SEATTLE, October 21, 2010 - Following a successful 12-year partnership, Starbucks Corporation (NASDAQ: SBUX) today announced the acquisition of Magic Johnson Enterprises' remaining 50 percent interest in Urban Coffee Opportunities (UCO).
In 1998, Johnson Development Corporation (JDC), a division of Magic Johnson Enterprises, and Starbucks Coffee Company entered into a ground-breaking 50/50 partnership to build Starbucks stores in underserved neighborhoods. The partnership's goal was to create economic opportunity and a stronger sense of community in the neighborhoods it served.
"We are incredibly proud of the work this partnership has accomplished," said Howard Schultz, Starbucks chairman, president and CEO. "Together we opened several successful locations, including our Harlem store, which led the redevelopment of that now vibrant neighborhood. The partnership helped create jobs with health benefits, build community gathering places where they're most needed, and empower change makers to innovate and take action in their communities. Thanks to this partnership, Starbucks has deepened our commitment to community development in urban areas and plans additional programs to sustain that commitment."
"Through our partnership with Starbucks, we were able to serve as an economic catalyst in urban cities through the creation of new jobs, use of local suppliers, support for community-based organizations, and by attracting other retailers to the area," commented Earvin "Magic" Johnson, Chairman and CEO of Magic Johnson Enterprises. "Our success also validates the loyalty and support of urban consumers to companies who bring quality products and services which meet their needs into their communities. Magic Johnson Enterprises remains committed to serving Urban America and we look forward to working with Starbucks on its community development initiatives."
Over the tenure of the partnership, more than 100 UCO locations were opened in cities including Los Angeles, New York, Seattle, Chicago, Denver, Detroit, Atlanta, San Diego, San Francisco and Washington, D.C. Starbucks stores in the Harlem neighborhood of New York City, the Bronzeville neighborhood of Chicago, and the Crenshaw district in Los Angeles all anchored redevelopment of the areas.
About Magic Johnson Enterprises
Magic Johnson Enterprises, formed in 1987, serves as a catalyst for driving unparalleled business results for our partners and fostering community and economic empowerment by making available high-quality entertainment, products and services that answer the demands of ethnically diverse urban communities. Through investment, partnership and consultation, Magic Johnson Enterprises has a portfolio of companies that strategically work together to reinforce the organization's focus on serving emerging, multicultural communities. Learn more at www.magicjohnsonenterprises.com.
About Starbucks Corporation
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting the highest-quality arabica coffee in the world. Today, with stores around the globe, 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.
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