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Starbucks to purchase Portland Bureau of Water Works

10/24/2002

Associated Press

Portland, OR - In a move that has surprised some Portland residents, Starbucks Corporation (Nasdaq: SBUX) has reached an agreement with the city of Portland to own and operate the Bureau of Water Works.

While many expected Seattle to be the first city in the Pacific Northwest to sell its water works to Starbucks, a spokesperson for the coffee giant says that Portland is a logical first choice. "In Seattle, the water has so much chlorine in it to kill bacteria that it ruins the flavor of home-brewed coffee. Portland, however, has untreated water that is perfect for our future home-delivery coffee services." Starbucks does plan to caffeinate the water supply, but say that most customers won't notice the difference. "So many people already drink coffee that the small amount of caffeine in the water supply will have little affect."

Some environmental groups tried to stop the sale of the Bureau of Water Works to Starbucks, citing the corporation's alleged mistreatment of Mexican workers and possible negative environmental side effects on local rivers and streams. "What happens when caffiene flows in to the sewers and out to the Willamette? Who is taking care of the salmon?" worries one local environmentalist.

Portland Mayor, Vera Katz, says that selling the bureau to Starbucks only makes sense. "With the current city budget crisis, as well as past computer billing problems in the bureau, it seemed mutually beneficial to have Starbucks delivering water to the city. Besides, if corporate sponsorship is good enough for our schools, it's good enough for the city of Portland! The City Council stands by its decision to sell the Bureau of Water Works, and we feel that water customers will agree."

Initially, only caffeine will be added to the water supply. In coming months, the new Starbucks Water Works will implement an optional coffee delivery service, where a coffee-only line will be installed directly into the home or business. Customers will have a wide variety of bean choices, ranging from Shade Grown Mexican to Arabian Mocha Sanani. Starbucks representatives cite Portland General Electrics move to provide a variety of power sources as the inspiration for the new water works plan.

"Our goal is to better serve Portland's water customers by providing a greater selection in their water services."

(Copyright 2002 by The Associated Press. All Rights Reserved.)