Kozmo-Starbucks Pact

Kozmo.com will pay Starbucks Coffee Co. $150 million over five years as part of a joint promotional deal. The Seattle-based specialty coffee company will use its stores and other advertising to promote Kozmo.com, an electronic commerce site that sells basic food, entertainment and convenience items and promises same-day home delivery. In return, the privately held Kozmo.com will deliver Starbucks prepackaged coffee beans and teas and will install video drop boxes at Starbucks stores. Kozmo.com currently delivers in New York, Boston, Seattle, San Francisco and Washington, with plans to expand to Los Angeles. Shares of Starbucks rose $1.06 to close at $33.94 on Nasdaq.