Yum China Holdings Inc. said April 29 that it formed a joint venture with Italy's premium coffee company Luigi Lavazza SpA to launch Lavazza concept coffee shops in China.

Yum China, which runs Yum! Brands Inc.'s KFC, Pizza Hut and Taco Bell restaurants in the Asian country, opened a flagship Lavazza store in Shanghai. The launch marks the Italian brand's first international foray.

The store offers a range of premium and single-origin coffees, along with an assortment of Italian snacks, like focaccia and cannolo alla crema. Yum China said that through the move, it will be able to offer a premium coffee shop experience to its customers.

Meanwhile, Lavazza expects to benefit from the partnership through Yum China's strong knowledge of the market and customer trends.

"China is an important market with huge untapped potential for coffee consumption. We have been searching for the right opportunities to establish Lavazza in China and Asia, and this partnership is an important first step," Lavazza Group CEO Antonio Baravalle said in a statement.