Jim Beam Brands Co. and Starbucks Coffee Company Launch Starbucks(TM)

CHICAGO, Feb. 17 /PRNewswire-FirstCall/ -- Jim Beam Brands Co., a unit of Fortune Brands , and Starbucks Coffee Company today announced the national launch of Starbucks(TM) Coffee Liqueur. The mixable and versatile liqueur is the first of its kind to feature 100 percent Starbucks(R) coffee, which is then blended with the finest spirits.

(Photo: http://www.newscom.com/cgi-bin/prnh/20050217/CGTH014 )

This announcement follows a successful test market phase conducted in Denver and Austin, Texas, during which Starbucks(TM) Coffee Liqueur generated strong consumer demand at licensed establishments, such as restaurants, bars, and retail outlets where premium distilled spirits are sold. The product will not be sold in Starbucks retail stores.

"Extending our brand into new channels outside of Starbucks stores is part of our long-term growth strategy," said Jim Donald, Starbucks chief executive officer designate. "The test market phase of this new product rollout confirmed what we already knew -- Starbucks(R) coffee lovers want this product."

In fact, research from Starbucks indicates that nearly 50 percent of its loyal patrons already consume coffee liqueurs, and its customers are nine times more likely than the national average to drink a coffee liqueur. Liqueurs flavored with coffee, or often mixed with coffee, represent a substantial segment of the $4-5 billion U.S. cordial-and-liqueur market. A 750ml bottle of Starbucks(TM) Coffee Liqueur will retail at an average price of $22.99, which varies by market. The product also is available in 1L and 50ml sizes.

Starbucks entered into a development and distribution agreement with Jim Beam Brands Co., the spirits-industry leader in flavor innovation and new- product development, to develop, manufacture and market Starbucks(TM) Coffee Liqueur. A leading worldwide marketer and distributor of distilled spirits, Jim Beam Brands Co. is positioning this product beyond the traditional cordial profile. The mixable qualities of Starbucks(TM) Coffee Liqueur make it a key ingredient in mixed drinks and martinis, while creating a variety of new usage occasions.

"Based on the positive feedback from our accounts and consumers in the test markets, we are very excited about the prospects for Starbucks(TM) Coffee Liqueur," said Thomas J. Flocco, president and CEO of Jim Beam Brands Worldwide. "The product demonstrated the potential to gain market share while expanding the cordials and liqueurs category, and initial orders indicate we're well on our way to meeting our initial goals."

According to distributors and retailers in the test markets, Starbucks(TM) Coffee Liqueur is one of the most innovative products to hit the spirits market in some time.

"Starbucks(TM) Coffee Liqueur has been well received by our customers," said David Jabour, owner of Twin Liquors in Austin, Texas. "We knew this liqueur would perform well, based on Jim Beam Brands' history of developing innovative and great tasting new products, but consumers are buying Starbucks(TM) Coffee Liqueur because they trust that with Starbucks, they will get a premium, high-quality product."

Starbucks has a proven track record of creating successful coffee-related products. In 1995, the company teamed with Dreyer's Grand Ice Cream to introduce Starbucks(R) Coffee Ice Cream. In 1996, Starbucks, through a joint venture with Pepsi-Cola Company, introduced bottled Starbucks Frappuccino(R) coffee drink. To date, each of Starbucks(R) coffee innovations, including Starbucks DoubleShot(R) espresso drink, remain the No. 1 products in their respective categories.

Jim Beam Brands Co. has a history of developing and marketing premium products and forming winning partnerships. Reflecting its commitment to innovation, the Company created the small batch bourbon category, led by fast- growing Knob Creek(R), the world's No. 1 ultra-premium bourbon; revolutionized the cordial category with the introduction of the fast-growing DeKuyper(R) Pucker(R) line of schnapps; and successfully extended the Jim Beam brand with the introduction of fast-growing super-premium Jim Beam(R) Black. Through innovative joint ventures, including its Future Brands distribution alliance with The Absolut Spirits Company, Jim Beam Brands Co. has established itself as a partner of choice for leading global brands.

Starbucks(TM) Coffee Liqueur will be distributed by Future Brands LLC, which drives the second highest case volume in America. Starbucks(TM) Coffee Liqueur is a low-proof spirit intended for adults of legal purchase age who choose to drink responsibly and are seeking a premium-quality cocktail.

Underscoring its commitment to social responsibility, Starbucks Coffee Company is supporting the Ask, Listen, Learn: Kids and Alcohol Don't Mix program for middle school aged children and their parents. The program is unique in that it approaches the issue from two sides -- providing both parents and kids with information and strategies to help facilitate conversation about the dangers of underage drinking, in a format and language designed especially for them.

Ask, Listen, Learn: Kids and Alcohol Don't Mix is a highly creative, multimedia program developed by The Century Council in partnership with Nickelodeon and with scientific input from the National Middle School Association, the American School Counselor Association, the U.S. Department of Education, the U.S. Substance Abuse and Mental Health Services Administration, the National Association of Secondary School Principals and the National Latino Children's Institute. Starbucks support will allow The Century Council, which is funded by America's distillers including Jim Beam Brands Co., to distribute Ask, Listen, Learn materials directly to middle school administrators throughout the nation.

For more information on Starbucks(TM) Coffee Liqueur, please visit http://www.starbucks.com/coffeeliqueur .

About Starbucks

Starbucks Corporation is the leading retailer, roaster and brand of specialty coffee in the world, with approximately 9,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim. The Company is committed to offering the highest quality coffee and the Starbucks Experience while conducting its business in ways that produce social, environmental and economic benefits for communities in which it does business. In addition to its retail operations, the Company produces and sells bottled Frappuccino(R) coffee drinks, Starbucks DoubleShot espresso(R) drink, and a line of superpremium ice creams through its joint venture partnerships. The Company's brand portfolio provides a wide variety of consumer products. Tazo Tea's line of innovative premium teas and Starbucks Hear Music's exceptional compact discs enhance the Starbucks Experience through best-of-class products. The Seattle's Best Coffee(R) and Torrefazione Italia(R) Coffee brands enable Starbucks to appeal to a broader consumer base by offering an alternative variety of coffee flavor profiles.

About Fortune Brands and Jim Beam Brands Co. Fortune Brands, Inc. is a $7 billion leading consumer brands company. It has premier brands and leading market positions in home and hardware products, spirits, golf equipment and office products. The company's Jim Beam Brands Worldwide, Inc. unit is the largest U.S.-based spirits & wine business and has leadership positions in bourbon, with Jim Beam(R) and Jim Beam Black(R), the number one selling bourbon worldwide; Knob Creek(R) bourbon and The Small Batch Bourbon Collection(R); and cordials, with DeKuyper(R), the number one cordial line in the United States. A joint venture between Jim Beam Brands Co. and The Absolut Spirits Company Incorporated, Future Brands LLC, provides sales and distribution services in the United States for the company's spirits brands. Fortune Brands, headquartered in Lincolnshire, Illinois, is traded on the New York Stock Exchange under the ticker symbol FO and is included in the S&P 500 index.

Starbucks(TM) Coffee Liqueur, 20% Alc./Vol. (C)2004 Fielding & Jones, Ltd., Cincinnati.

Enjoy & Drink

Tastefully. Responsibly.