Sunday, December 6, 2009

Starbuck's Channel Alliances (Marketing Channels and Supply Chain Management) )




Starbucks, Pepsi and Unilever partner grow the Tazo Tea Ready - to - Drink business.


Starbucks Coffee Company, PepsiCo , Inc and Unilever made a licensing agreement for the manufacturing and marketing Starbucks super- premium Tazo ready to drink(RTD) beverages- including iced tea, juiced tea and herbal infusion- in the U.S and Canada. Tazo's RTD line is integrated to Pepsi/Lipton Tea partnership.

Tazo created more tha a hundred beverages. All of them are done at Tazo headquarters in Portland, Ore. to ensure quality and flavor consistency. Kraft Foods, which distributed Tazo RTD line as part of its 10-year relationship with Starbucks, will continue the distribution of Tazo filter bag teas and tea-latte concentrate, as well as Starbucks and Seattle's Best Coffee.




Starbucks relationship with PepsiCo was established in 1994, when the companies created the North American Coffee Partnership , a joint venture that helped built the RTD, Starbucks Frappuccino, DoubleShot Espresso, Doubleshot Energy+Coffee and other beverages. The beverages were an immediate success. Today PepsiCo is still the sole distributor for Starbucks RTD beverages, and Starbucks has continued access to the thousands of outlets where Pepsi is sold.


Usually producers don't use only one channel to distribute their products. They create strategic channel alliances in order to be able to use another manufacturer's channel. Strategic channels are used specially by growing companies that are developed worldwide. Starbucks is an example of a company that focuses on strategic channel alliances.

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