Whitbread has announced its decision to expand its Costa Coffee brand in China.

The Bedfordshire-based hospitality group has agreed a joint venture with its Chinese partner Yueda Group to launch Costa in Shanghai and Eastern China.

The first Costa outlet is due to open in 2007, with the ultimate aim of opening more than 300 sites throughout China in the next few years.

Whitbread’s chief executive, Alan Parker, said: “China is a very attractive market making this a major deal for Costa.

“There is an established coffee culture and increasing interest in drinking coffee out of home so there is consumer demand for the product.”

Costa Coffee, acquired by Whitbread in 1995, has more than 450 outlets in the UK and 100 more in 14 other countries including India and Ireland. Details: www.whitbread.co.uk