LICENSING AGREEMENT BRINGS STARBUCKS COFFEE TO MARRIOTT INTERNATIONAL, INC. PROPERTIES
SEATTLE; March 21, 2000 - Starbucks Coffee Company (Nasdaq: SBUX) and Marriott International, Inc. (NYSE: MAR) announced they have signed a long-term licensing agreement to open coffeehouse locations in select Marriott Hotels, Resorts and Suites; Marriott Conference Centers; and Renaissance Hotels, Resorts and Suites properties.
“Starbucks and Marriott are a natural fit,” said Jim Alling, senior vice president, Business Alliances for Starbucks. “Both companies are intensely focused on offering unsurpassed customer service, best-of-class products and convenience.”
Under the long-term licensing agreement, fully-branded Starbucks licensed stores, kiosks or carts will open in Marriott International properties across the United States and Canada. The licensed units will offer handcrafted espresso beverages, drip coffee and a selection of freshly baked pastries. The agreement allows Starbucks to reach more consumers in a new venue and gives Marriott the ability to offer the leading brand of specialty coffee to their guests.
“By working with Starbucks, Marriott can offer a branded alternative to restaurant or in-room dining,” said Robin Uler, senior vice president, food and beverage and retail service, Marriott International. “We wanted to meet the needs of our customers who are looking for grab-and-go foods or beverages throughout the day.”
Starbucks recently opened its first Marriott location at the Orlando Marriott World Center in Florida. The location features Starbucks complete line of espresso and blended beverages, freshly brewed drip coffee, Tazo teas, pastries, FlavorLock bags of whole bean coffee, bottled Frappuccino coffee drink and a limited selection of Starbucks merchandise. Several other locations are scheduled to open this year including the Anaheim Marriott in California and Calgary Marriott in Alberta, Canada.
Marriott International, Inc. is a leading worldwide hospitality company with over 2,000 operating units in the United States and 55 other countries and territories. Marriott Lodging operates and franchises hotels under the Marriott, Ritz-Carlton, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites and Ramada International brand names; develops and operates vacation ownership (timeshare) resorts under the Marriott, Ritz-Carlton and Horizons brands; operates executive apartments and conference centers; and provides furnished corporate housing through its ExecuStay by Marriott division. Other Marriott businesses include senior living communities and services, wholesale food distribution, and procurement services. The company is headquartered in Washington, D.C., and has approximately 143,000 employees. In fiscal year 1999, Marriott International reported total sales of $8.7 billion.
Starbucks Coffee Company is the leading retailer, roaster and brand of specialty coffee in the world. In addition to its retail locations in North America, the United Kingdom, the Pacific Rim and the Middle East, Starbucks sells whole bean coffees through its specialty sales group, direct response business, supermarkets and online at Starbucks.com. Additionally, Starbucks produces and sells bottled Frappuccino® coffee drink and a line of superpremium ice creams through its joint venture partnerships and offers a line of innovative premium teas produced by its wholly owned subsidiary, Tazo Tea Company.
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Marriott International Note: This press release contains "forward-looking statements" within the meaning of federal securities law, including statements concerning the number of lodging properties expected to be added in future years, business strategies and their intended results, and similar statements concerning anticipated future events and expectations that are not historical facts. The forward-looking statements in this press release are subject to numerous risks and uncertainties, including the effects of economic conditions; supply and demand changes for hotel rooms, vacation ownership intervals, corporate housing and senior living accommodations; competitive conditions in the lodging, senior living and food service distribution industries; relationships with clients and property owners; the impact of government regulations; and the availability of capital to finance growth, which could cause actual results to differ materially from those expressed in or implied by the statements herein.