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Sidley Austin and Baker & McKenzie have scored key advisory roles in Starbucks Corp’s recent tie-up with  Tingyi Holding Corp, a major drink maker operating in mainland China.

The agreement specifies that Starbucks will be providing coffee expertise, brand development and future product innovation, while Tingyi will manufacture and sell Starbucks read-to-drink (RTD) portfolio in China.

Led by Hong Kong-based partner Constance Choy, the Sidley Austin team advised Tingyi on the agreement. Meanwhile Starbucks was represented by Baker & McKenzie.

Starbucks’ teaming-up with a local partner is in line with the trend that global firms tend to latch on to a local Chinese peer to expand in the huge but tricky market in recent years.

U.S. drinks maker The Coca-Cola Co, French dairy firm Danone SA and British grocer Tesco PLC all have tied-up with local partners to boost China sales. PepsiCo Inc already works closely with Tingyi in China.

Analysts said the binding with Tingyi would lower the cost of Starbucks’ RTD coffee products and boost the company’s footprint in smaller cities, potentially giving it access to tap into an army of new consumers.

Starbucks said it has more than 1,500 stores in nearly 90 cities in China and over 25,000 employees. The majority of stores are company-operated, unlike elsewhere in Asia-Pacific where licensed stores dominate.

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