Starbucks Corporation Announces Entry Into Ready-To-Drink Category in Japan and Taiwan
31.05.2005, 14:21
SEATTLE--(BUSINESS WIRE)--May 31, 2005-- -- Success of Starbucks Consumer Products Such As Bottled
Frappuccino Demonstrate Opportunity for Japan and Taiwan
Markets
Starbucks Corporation (Nasdaq:SBUX - News) announced today that it will enter the ready-to-drink coffee category in Japan and Taiwan. The combined ready-to-drink market in these countries represents more than U.S. $10 billion in total annual consumer sales. In March, agreements were signed with Starbucks local business partners and major distributors in both countries to manufacture and distribute a Starbucks-branded premium ready-to-drink coffee. Starbucks plans to enter the category in the chilled segment.
In Japan, Starbucks has entered into an agreement with Suntory Ltd., one of the leading Japanese producers and distributors of food and beverages, for the manufacture and distribution of coffee ready-to-drink products in Japan. Starbucks Coffee Japan, Ltd., which has operated Starbucks stores in Japan since 1996, will provide ongoing consulting support including local brand and marketing expertise for the Japanese market. This support complements Starbucks coffee expertise and experience in the ready-to-drink coffee category in the United States and Canada.
In Taiwan, Starbucks has entered into a distribution agreement with President Starbucks Coffee Taiwan Limited, the Company's joint venture partner in Taiwan, for marketing and distribution of the new product. The product for Taiwan will be manufactured by Uni-President Enterprises Corporation, one of the largest food and beverage companies in the country.
"Extending the Starbucks brand into new distribution channels is part of our long-term growth plans," said Gerry Lopez, president, Starbucks Global Consumer Products. "The success we have had bringing bottled Starbucks Frappuccino® coffee drink and Starbucks DoubleShot® espresso drink to consumers in channels outside of our retail stores in the United States and Canada demonstrates our potential worldwide. Our decision to take this first step to expand into the consumer products channel in Asia is a result of strong worldwide acceptance of the Starbucks brand as part of people's daily lives."
Starbucks has a proven track record of creating successful coffee-related products. Through a joint venture with Pepsi-Cola Company, in 1996 the Company introduced bottled Starbucks Frappuccino® coffee drink and later Starbucks DoubleShot® espresso drink. To date, these Starbucks coffee innovations remain the No. 1 products in their respective segments of the ready-to-drink coffee category in the United States.
About Starbucks Corporation
Starbucks Corporation is the leading retailer, roaster and brand of specialty coffee in the world, with more than 9,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim. The Company is committed to offering the highest quality coffee and the Starbucks Experience while conducting its business in ways that produce social, environmental and economic benefits for communities in which it does business. In addition to its retail operations, the Company produces and sells bottled Frappuccino® coffee drinks, Starbucks DoubleShot® coffee drink, and a line of superpremium ice creams through its joint venture partnerships.
The Company's brand portfolio provides a wide variety of consumer products. Tazo® Tea's line of innovative superpremium teas and Hear Music's(TM) exceptional compact discs enhance the Starbucks Experience through best-of-class products. The Seattle's Best Coffee® and Torrefazione Italia® Coffee brands enable Starbucks to appeal to a broader consumer base by offering an alternative variety of coffee flavor profiles.