Coinstar Inc. and Seattle's Best Coffee, part of Starbucks Corporation, have announced an exclusive agreement to roll out Coinstar's new Rubi coffee kiosk in the grocery, drug and mass-merchant retail channels featuring Seattle's Best Coffee beverages.

The kiosks will begin rolling out this summer with approximately 500 kiosks serving Seattle's Best Coffee expected by the end of the year and thousands of machines in the next several years.

"We are delighted to introduce the Rubi kiosk, our third automated retail business. Just as our redbox movie rental and Coinstar coin-counting kiosks reimagined retail, we believe our coffee kiosk reimagines the coffee experience for consumers," said Paul Davis, CEO of Coinstar Inc. "In addition, we are very pleased to work with Seattle's Best Coffee, one of the country's premier coffee brands. Together, we will deliver the kind of quality, convenience and value that we know coffee drinkers on-the-go will appreciate."

After a successful pilot, Coinstar and Seattle's Best Coffee have identified a coffee solution that fills an unmet consumer need within the $40 billion U.S. coffee market. The new Rubi kiosk grinds and brews fresh whole beans in a single-cup process on demand and around the clock. The Rubi kiosk serves brewed coffee and specialty drinks, including mochas and vanilla lattes, with price points starting at $1. It occupies approximately 9 square feet and has the potential to provide increased foot traffic and a turnkey solution for retailers.

"This relationship is a logical next step in our strategy to bring great coffee to new and unexpected locations where it's traditionally been hard to find great coffee," said Jim McDermet, senior vice president and general manager of Seattle's Best Coffee. "Our Seattle's Best Coffee fans will be delighted to find their favorite coffee now available around-the-clock at the places they visit regularly each day."

Seattle's Best Coffee's footprint currently includes more than 50,000 points of distribution at restaurants, convenience stores, cruise ships, movie theaters, airlines, offices, universities and retail locations, as well as packaged coffee offerings at more than 20,000 grocery retailers.

Based on surveys conducted among consumers using the Rubi coffee kiosk while in test, 90 percent indicated they were satisfied or very satisfied with the experience, and 60 percent said they would recommend the Rubi coffee kiosk to a friend or colleague.

The Rubi coffee kiosks serving Seattle's Best Coffee will initially be installed in the Northeast and West Coast regions of the U.S. As Coinstar expands geographically with its coffee kiosk, it will also pursue additional channels as part of an ongoing rollout.

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