Coinstar, Inc. and Seattle's Best Coffee Sign Exclusive Agreement to Roll Out Thousands of the New Rubi Kiosks in Grocery, Drug and Mass Channels
AGREEMENT IS FIRST TO BRING CAFE-QUALITY EXPERIENCE TO SELF-SERVE COFFEE KIOSKS NATIONWIDE
BELLEVUE, Wash. and SEATTLE, June 5, 2012 /PRNewswire/ -- Coinstar, Inc. (Nasdaq: CSTR) and Seattle's Best Coffee, part of Starbucks Corporation (Nasdaq: SBUX), today announced an exclusive agreement to roll out Coinstar's new Rubi™coffee kiosk in the grocery, drug and mass merchant retail channels featuring Seattle's Best Coffee® beverages. The Rubi kiosk marks Coinstar's latest innovation in automated retail. For Seattle's Best Coffee, the agreement adds another strategic channel of distribution for its premium coffee offering. The kiosks will begin rolling out this summer with approximately 500 kiosks serving Seattle's Best Coffee expected by the end of the year and thousands of machines in the next several years.
"We are delighted to introduce the Rubi kiosk, our third automated retail business. Just as our Redbox® movie rental and Coinstar® coin-counting kiosks reimagined retail, we believe our coffee kiosk reimagines the coffee experience for consumers," said Paul Davis, chief executive officer of Coinstar, Inc. "In addition, we are very pleased to work with Seattle's Best Coffee, one of the country's premier coffee brands. Together, we will deliver the kind of quality, convenience and value that we know coffee drinkers on-the-go will appreciate."
On the heels of a successful pilot, Coinstar and Seattle's Best Coffee have identified a coffee solution that fills an unmet consumer need within the $40 billion U.S. coffee market. The new Rubi kiosk provides a unique offering by grinding and brewing fresh whole beans in a single cup process on demand and around the clock. The Rubi kiosk serves brewed coffee and specialty drinks including mochas and vanilla lattes with price points starting at $1.00. It occupies approximately nine square feet and provides increased foot traffic and a turnkey solution for retailers, creating operational efficiencies.
"This relationship is a logical next step in our strategy to bring great coffee to new and unexpected locations where it's traditionally been hard to find great coffee," said Jim McDermet, senior vice president and general manager of Seattle's Best Coffee. "Our Seattle's Best Coffee fans will be delighted to find their favorite coffee now available around-the-clock at the places they visit regularly each day."
The additional kiosks will add to an already substantial Seattle's Best Coffee footprint, which today includes more than 50,000 points of distribution at restaurants, convenience stores, cruise ships, movie theatres, airlines, offices, universities and retail locations, as well as packaged coffee offerings in more than 20,000 places where groceries are sold.
Based on surveys conducted among consumers using the Rubi coffee kiosk while in test, 90 percent indicated they were satisfied or very satisfied with the experience, and 60 percent said they would recommend the Rubi coffee kiosk to a friend or colleague.
The Rubi coffee kiosks serving Seattle's Best Coffee will initially be installed in the northeast and west coast regions of the United States at grocery, drug, and mass merchant locations. As Coinstar expands geographically with its coffee kiosk, it will also pursue additional channels as part of an ongoing roll-out.
About Coinstar, Inc.
Coinstar, Inc. (Nasdaq: CSTR) is a leading provider of automated retail solutions offering convenient services that make life easier for consumers and drive incremental traffic and revenue for retailers. The company's core automated retail businesses include the well-known Redbox® self-service DVD and video game rental and Coinstar® self-service coin-counting brands. The company has approximately 36,800 DVD kiosks and 20,200 coin-counting kiosks in supermarkets, drug stores, mass merchants, financial institutions, convenience stores, and restaurants. For more information, visit www.coinstarinc.com.
About Seattle's Best Coffee
Seattle's Best Coffee LLC has been roasting premium coffee since 1970 and today roasts more than 20 million pounds of coffee every year and millions of cups of our coffee are served every day. A freshly-brewed cup of Seattle's Best Coffee is currently available in more than 50,000 locations including cafes, college campuses, restaurants, hotels, airlines, cruise ships, grocery stores and movie theatres. Seattle's Best Coffee is a featured brand within Starbucks Corporation (NASDAQ: SBUX). For more information, please visit Seattle's Best Coffee online at www.seattlesbest.com and become a member of the coffee community at www.facebook.com/SeattlesBestCoffee. For information about our retail franchise opportunity, please visit www.seattlesbest.com.
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including phrases conveying expectation or intent and other expressions identifying future performance. Forward-looking statements are not guarantees of future performance which may vary materially from performance expressed or implied in the forward-looking statements. Differences may result from actions taken by Coinstar, Inc., Seattle's Best Coffee or Starbucks Corporation, as well as those of third parties and from risks and uncertainties beyond our control. Such risks and uncertainties include, but are not limited to, changes in the number and timing of anticipated locations for the roll out, the early termination or renegotiation on materially adverse terms of the Coinstar, Seattle's Best Coffee and Starbucks agreement, our ability to attract new retailers and penetrate new markets and distribution channels and the termination, non-renewal or renegotiation on materially adverse terms of contract terms with our significant retailers. The foregoing risks and uncertainties are illustrative, but by no means exhaustive. For more information on factors that may affect future performance, please review "Risk Factors" described in our most recent Form 10-K and subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. These forward-looking statements reflect Coinstar, Inc.'s expectations as of the date of this release. Coinstar, Inc. undertakes no obligation to update the information provided herein.
SOURCE Coinstar, Inc.
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