Starbucks And New York Times Announce Alliance

Posted on August 3, 2000

Starbucks Coffee Company, a popular coffee brand and retailer, and The New York Times, have announced a three-year strategic alliance. Under this three-year agreement, The New York Times will use its national advertising resources to promote Starbucks products and retail locations as a destination for readers. Although other newspapers will continue to be offered to meet local demand, The New York Times will be the only national newspaper sold across Starbucks network of company-owned locations in the United States.

Currently, the USA Today and The Wall Street Journal are the national papers featured at Starbucks retail locations. Starbucks agreement with USA Today expires on September, 30. The Starbucks, New York Times agreement goes into effect October 1, 2000, which is when The Times will begin to appear in Starbucks stores. Starbucks claims to have 11 million customers weekly, so The New York Times's presence should have an impact on the newspaper's national expansion.

``This partnership brings together two great, well-respected brands, which we believe benefits both Starbucks customers and The New York Times readers,'' said Howard Schultz, Starbucks chairman and chief global strategist. ``In fact, the similarities between our customers and New York Times readers make this a value-enhancing proposition for everybody."

``The fit between The New York Times and Starbucks is a natural one,'' said Arthur Sulzberger, Jr., chairman of The New York Times Company and publisher of The New York Times newspaper. ``Together, we will reinforce our relationships with educated, affluent consumers and create additional opportunities for the growth and extension of our powerful brands.''

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