Starbucks and United Airlines Enter Into Three-Year Supply and Cooperative Marketing Agreement

Expanded Relationship to Launch with In-Flight Video Onboard United and Ted Flights Featuring Behind the Scenes Footage of the Ray Charles Genius Loves Company Album - Starbucks(R) Coffee to Continue to be Exclusive Coffee for United Airlines and Ted Flights Worldwide

Feb 11, 2006 - 09:38
Starbucks Coffee Company (Nasdaq: SBUX) and United Airlines have extended their successful relationship with a new three-year supply and cooperative marketing agreement under which StarbucksĀ® coffee will continue to be the exclusive coffee for United Airlines and Ted flights worldwide.

The first collaboration under the new agreement will appear in September, when United presents a poignant in-flight entertainment program based on Ray Charles Genius Loves Company - a set of recordings jointly released by Starbucks, through its Hear Music brand, and Concord Records. The final recordings of Ray Charles' career, the performances feature Ray Charles singing with several of his favorite artists, including Natalie Cole, Elton John, Norah Jones, B.B. King, Gladys Knight, Diana Krall, Michael McDonald, Johnny Mathis, Van Morrison, Willie Nelson, Bonnie Raitt, and James Taylor.

United's in-flight video entertainment will include a half-hour program that will virtually put passengers in the recording studio for the making of the album - allowing viewers to experience interviews and performances from the recording sessions. Additionally, United's audio entertainment in September will feature the entire CD interspersed with interviews by artists appearing on the recording. The CD will be available at participating Starbucks stores nationwide during September.

"We are delighted to extend and expand our relationship with Starbucks, the premium coffee retailer in the world," said Glenn Tilton, Chairman, CEO and President of United. "Starbucks coffee and our excellent onboard service are two of the reasons why our customer satisfaction ratings are at historically high levels. It's time for this partnership to fly."

"Since 1996, we've been proud to serve Starbucks coffee to millions of customers on United flights around the world, and we look forward to continuing and broadening our relationship by taking it to another level," said Howard Schultz, chairman of Starbucks. "By sharing this touching video of Ray Charles and the artists that performed with him in his final recording sessions, we hope to pay tribute to Mr. Charles' legacy and provide a glimpse of the innovative programs that will give travelers yet another reason to fly United."

In the future, Starbucks and United will continue to develop co-marketing strategies and explore promotional opportunities that could include in-flight entertainment, new coffee lines onboard United flights, and promotion of Starbucks to United Mileage Plus members around the world.