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SAN RAMON, Calif. -- Chevron Corp.'s 550 ExtraMile convenience stores will begin selling Starbucks' Seattle's Best coffee brand, as the world's largest coffee-shop operator expands beyond its namesake products, according to a Bloomberg report.
Chevron won't sell Seattle's Best in all of its stores; only in ExtraMile<, its higher-end gas station brand with locations in California, Oregon and Washington, Ian Noble, district sales manager for the retailer, told the news outlet.
"We would not be able to execute," Noble said.
A 20-ounce cup of coffee will cost $1.56 at Chevron's ExtraMile stores, compared with $1.86 at Seattle's Best retail stores. The same size coffee at Starbucks is $1.95, according to the report.
In addition to Chevron's ExtraMile, Kmart will begin selling Seattle's Best packaged coffee this coming month. All of Kmart's approximately 1,300 stores will have it by the end of this year. Starbucksis also putting the brand into other U.S. retailers, including some of Yum! Brands Inc.'s Taco Bell locations.
Subway and Burger King Holdings Inc. restaurants already sell Seattle's Best coffee.
"We're feeling confident that we can build this into a billion-dollar brand," Chris Bruzzo, chief marketing officer for Seattle's Best, told Bloomberg. Seattle's Best is going to places where it has "traditionally been hard to find great coffee," he noted.