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® bottled Frappuccino®
coffee drinks and later Starbucks DoubleShot® 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® 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®
coffee drinks to China and Mexico in 2008.
About Starbucks
Since 1971, Starbucks Corporation has been committed to ethically
sourcing and roasting the highest quality arabica coffee in the
world. Today, with stores around the globe, the company is the premier
roaster and retailer of specialty coffee in the world. In addition to
its Starbucks retail stores, the company produces a wide range of
branded consumer products globally, including ready-to-drink beverages,
packaged coffees and premium ice creams. The company’s brand portfolio
features Tazo® Tea, Seattle’s Best Coffee® and
Torrefazione Italia® Coffee, enabling Starbucks to appeal to
a broad consumer base. For more information, please visit us online at www.starbucks.com.
About Arla Foods
Arla Foods is one of the international dairy industry’s key players,
owned by 7,800 Danish and Swedish cooperative members who supply milk on
a daily basis. Arla Foods aims to create the best dairy for 250+ million
consumers in Northern Europe and to be a global leader in added value
butter – through its global quality brand Lurpak – and added value
cheese. The company has sales offices in 27 countries and production
facilities in 12. Its dairy products are exported to more than 100
countries. Arla Foods is the world’s biggest supplier of organic dairy
products. Arla Foods’ ambition is to minimize emissions and continually
improve its environmental efforts throughout the supply chain in order
to contribute to sustainable development. For more information please
visit us online at www.arla.com.
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