Starbucks Doubleshot® Energy+Coffee Stakes its Claim in the Ready-to-Drink Energy Coffee Subcategory

Lineup Expands with New Cinnamon Dulce Offering Inspired by Popular Latin Flavors

Starbucks Doubleshot® Energy+Coffee beverages have become top performers in the ready-to-drink (RTD) energy coffee subcategory since launching in June 2008. Currently, the line represents three of the segment’s five best-selling SKUs. [1]



Building upon this early success, the North American Coffee Partnership (NACP), a joint venture between Starbucks Coffee Company (NASDAQ: SBUX) and PepsiCo, Inc. (NYSE: PEP), today announced consumers will soon be able to enjoy the great-tasting invigoration of Starbucks Doubleshot® Energy+Coffee in a new flavor: Cinnamon Dulce.



Created by NACP culinary experts, food scientists and product designers who explored beverage trends and drew inspiration from popular Latin flavors, Cinnamon Dulce combines the subtly spicy taste of cinnamon and vanilla with a supercharged blend of Starbucks® coffee, B-vitamins, guarana and ginseng. Cinnamon Dulce will begin rolling into grocery and convenience channels alongside existing Coffee, Mocha and Vanilla flavors in early February 2009.



“The strong performance of Energy+Coffee over the past eight months is a testament to the versatility of the premium coffee experience,” said Greg Price, vice president, Starbucks Consumer Products Group. “Consumers value the fact that we’re able to deliver broad availability and convenience without sacrificing quality. We look forward to continued innovation and expansion in the RTD coffee category in the future.”



The NACP entered the RTD coffee market in 1994 with the launch of Starbucks bottled Frappuccino® beverages. Since that time, the joint venture has introduced a variety of Starbucks Doubleshot® products, and has become a leader in the RTD coffee category, which currently tops the $1.3 billion mark in the U.S. According to the 2008 Mintel Group U.S. Coffee Report, the NACP is the player to beat in FDMx [2] distribution channels, with Starbucks-branded products accounting for nearly $9 in every $10 spent on RTD coffee.



“Our 15-year relationship with Starbucks has produced some important innovations in the RTD coffee category and engaged a broad consumer base through strong brand loyalty and the strength of the Pepsi distribution system,” said Richard Burjaw, VP and GM, North American Coffee Partnership. “We’re proud of the solid performance

Starbucks Doubleshot Energy+Coffee has shown thus far, and anticipate continued positive momentum with the launch of Cinnamon Dulce.”



Starbucks Doubleshot® Energy+Coffee is available in a 15 fl. oz. can for $2.59 (SRP) at convenience, grocery, mass and drug stores nationwide. Convenient 12-pack cases are offered at some grocery and club store locations. In addition, Mocha and Vanilla flavors can be purchased at participating Starbucks stores. For more product information, visit www.starbuckscoffeeonthego.com.