Zoku, a Chinese startup that makes popsicles and other drinks, has closed a deal to sell its drinks business to Starbucks.
In the deal, Zoku will pay the coffee chain £6.5m over five years for the brands of drinks it produces.
Zoku had been selling drinks to Starbucks in a number of forms including bottled beverages, flavoured drinks, soft drinks and coffee.
“We have been sold to Starbucks by a major food brand in a major market,” said Zhang Xianfu, chairman of Zoku’s Chinese unit.
The company’s main business is its products, but the deal will also allow Zoku to make products for the likes of Starbucks, Tesco, and Dunkin Donuts.
The deal, announced on Friday, comes a day after Zoku raised a £1bn valuation.
Zoku’s founders say the deal is part of the Chinese firm’s broader strategy to become a leader in the Chinese market.
Ahead of the deal’s announcement, Zaku announced a new round of fundraising, raising $3.8bn in an initial public offering (IPO) earlier this year.
Shares in Zoku have jumped more than 30 per cent this year and were up 8 per cent in early trading on Friday.