Starbucks and Albertson's Sign Licensing Agreement — More Than One Hundred Starbucks Coffee Bars Scheduled for 2000

Business Wire, Nov 11, 1999

SEATTLE--(BUSINESS WIRE)--Nov. 11, 1999--

Starbucks Coffee Company (Nasdaq:SBUX) and Albertson's, Inc. (NYSE:ABS) announced today they have signed a licensing agreement to open more than one hundred Starbucks coffee bars in Albertson's supermarkets across the United States.

"We are excited to partner with the world's premiere specialty coffee company," said John Colgrove, Albertson's Vice President of Grocery Sales. "Starbucks and Albertson's are both widely recognized for their fine products and outstanding service. We look forward to offering Albertson's customers the best coffee in the best supermarkets." Starbucks locations are planned for selected Albertson's, Inc. owned supermarkets.

Customers will be able to enjoy handcrafted espresso beverages, freshly brewed drip coffee, bottled Frappuccino(R) coffee drink and Tazo teas. Pastries, ice cream, pre-measured FlavorLock(TM) bags of whole bean and ground coffee, and a limited selection of Starbucks merchandise will also be sold.

"Americans purchase two-thirds of their coffee (whole bean and ground) in grocery stores," said Paul Davis, Starbucks president, consumer products. "These coffee bars provide a great opportunity for us to introduce new customers to the Starbucks Experience, while conveniently serving existing customers in a new venue."

Albertson's, Inc. is one of the largest retail food-drug chains in the United States. Based in Boise, Idaho, the Company currently operates more than 2,450 retail stores in 38 states across the United States.

Starbucks Coffee Company is the leading retailer, roaster and brand of specialty coffee in the world. In addition to its retail locations in North America, the United Kingdom, the Pacific Rim, and the Middle East, Starbucks sells whole bean coffees through its specialty sales group, direct response business, supermarkets and online at starbucks.com. Additionally, Starbucks produces and sells bottled Frappuccino(R) coffee drink and a line of premium ice creams through its joint venture partnerships and offers a line of innovative premium teas produced by its wholly-owned subsidiary, Tazo Tea Company.