Coffee, Tea, Wine and Beer A Starbucks Experiment

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1 Coffee, Tea, Wine and Beer A Starbucks Experiment AUGUST 2009 Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein may be the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian Information Solutions, Inc.

2 If Starbucks were to sell beer and wine Early in July 2009, Starbucks announced it was expanding its menu by adding a halfdozen kinds of beer and wine alongside its coffee and tea selections. The plan is currently a pilot-program Starbucks executed in a few of its Seattle-based stores; however, if the plan proves successful Starbucks will incorporate the concept into all of its locations. And if their revenue is anything like their website visits - during the week after Starbucks announced their plan, visits to their website was 57% higher versus the same week in we can all expect to see wine and beer on our local Starbucks menu soon. In addition, searches for the term "Starbucks" increased 14% the week ending 7/25/09 versus the previous week (week of 7/18/09). Experian Simmons consulted results from its Winter 2009 National Consumer Study/National Hispanic Consumer Study to determine the beer and wine preferences by Census region. Sources: Experian Simmons National Consumer Study/National Hispanic Consumer Study Winter 2009 Full Year Reissue, and Hitwise

3 Which Census Region Visits Starbucks Most? Americans residing in the West are more likely than those residing in other regions to visit a Starbucks location. Region Northeast Midwest South West Index

4 What are the Wine and Beer Type Preferences of Current Starbucks Patrons? Experian Simmons analyzed the wine and beer type preferences of each region's current Starbucks consumers. The graph on the right demonstrates the likelihood the region will drink the wine/beer type. The chart below lists each region's top five wine/beer preferences and as illustrated, the regions' top five preferences are identical. However, the type of wine and the brand of beer vary by region Domestic wines wines Northeastern Region Southern Region Light/Low calorie MidWestern Region Western Region Regular domestic Index Region Domestic dinner/ table wine dinner/ table wines Light/ Low calorie Regular domestic Northeast 52% 44% 37% 35% 32% Midwest 53% 38% 26% 32% 28% South 52% 44% 34% 38% 29% West 48% 41% 27% 30% 30%

5 Which Wine Type/Beer Brand is #1? All four regions' Starbucks consumers are likely to drink the same type of imported table/dinner wine;. Corona topped the list of imported. However, there are considerable variations in domestic table/dinner wine type, regular domestic beer, and light/low calorie beer brands. Region #1 wine type #1 Domestic wine type #1 beer brand #1 Regular domestic beer brand #1 Light/Low calorie beer brand Northeast (254 Index) Chardonnay (242 Index) Corona (237 Index) Samuel Adams (316 (Index) Corona Light (313 Index) Midwest (181) Cabernet Sauvignon (253) Corona (114) Samuel Adams (156) Miller Lite (156) South (296) Pinot Noir (257) Corona (220) Budweiser (115) Miller Lite (189) West (217) Chardonnay (216) Corona (191) Budweiser (130) Coors Light (176)

6 Thank You! For more information, please or call Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein may be the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian Information Solutions, Inc.

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