Kraft and Starbucks Expand European Distribution

“Starbucks high-quality products and brand-building expertise combined with Kraft Foods business acumen in marketing, sales and distribution have put us in a prime position to create further growth in the packaged coffee category in Europe,” said Stephanie Wilkes, Vice President, Tassimo Global and Starbucks International Partnership, Kraft Foods.

05/03/09 Following the expansion of their relationship in Europe and the launch of packaged Starbucks coffee in Switzerland in September 2008, Starbucks Corporation and Kraft Foods announced they will launch packaged Starbucks coffee in select supermarkets in France and Germany. These countries will benefit from the companies’ ongoing relationship as they continue to work together to bring super-premium Starbucks coffee to home-brewing consumers in Europe.

“Europe has a strong, vibrant coffee culture and we’re proud to contribute to its richness by offering consumers super-premium Starbucks coffee for at-home brewing,” said Rich DePencier, vice president, Starbucks Global Consumer Products, International. “Our Consumer Products business is important to the overall success of the company, and we are committed to bringing the Starbucks Experience to consumers throughout Europe at our retail stores and in supermarkets.”

Fueled by Europe’s deeply rooted coffee tradition, the growing popularity of modern coffeehouses and at-home automated brewing systems has increased consumer demand for high-quality coffee in recent years.

“Starbucks high-quality products and brand-building expertise combined with Kraft Foods business acumen in marketing, sales and distribution have put us in a prime position to create further growth in the packaged coffee category in Europe,” said Stephanie Wilkes, Vice President, Tassimo Global and Starbucks International Partnership, Kraft Foods. “This launch builds upon our 10-year relationship, allowing us to deliver an exceptional and super-premium in-home coffee experience.”

Beginning in March 2009, French consumers will be able to purchase a selection of ground Starbucks coffee and Tassimo T-Discs at select Monoprix supermarkets, mainly in and around Paris, and in other key cities in France. Starbucks currently has 48 coffeehouses in France. By April 2009, German consumers will find ground and whole bean Starbucks coffee at select supermarkets, while Tassimo T-Discs will be sold nationwide. Starbucks currently has 140 coffeehouses in Germany.

Starbucks and Kraft Foods joined forces in 1998 with a marketing and distribution agreement under which Starbucks coffee was launched in U.S. supermarkets, driving growth of the specialty coffee category in this channel. The companies bring consumers Starbucks whole bean and ground coffees and Tassimo T-Discs in the U.S., Canada, the U.K., Ireland, Switzerland, France and Germany.