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Thursday, March 20, 2008
Last updated 9:51 a.m. PT

photo
P-I File / 2006
Zander Nosler pours grounds into the Clover at The Coffee Equipment Co. Inc.

Starbucks deal 'dream come true' for manufacturer of coffee maker

By DAN RICHMAN
P-I REPORTER

Having his company bought by Starbucks Corp. wasn't his initial plan, but it became "a dream come true" for Zander Nosler, who co-founded Ballard's The Coffee Equipment Co. in May 2004.

The 11-person company was bought recently by Starbucks, which said Wednesday it plans to put Coffee Equipment's pricey Clover drip-coffee maker into all but the smallest Starbucks stores.

The purchase price wasn't disclosed. The Clover machine itself was selling for $8,000 two years ago.

"We're ecstatic," said Nosler, 36. "There will be amazing opportunities, amazing resources to turn up the heat on making some new products and doing R&D."

Demand for Clover from Starbucks employees is extraordinary, said Starbucks President, Chief Executive and Chairman Howard Schultz as he disclosed the purchase during the annual shareholders' meeting.

"Every store manager wants one," Schultz said.

The deal announcement drew more applause than any other Wednesday among the 6,000 shareholders at McCaw Hall.

The Clover is described as the first commercial-grade machine to give baristas consistent, independent control over the four variables of drip coffee: water temperature, coffee grind, coffee-to-water ratio and brew time.

Nosler said he was in touch with Starbucks for about a year before they agreed to the buyout. It's not something he initially expected.

"I had in mind the exact opposite," he said.

"When I first wrote a business plan, it did have the idea of Starbucks in it. And I was told early on, 'You'd better not write a business plan that has one customer, because you won't raise much money with that.' So we made a plan that involved going out to the world, to everybody."

That's precisely what Schultz didn't want -- so he bought the company.

Nosler and his business partner, Randy Huett, along with the rest of the employees, plan to remain in their Ballard offices and manufacturing facility for now. All will become full-time Starbucks employees.

P-I reporter Dan Richman can be reached at 206-448-8032 or danrichman@seattlepi.com.
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