Starbucks Corporation to Make First Entry Into The Ready-To-Drink Coffee Category in Europe with Arla Foods

Starbucks Corporation (Nasdaq: SBUX) announced today that it will enter the ready-to-drink (RTD) coffee category in Europe, an approximately US$550 million (EUR368 million) market. Starbucks also announced today that it has signed an agreement with Arla Foods for the manufacture, distribution and marketing of Starbucks-branded premium RTD coffee beverages in Europe. This new relationship complements Starbucks coffee expertise and experience in the ready-to-drink coffee category.

Extending the Starbucks brand into new distribution channels globally is part of Starbucks long-term plans to target international growth in key regions such as Europe. 'Starbucks Global Consumer Products business allows us to extend the Starbucks Experience to consumers beyond our retail stores while broadening our distribution channels globally,' said Rich DePencier, vice president, Starbucks Global Consumer Products International. 'The success we have had bringing ready-to-drink coffee products to consumers in North America and Asia demonstrates the global potential of the business and we are proud to join with Arla Foods to bring our premium RTD beverages to consumers in Europe.'

Arla Foods is a leading producer and distributor of quality milk products in Europe and has more than 100 years experience of providing consumers with inspirational products that create well-being. Arla is one of the largest dairy companies in the world, with particularly strong markets in Northern Europe. Arla Foods will manufacture, distribute and market Starbucks premium milk-based ready-to-drink coffee beverages that are made with the same high quality arabica coffee blends that are used in the handcrafted coffee beverages available at Starbucks retail stores around the world.

'Starbucks is a super brand around the world, based on strong values and high quality products and we are very pleased about the fact that Starbucks and Arla will work together in the European RTD cold coffee business. The joint effort to grow the RTD cold coffee category where Arla Foods will produce, market and sell the Starbucks-branded RTD coffee beverages is a great opportunity for Arla and a strong match to Arla's European strategy,' says Arla Foods' CEO Peder Tuborgh.

Starbucks has a proven track record of creating successful RTD coffee products globally. Through a joint venture with PepsiCo, in 1996 the Company introduced Starbucks(R) bottled Frappuccino(R) coffee drinks and later Starbucks DoubleShot(R) espresso drinks. 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. In 2005 Starbucks introduced Starbucks Discoveries(R) chilled cup coffees in Japan through an agreement with Suntory Foods, in 2007 entered Korea with the full line of Starbucks RTD products with Dong Suh Foods, and brought Frappuccino(R) coffee drinks to China and Mexico in 2008.

Logos, product and company names mentioned are the property of their respective owners.

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