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*PepsiCo and Starbucks, already partners in a deal to sell bottled Frappucinos, are turning their attention to bottled tea. The two companies plan to give the Tazo brand greater exposure and expand distribution. *

Tazo's RTD line will be integrated into the Pepsi/Lipton Tea Partnership (PLP), expanding the joint venture between PepsiCo and Unilever. Starting in mid-October, the bottled teas will be made available nationwide through the PepsiCo bottling system.

"By joining forces with the Pepsi/Lipton Tea Partnership, we're tapping into a long history of innovation and expertise in the manufacturing, marketing and distribution of refreshment beverages," said Gerry Lopez, President, Global Consumer Products, Foodservice & Seattle's Best Coffee. "This move puts us in a prime position to take our successful Tazo bottled tea business to an even higher level."

Starbucks' relationship with PepsiCo dates back to 1994, when the two companies formed the North American Coffee Partnership (NACP) – a joint venture that helped build the RTD coffee category in the US through the development and distribution of Starbucks bottled Frappuccino, Doubleshot espresso, Doubleshot Energy + Coffee and other beverages.

"Unilever and Starbucks have been great partners of PepsiCo for over a decade, so culturally it's a great fit," said Mary Barnard, GM/VP, Pepsi/Lipton Tea Partnership. "By engaging the passionate base of Tazo consumers already established by Starbucks, leveraging the strength of the Pepsi bottling system and employing the beverage expertise of the Pepsi/Lipton Tea Partnership, we'll be able to share Tazo RTD products with a larger audience than ever before."

"As the leading marketer of tea beverages in the world, we're always looking for opportunities to bring our global expertise to more tea lovers," said James Wong, Vice President, Business Development, Unilever Americas. "We're really excited about this opportunity to expand the Pepsi/Lipton Tea Partnership and enter into this agreement with Starbucks, whose brands and mission we genuinely admire."

Tazo has created more than 100 unique tea, fruit and herbal beverages in bottled, filterbag, full leaf and tea latte concentrate varieties. All Tazo tea blending is done on-site at Tazo headquarters in Portland, Oregon, to ensure quality and flavour consistency. Samples from the world's finest tea gardens arrive daily, and after thorough testing, only 10% of the teas tasted find their way into Tazo blends. Acquired by Starbucks in 1999, Tazo is the exclusive tea offered at Starbucks coffeehouses worldwide, and Seattle's Best Coffee cafes in the US.

Kraft Foods, which previously distributed the Tazo RTD product line as part of its 10-year relationship with Starbucks, will continue to distribute Tazo filterbag teas and tea latte concentrates, as well as Starbucks and Seattle's Best Coffee packaged coffees in non-cafe channels.