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STARBUCKS CORP. Seattle, Washington Chain Brewing Rewards For Latte Lovers.(A)

Investor's Business Daily

| April 02, 2003 | COPYRIGHT 2003 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: MARILYN MUCH

The folks at Starbucks Coffee Co. are about to add a new type of sweetener to the pot.

This fall, the coffee king is set to debut a Visa card that boasts the reloadable stored-value feature of its successful Starbucks Card, but also works like a credit card.

The new card, to be issued by Bank One Corp., marks the launch of Starbucks' first customer appreciation program. It could serve as a key marketing tool and revenue generator, analysts say.

Here's how it works: Qualified customers will be extended a credit line. Each time you use it as a credit card, you amass rewards -- or rebates -- that can be spent at Starbucks outlets in North America. You might also receive perks like a free pound of coffee.

"(Starbucks) will be able to pick up incremental sales as consumers earn (rewards) to spend at its stores," said analyst John Glass of CIBC World Markets.

The card's stored-value feature works like a debit card. You put your own money into it for purchases at Starbucks stores. You can keep reloading the card at individual stores or on the company Web site.

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