USA: Starbucks, The New York Times Form Strategic Relationship
Under this three-year agreement between two of the most well-known and respected brands in the world, 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 extensive network of company-owned locations in the United States. The New York Times's presence in Starbucks stores across the country will make a significant contribution to the newspaper's national expansion by improving availability for the 11 million customers who visit Starbucks stores weekly.
The agreement is effective October 1, 2000.
This alliance will enhance Starbucks customers' in-store experiences, increase availability of The New York Times and promote the Starbucks and New York Times brands. The partnership will heighten customer service and convenience in the following ways:
- Starbucks customers will have access to The New York Times in Starbucks growing base of stores throughout the United States;
- Starbucks customers and The New York Times readers will have seamless access to The New York Times circulation Web site (www.homedelivery.nytimes.com) and to the Starbucks Web site (www.starbucks.com) through a new link;
- Starbucks will be working with New York Times Digital, the Internet division of The New York Times Company, to explore further digital opportunities, and both companies will explore additional opportunities that build upon their strengths, including expanding the delivery of The New York Times to Starbucks stores outside of the United States.
"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 Times has always been an important source of information for people throughout the world," Schultz added. "The coffeehouse has always been at the center of conversation, community and culture and the marriage of our two companies is a great way to encourage that tradition to continue within our stores."
"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."
The New York Times Company (NYSE:NYT) is a diversified media company including newspapers, magazines, television and radio stations, and electronic information and publishing. The Company's core purpose is to enhance society by creating, collecting and distributing high-quality news, information and entertainment. The Company, which had 1999 revenues of $3.1 billion, publishes The New York Times, The Boston Globe and 22 other newspapers; publishes four magazines, including Golf Digest; operates eight network-affiliated television stations and owns two New York City radio stations. It also operates news, photo and graphics services as well as news and feature syndicates. A division of the Company, New York Times Digital, operates Internet properties such as NYTimes.com, Boston.com and NYToday.com. The Company holds interests in one newsprint mill, one supercalendered paper mill and the International Herald Tribune S.A.S.
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 premium 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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