Hess Runs on Dunkin'

Retailer will install self-service donut, coffee stations in its c-stores

NEW YORK -- Hess Corp. has signed an exclusive agreement with Dunkin' Donuts for the coffee and baked goods chain to offer its donuts, coffee and hot chocolate in a new self-service station in many of Hess' gasoline station-convenience locations throughout the country.

Dunkin' Donuts' presence within Hess Stores will roll out starting in January, primarily outside of New England, initially within Hess locations in Florida, North Carolina, South Carolina and Virginia. Hess said that it plans to introduce at least 175 self-service Dunkin' Donuts sites [image-nocss] in 2008.

"We are thrilled at the opportunity to provide greater value to our customers by partnering with an outstanding brand such as Dunkin' Donuts," said F. Borden Walker, Hess's executive vice president and president of marketing and refining. "In our retail tests, this self-service approach was very well-received by customers. We see this is an important step in our commitment to delivering a great experience for our customers and continuing to grow our brand."

Along with the Hess deal, Dunkin' Donuts also announced another new agreement, this time with Sara Lee Corp. Foodservice Division. The new partnerships will also support Dunkin' Donuts' "aggressive" expansion throughout the United States, it said.

Dunkin' Donuts and Sara Lee Foodservice have partnered to offer self- service coffee stations in locations such as office building break rooms, cafeterias and other venues with large foodservice operations. Dunkin' Donuts will collaborate with Sara Lee Foodservice to identify appropriate locations for the Dunkin' Donuts self-service format.

"Hess and Sara Lee Foodservice are extremely exciting partnerships that we believe will create tremendous value for our company and our franchisees across the country," said Robert Rodriguez, Dunkin' Donuts brand president. "Both agreements will allow us to engage new customers, reinforce our relationship with existing customers and create more opportunities for busy, on-the-go people to keep themselves running with our coffee and baked goods. By reaching more customers in more places more often, we strengthen our brand by generating greater awareness of our menu items and distinguishing ourselves in the marketplace."

In recent years, as Dunkin' Donuts has evolved from a regional chain into a national brand, it has established partnerships with other prominent and respected brands, including JetBlue, Aramark and SoBe. In February, Dunkin' Donuts announced a partnership with Procter & Gamble to launch Dunkin' Donuts coffee at retail outlets nationwide.

Dunkin' Donuts plans to expand its number of existing U.S. stores, moving into new markets while expanding in its current cities. Within the past year, the company has launched plans or entered into agreements for significant expansion in Las Vegas, Indianapolis, Phoenix, Dallas, Austin and Houston, among others.

Based in Canton, Mass., Dunkin' Donuts is a subsidiary of Dunkin' Brands, Inc.

Hess, with headquarters in New York, is a global integrated energy company engaged in the exploration, production, purchase, transportation and sale of crude oil and natural gas, as well as the production and sale of refined petroleum products.

Based in Downers Grove, Ill., Sara Lee Foodservice is a leading supplier of coffee and tea, meat and bakery solutions under such brand names as Douwe Egberts, Superior Coffee and Pickwick beverages; Sara Lee and Chef Pierre bakery products; and Sara Lee, Jimmy Dean, Ball Park and Hillshire Farm meats.

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