Starbucks enlists PepsiCo to distribute Ethos water brand

by Eric Schroeder
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SEATTLE — A little less than a year after launching Ethos water in its U.S. company-operated stores, Starbucks Coffee Co. has enlisted Purchase, N.Y.-based PepsiCo to distribute the water, a move Starbucks believes will significantly increase distribution and move the company closer to reaching its contribution goal of $10 million by the end of 2010. For each bottle of Ethos water sold, Starbucks makes a donation of 5c to help children around the world get clean drinking water.

As part of the agreement, the North American Coffee Partnership, which is a joint venture between Starbucks and PepsiCo, will take over the co-packing, distribution and marketing of Ethos products in the United States and Canada. PepsiCo will use its resources to extend the reach of the brand outside of Starbucks retail store environment.

By 2007, the companies hope to have Ethos water available in additional bottle sizes and case-packs.

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