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    Starbucks, PepsiCo To Distribute Ethos Water

    The joint agreement will significantly increase distribution of the beverages to retail stores in the U.S. and Canada.

    Starbucks Coffee Company and PepsiCo through their joint venture, the North American Coffee Partnership, announced the signing of a distribution agreement for Ethos water, which will significantly increase distribution of the products to retail stores in the U.S. and Canada.

    As part of this agreement, the North American Coffee Partnership will be responsible for the co-packing, distribution and marketing of Ethos products in the U.S. and Canada. PepsiCo will utilize its resources, customer insights and knowledge of the water category to increase the reach of the brand outside of Starbucks retail stores. Currently, Ethos water is available at more than 5,000 Starbucks sites and several smaller local retailers in the U.S. Plans are in place to expand distribution of Ethos water by late 2007 with additional bottle sizes and case-packs.

    Ethos water was founded in 2002 as a means to raise awareness and funds to bring clean water to children around the world, under the simple principle "water for water." Both companies -- Purchase, NY-based PepsiCo and Seattle, Wash.-based Starbucks -- have agreed to continue making a $0.05 donation for each bottle of Ethos water sold in all channels.

    "Building upon our very successful and long-term partnership with PepsiCo, we will ultimately increase Ethos Water's reach to more than 100,000 points of distribution, helping raise awareness of the brand and the severity of the world water crisis," said Gerry Lopez, president, Starbucks Global Consumer Products. "Ethos Water's unique business model validates that doing good drives business success."

    "We're impressed by Ethos Water's commitment to educating the public about the world water crisis and providing clean water for children and their communities which perfectly complements our company's values," said Tracey Doucette, Vice President and General Manager of the North American Coffee Partnership. "By leveraging the strengths of Starbucks and PepsiCo, we look forward to growing the Ethos brand and driving awareness for water issues."

    Since its inception more than 10 years ago, the North American Coffee Partnership has introduced bottled Starbucks Frappuccino coffee drinks in 1996 and later, Starbucks DoubleShot espresso drink in 2002. Additionally, in early 2006, the partnership introduced a new line of Starbucks Iced Coffee drinks in both regular and light, a light version of Starbucks DoubleShot espresso drink and the first coffee-free bottled Starbucks Frappuccino crème beverage, Strawberries and Creme.

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