Starbucks brews up a deal with Las Vegas Albertson’s

Phil Levine

Tuesday, Nov. 16, 1999 | 11:20 a.m.

New and remodeled Albertson's stores in Las Vegas will soon feature Starbucks coffee stands.

The nation's second largest supermarket chain has signed a licensing agreement with Seattle-based Starbucks Coffee Co. to open more than 100 coffee bars in supermarkets nationwide.

In Las Vegas, plans are afoot to open Starbucks stands at new Albertson's stores, as well as in several of Albertson's former Lucky supermarket locations.

"We've currently confirmed plans to feature Starbucks coffee bars at two new (Las Vegas) stores slated to open next year," said Albertson's spokeswoman Anne Alenskis. "We will likely also consider installing a Starbucks in other stores, including those former Lucky locations up for remodeling."

Alenskis said Albertson's typically remodels stores about every 10 years. As each former Las Vegas Lucky store is up for remodeling, the company will consider adding a Starbucks coffee bar.

The two new Las Vegas supermarkets offering Starbucks will be built at the southeast corner of Ann Road and Drexel Road, and the southeast corner of Charleston Avenue and Sloan Lane.

Supermarket customers will be able to purchase many of the products offered at Starbucks retail locations. Specialty products will include espresso coffees, bottled Starbucks' Frappuccino and Tazo tea, ice cream, and a limited selection of Starbucks merchandise.

Alenskis said the employees serving the coffee would work for Albertson's but will receive training from Starbucks.

"They will be trained in how to work the special Starbucks (coffee) equipment," she said. Promotion and advertising for the new coffee bars will also be handled by Albertson's.

Last month, West Sacramento-based Raley's Supermarket fired the first shot in the battle to satisfy the coffee thirst of local grocery shoppers. Raley's partnered with Krispy Kreme Doughnuts and plans to serve hot coffee and doughnuts at 15 of its 19 Las Vegas locations.

"We also have a partnership in all our stores with the Java City coffee brand," said Raley's spokeswoman Carolyn White. "In stores that have the space, we offer customers a sit-down area where they can enjoy their cup of coffee. In Las Vegas, we're in the process of rolling out Java City one store at a time." Customers can purchase both Java City coffee beans and fresh-brewed coffee, she said.

White said six local Raley's stores currently feature the Java City stands, and only two stores currently offer Krispy Kreme doughnuts. More stores will follow suit in the new year, she said.

Through such partnerships, grocery chains hope to offer customers a wider array of retail choices.

"We see Starbucks arrival as the addition of another department to our stores, much in the same way we view a video department," Alenskis said. "The idea is to provide the customer as wide a range of services as possible."