This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Starbucks is searching for new growth opportunities outside of its core business and has found potential in the health and wellness market. It acquired Evolution Fresh (a brand of premium juice) in 2011, and has opened a new store/café concept selling the healthy beverages to shoppers. It plans to have 4 locations by the end of the year. Additionally, it is expanding the distribution of the pre-packaged juices to supermarkets, specialty stores, and Starbucks nationwide.
Here’s a snapshot of some other growth initiatives:
» It acquired Tazo Tea in 1999 and will open its first retail store in the 4th quarter of 2012.
» In June 2012 it acquired Bay Bread LLC, a bakery that manufacturers high quality bread, pastries, and sandwiches. Starbucks will replace its current food offering with these higher quality products.
» It has focused on expanding its consumer packaged business, such as ice cream and K-cups.
The store is small and accessible from an adjacent Starbucks store. There’s a display for pre-packaged juice and sandwiches for shoppers who want to grab and go. Two separate ordering lines let shoppers order at the juice bar or the café. Tables in the center invite shoppers to stay a while (and enjoy free wifi).
Unlike other juice brands, Evolution Fresh uses a no-heat manufacturering process, allowing the ingredients to preserve their rich flavors and nutrients (that would otherwise get destroyed with heat). It uses signage in the store to describe this differentiating point.