Starbucks, Dreyers In Ice Cream Venture

For the coffee fanatic who can't get enough, welcome Starbucks Premium Ice Cream.

The Seattle-based purveyor of specialty coffee today said it has hooked up with Dreyer's Grand Ice Cream of Oakland, Calif., to produce five to eight coffee/chocolate ice-cream flavors. The product is expected to be in grocery stores across the nation by next spring.

Financial details were not disclosed, but the two well-known brand names agreed to a 20-year joint venture. The ice cream will feature Starbucks' logo.

Dreyer's is available across the United States and in Asia. Starbucks has nearly 700 stores in the U.S. The company recently announced a joint venture to sell coffee in Japan.

The joint venture with Dreyer's is another way in which Starbucks will broaden its brand awareness. It already sells all sorts of coffee products and has its own candy. Earlier this year, it began testing Mazagran, a carbonated coffee drink, in conjunction with PepsiCo. Like the Dreyer's deal, PepsiCo's participation in the project is not obvious when a consumer buys a bottle of Mazagran.

"Our entry into the premium ice-cream category is a natural extension of our brand-building strategy and represents a significant step toward our goal of becoming the most recognized and respected brand of coffee in the world," said Starbucks Chairman Howard Schultz.

Both companies value quality, people and innovation, said T. Gary Rogers, Dreyer's chairman.

"The joint venture will combine Starbucks experience and expertise in sourcing and roasting the highest quality coffee and Dreyer's outstanding manufacturing, sales and distribution capabilities," Rogers said.