/ 13 December 2004

Café chain puts Ray Charles back at the top

It is one of the surprise hits of the year, restoring a legendary artist to the top of the charts after a break of more than 40 years. Last week it received the United States music industry’s ultimate accolade, nominations for Grammy awards in the two big categories, album of the year and record of the year.

But the success of the album of Ray Charles duets, Genius Loves Company, is not due only to the artist’s death this year, or the release of a Hollywood biopic, or even the quality of the record.

In part, it is thanks to a chain of cafes that figured that its customers, befuddled by large record stores, might like to browse some music as they sip their lattes.

Released at the end of August, the album has sold just over 1,3-million copies in the US and approaching 60 000 in the UK. The retailer that has sold the most copies in the US is not Tower Records or any of the music chains. It is not even Wal-Mart or another pile ’em high, sell ’em cheap superstore. Instead, the coffee chain Starbucks leads the way, selling 350 000 copies.

”There’s a void,” says Starbucks president of music and entertainment Ken Lombard. ”Once you realise that the music industry is in a state of turmoil in terms of retail distribution, it’s a natural fit.”

The feat has other music retailers scratching their heads and wondering. With CD sales in precipitous decline and traditional record shops under siege from internet-based music retailers, the emergence of Starbucks as a force in CD sales signals yet another shift in a volatile and fragile market.

But the HMVs and Virgin Megastores shouldn’t panic just yet. The experience with the Ray Charles CD is that the coffee chain has helped uncover a new consumer, one not being catered to by traditional music stores.

”It taps an enormous adult audience that is being underserved,” says Glen Barros, president of Concord Records, the jazz label behind the Ray Charles CD. ”Music traditionally focuses on the youth market. But as you become older and develop other priorities, you can become disconnected from music. It can be a daunting experience to go into a large record store. What Starbucks has done is to say, we’ll help select and present titles for you.

”The effect is that it increases the market. And the awareness is incredible. People knew about the record in the first week of release. Regardless of our print advertising or other campaigns, it was always the same thing, from family, friends: Hey, I just saw a new Ray Charles CD in Starbucks.”

But it doesn’t stop there. Starbucks also co-produced the record with Concord. While it has been selling compilations of favourite tracks chosen by well-known artists for some time, being involved in an original recording from its inception was a new departure.

Starbucks involvement in music production started when it bought Hear Music, a small label specialising in compilation CDs in 1999. This year, Hear Music has released 16 compilation CDs, chosen by artists such as Willie Nelson. More original CDs are set to follow, particularly given the success of the Ray Charles recording. ”We’re looking to do more deals,” says Lombard.

Starbucks also has ambitious plans for selling music. Alongside the small racks of own brand compilations available in most Starbucks, the company plans to extend its Hear Music media bars in its cafes, where coffee-sipping musos can download tracks from a catalogue of 200 000 songs on to a blank CD.

Beyond that, next year sees the launch of a national chain of Hear Music stores, based on a prototype in Santa Monica, near Los Angeles. Inside, racks of CDs boast a selection that might be the envy of many record shops. Customers can buy CDs or burn their own disc, depending on the availability of the track. The cost is about $1 per track.

”Starbucks believes music to be an important part of their retail experience,” says Barros. ”It’s convenient for customers — there it is when you get your morning coffee — and it taps an enormous adult audience that is being underserved.”

But would Ray Charles have approved of his music being sold through a chain more notable for its frothy mocchachinos than its devotion to artist and repertoire?

”He liked the tie-in,” says the album’s producer, John Burk. ”We explained the situation to him and he thought it was a very smart idea. He had a very good business sense. Not much got past him.”

The blend of coffee and music is, insists Barros, a complementary one. ”Even though Genius Loves Company has been sold through a coffee store, Starbucks is a credible source for music. Starbucks partly helped create the awareness that he deserved. It’s sad he’s not here but I’m sure that he’s up there smiling down at us.”

Finding the right blend

Hear Music, the record label bought by Starbucks in 1999, produces compilation albums with tracks chosen by top musicians. Among those who have chosen CDs, and the artists they have selected, are:

Rolling Stones: James Brown, Otis Redding, Eddie Cochran, Beach Boys, Muddy Waters

Tony Bennett: Bing Crosby, Count Basie, Louis Armstrong, Frank Sinatra, Billie Holiday, Doris Day, Abyssinian Baptist Gospel Choir

Sheryl Crow: Bob Dylan, Carole King, Aretha Franklin, Emmylou Harris, The Pretenders

Yo-Yo Ma: Bach, Mozart, Dave Brubeck Quartet, Edgar Meyer, James Taylor, Edith Piaf

Ray Charles: Duke Ellington, Nat King Cole, Charlie Parker, Hank Jones, Ella Fitzgerald, Miles Davis, Willie Nelson

Lucinda Williams: Leonard Cohen, Nina Simone, Patty Griffin, Joao Gilberto, Anne McCue – Guardian Unlimited Â