allow it to leverage Freshippo’s vast reach. The supermarket chain, also known as Hema, currently has 3 million daily active users on its app.
Price Action: BABA shares traded lower by 3.08% at $78 in the premarket on the last check Monday.
