Starbucks Acquires Assets and Development Rights for its Quebec and Atlantic Canada Operations
Starbucks Coffee Canada, Inc., a wholly-owned subsidiary of Starbucks Coffee Company (NASDAQ: SBUX) today announced it has reached an agreement to acquire substantially all of the assets, including development and operating rights from Coffee Vision, Inc. ("CVI") and Coffee Vision Atlantic, Inc. ("CVAI"), its licensee in Quebec and Atlantic Canada. Upon closing this transaction on August 25, 2008, Starbucks will transition approximately 40 licensed locations to company-operated locations. In addition, Starbucks will also acquire full development and operation rights for retail stores in these provinces. As part of the agreement, more than 740 CVI and CVAI employees are expected to become partners (employees) of Starbucks Coffee Canada.
"CVI and CVAI have been great partners for us, and their employees have done a tremendous job creating an environment that truly delivers the Starbucks Experience," said Colin Moore, president of Starbucks Coffee Canada. "Specifically, the 'Café Starbucks Coffee' brand and the unique offerings in Quebec have demonstrated our respect for the local culture and tradition."
According to CVI's president Michael Aronovici, the agreement has a positive outcome for all concerned. "I am proud of what we've created in Quebec and Atlantic Canada and so grateful to our employees for their dedication and commitment," he said. "This is a great time for Starbucks Canada to step in and continue growing the business. This is also an exciting time for me and my team. Over the last 18 years, we've been tremendously successful at growing great restaurant brands, including Starbucks, and we're thrilled with our future prospects."
To ensure a seamless transition for customers, employees and other stakeholders, upon closing this transaction, members of the current CVI and CVAI operations and development team are expected to join Starbucks in regional management roles.
"We're very grateful to Michael Aronovici and his team for all they have done to build our brand in Quebec and Atlantic Canada," added Moore. "The future for Starbucks in these provinces is very bright, and we look forward to continuing the Starbucks tradition of community involvement in these markets."
Starbucks has been a part of the communities in Quebec and Atlantic Canada since the first Starbucks location opened its doors to customers in 1997. As of the end of the second quarter, March 30, 2008, there were 900 company-operated and licensed stores throughout Canada.
About Starbucks Coffee Company
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting the highest quality arabica coffee in the world. Today, with over 16,000 stores in 44 countries, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at www.starbucks.com.
On March 1, 1987, Starbucks opened its first Canadian store in Vancouver, B.C. In 1995, Starbucks formed an alliance with Chapters, Inc., the Canadian bookstore chain. The next year marked the first stores in the Ontario market, with the opening of five stores throughout the greater Toronto area, and the Starbucks Experience continued to grow throughout Canada.
About Coffee Vision, Inc. and Coffee Vision Atlantic, Inc.
The Coffee Vision group of companies was created by Michael Aronovici in July 2000 for the purpose of developing and operating the Starbucks brand in Quebec and Atlantic Canada. Since that time, they have established the Starbucks Experience by opening approximately 40 Starbucks stores and employing more than 740 employees in these regions.