Starbucks to Expand Premium Single-Serve Coffee Offerings
Announces Entry into Distribution Agreement with Courtesy Products to Provide Starbucks Premium Coffees in 500,000 Luxury & Premium Hotel Rooms across the U.S.; Further Premium Single Cup Offerings to Follow Success of Starbucks VIA® Ready Brew
SEATTLE & ST. LOUIS, February 15, 2011 – Starbucks (NASDAQ: SBUX) announced today that it is entering into an agreement with Courtesy Products, the nation’s leading provider of in-room coffee service to hotels, to provide Starbucks ground coffees for use in Courtesy’s patented CV1® in-room and on-demand brewed coffee system in up to 500,000 luxury and premium hotel rooms across the U.S.
Starbucks plans to begin offering its premium quality coffees for the CV1 this fall. In a recent study, 95% of Courtesy’s hotel customers surveyed said they prefer and would recommend the CV1 single-cup system over traditional in-room solutions. With the addition of the Starbucks brands, the CV1 will also deliver Starbucks quality and flavor and the Starbucks Experience in a single-serve format to guests in the luxury and premium segment of the hospitality industry.
“The single-serve coffee category in the U.S., and much of the world for that matter, is in its beginning stages of development,” said Jeff Hansberry, president, Starbucks Consumer Products Group. “At this very early stage, there are numerous contenders and no demonstrated, long-term winners related to either format or machines. Following our very successful introduction of Starbucks VIA® Ready Brew in the U.S. and into a growing number of international markets, Starbucks will continue to explore the many single-serve and on-the-go solutions and options available to us, and to participate in those where we can better and more conveniently serve our customers wherever they may be. Look for further announcements from Starbucks as we continue to expand our presence in the premium single-serve category.”
“Courtesy Products is continually looking for ways to innovate as well as provide our customers with amenities to make traveling more comfortable for their guests,” said Jim Theiss, CEO, Courtesy Products. “We know guests staying at luxury and premium hotels value a great cup of coffee. By pairing Starbucks coffees with our CV1 machine, we will be able to deliver a quick and delicious high-quality cup of Starbucks coffee right in their room or suite.”
Starbucks VIA® Ready Brew was Starbucks first entry into the newly-emerging and fast-growing premium single-cup segment, defined as single-serve portions (including sticks and pods/capsules) with a consumer price greater than $0.50 per serving. In the most recent 52 weeks, according to Nielsen Data, premium single-cup represented more than two thirds of the dollar growth in total U.S. coffee category, with Starbucks VIA® driving 40 percent of that growth. Starbucks VIA became a customer favorite quickly after its launch, has generated over $180 million in sales and is now available in the U.S., Canada, England, Ireland, Japan and the Philippines through a combined 50,000+ points of distribution globally.
About Starbucks
Since 1971, Starbucks Coffee Company 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. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at www.starbucks.com.
About Courtesy Products
For more than 30 years, Courtesy Products has been providing innovative in-room coffee service to hotels and motels nationwide. From instant coffee programs years ago, to today’s patented CV1® in-room brewed coffee system, Courtesy Products has been a leader in quality, service and innovation. Please visit us online at www.courtesyproducts.com.
