STARBUCKS COFFEE COMPANY AND JIM BEAM BRANDS CO.
EXPAND SPIRITS OFFERING WITH NEW STARBUCKS™ CREAM LIQUEUR
Starbucks™ Cream Liqueur Follows Successful Launch of Starbucks™ Coffee Liqueur
CHICAGO (Oct. 18, 2005) Introducing the ultimate cream liqueur for Starbucks enthusiasts. Just in time for the holiday season, Starbucks Coffee Company (Nasdaq: SBUX) and Jim Beam Brands Co., a unit of Fortune Brands (NYSE: FO), today announced the launch of Starbucks™ Cream Liqueur, an artful blend of delicious cream, premium spirits and a hint of Starbucks® coffee.
This announcement follows the successful February 2005 launch of Starbucks™ Coffee Liqueur, which Nielsen numbers confirm is the No. 1 selling new spirits product year-to-date through August in overall dollar sales. Nielsen also verified that Starbucks™ Coffee Liqueur ranks number three in the superpremium cordials category, with a current market share of 11 percent.
"We are very pleased with the success of our first entry into the spirits category," said Gerry Lopez, president, Starbucks Global Consumer Products. "Creating a cream liqueur is a natural extension for the brand and is consistent with our long-term strategy of surprising and delighting our customers by extending the Starbucks Experience outside of our retail stores."
With 22 million cordial consumers in the U.S. market, the cream liqueur category is nearly three times the size of the coffee liqueur category. According to Thomas J. Flocco, president and CEO of Jim Beam Brands Worldwide, the size of the market presents compelling potential for the new Starbucks™ Cream Liqueur, which bodes well for its performance.
"The current cream liqueur category is not only sizable, it also has a small number of major players, and we are well-positioned to leverage that from two vantage points," said Flocco. "First, the holiday season represents an important time of year for spirits, not to mention the ideal season for introducing a new cream liqueur to market. Second, building on the success of Starbucks™ Coffee Liqueur, we're confident about this product's ability to meet consumer preferences on taste."
According to industry experts, Starbucks™ Cream Liqueur will bring new life to the current cream liqueur category, currently dominated by Irish-inspired spirits.
"What a marvelous alternative to the ubiquitous fraternity of Irish cream liqueur," said Robert Plotkin, author, reporter and expert on the subject of bartending and beverage management. "This Starbucks entry is a lively, enthralling product that can only be described as luxurious and delectable."
Created with the Starbucks enthusiast in mind, Starbucks™ Cream Liqueur is an indulgence that can be enjoyed over ice, in coffee, or as the signature ingredient in a favorite cocktail. Like its coffee predecessor, Starbucks™ Cream Liqueur is available at licensed establishments such as restaurants, bars and retail outlets where premium distilled spirits are sold. It is not sold at Starbucks stores. A 750ml bottle of Starbucks™ Cream Liqueur will retail at an average price of $22.99, which varies by market. The product also is available in 1L and 50ml sizes.
Starbucks has a proven track record of creating successful products that can be enjoyed at home. In 1995, the company teamed with Dreyer's Grand Ice Cream to introduce Starbucks® Coffee Ice Cream. In 1996, Starbucks, through a joint venture with Pepsi-Cola Company, introduced bottled Starbucks Frappuccino® coffee drink and Starbucks DoubleShot® espresso drink. Most recently, Starbucks entered into a development and distribution agreement with Jim Beam Brands Co., to introduce Starbucks™ Coffee Liqueur in February of 2005.
Jim Beam Brands Co., a spirits-industry leader in flavor innovation and new-product development, has a history of developing strategic partnerships and acquisitions. Most recently, its parent company Fortune Brands, Inc. acquired more than 20 spirits and wine brands from Pernod Ricard following Pernod Ricard's acquisition of Allied Domecq elevating the level of its portfolio and expanding its international strength to make the company a new global leader in premium spirits and wine. Additionally, Jim Beam Brands Co. created the small batch bourbon category, led by fast-growing Knob Creek®, the world's No. 1 ultra-premium bourbon. It also revolutionized the cordial category with the introduction of the market-leading DeKuyper® Pucker® line of schnapps. Through innovative joint ventures, including its Future Brands distribution alliance with The Absolut Spirits Company, Jim Beam Brands Co. has established itself as a partner of choice for leading global brands.
Starbucks™ Cream Liqueur will be distributed by Future Brands LLC, which drives the second highest case volume in America. As with all Starbucks products, social responsibility is a key priority. Starbucks™ Cream Liqueur is a low-proof spirit intended for adults of legal purchase age who choose to drink responsibly and seek a premium-quality cocktail.
Starbucks Corporation is the leading retailer, roaster and brand of specialty coffee in the world, with more than 10,000 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® espresso 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--innovative superpremium Tazo® teas and exceptional compact discs from Starbucks Hear Music™ 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.
About Jim Beam Brands
Jim Beam Brands Co. is an operating company of Jim Beam Brands Worldwide, Inc., the fourth largest spirits company in the world. With 9 of the world's top-100 spirits in its portfolio, the company's brands hold global leadership positions in key categories, including Jim Beam® bourbon; Canadian Club® Canadian whisky; Courvoisier® cognac, Laphroaig® Scotch and Sauza® tequila, together with national and regional leaders such as DeKuyper®cordials in the United States, Whisky DYC in Spain and Teacher's® Scotch in the UK. Jim Beam Brands is also a top-five super-premium wine company in the U.S., with Clos du Bois®, the number two super-premium U.S. wine brand and the award-winning Geyser Peak®. Jim Beam Brands Worldwide, Inc. is part of Fortune Brands, Inc. (NYSE:FO), a $7 billion leading consumer brands company. For more information on Jim Beam Brands, and the Company's sales and distribution partners, please visit www.jimbeambrands.com.
Starbucks™ Cream Liqueur, 15% Alc./Vol. ©2005 Fielding & Jones, Ltd., Cincinnati.
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