This is Starbucks’ 6th largest (disclosed) transaction. sourcing and roasting the highest-quality arabica coffee in the Please consider resizing your browser window. Starbucks' expects Evolution Fresh to operate at a modest loss in fiscal 2012 and breakeven in fiscal 2013. transaction closed today. new products, enter new categories and expand into new channels of Starbucks If you follow the organic scene in New York City, the announcement that Starbucks is entering the juice business comes as absolutely no surprise. Starbucks Acquires Evolution Fresh to Establish National Retail and Grocery Health and Wellness Brand ... are unchanged as a result of this acquisition. Evolution Fresh packaged juices will continue to be sold at Starbucks and grocery stores. Starbucks purchases and roasts high-quality coffees that the Company sells, along with handcrafted coffee, tea and other beverages and a variety of fresh food items, including snack offerings, through company-operated stores. It will share Starbucks mission and values, be pioneered by Starbucks partners (employees), and provide a new wholesome portfolio of food and beverage offerings. This is Starbucks’ 5th transaction in the United States. Since 1971, Starbucks Coffee Company has been committed to ethically Starbucks Acquires Evolution Fresh to Establish National Retail and Grocery Health and Wellness Brand ... are unchanged as a result of this acquisition. I have read and agree to the Privacy Policy. There’s something in the mix here, too, that brings up the question of scale and the sourcing of product ingredients. REUTERS/Kim Hong-Ji. developments, except as required under the federal securities laws. La Boulange was a purchase intended to help Starbucks boost its food sales, a notoriously weak part of the chain's business. Closing roughly 400 store after spending $750 million makes it seem as though Starbucks is bleeding money. juice segment, its significant next step in entering the larger $50 A huge one? Your email address will not be published. Get your FREE subscription to Organic Insider today! La Boulangerie de San Francisco is a producer of bread and the pastries to the sauces and the salad dressings using only the freshest all-natural ingredients. For the overall, real health of ‘people and planet’, not simply of any given bottom line, spreading the wealth through disseminated, local, organic sourcing would be the way to go. Acquiring Organization: Starbucks Starbucks is an international chain of restaurants that retails handcrafted coffee, tea, and fresh food items. Read More, 09 Oct 2020 unwavering commitment to excellence and our guiding principles, we bring Relations:JoAnn DeGrande, +1-206-318-7118investorrelations@starbucks.com. It uses a unique system known as High Pressure Pasteurization to keep products as natural as possible. growth in the Health and Wellness sector and in the super-premium juice Started by Jimmy Rosenberg, the original founder of Naked Juice, Evolution Fresh is a California-based company that sells a line of organic and non-organic pressed juices in retail locations on the West Coast. product to the marketplace through the creation of a differentiated Bummer! – People have been recruited from the juice and health & wellness industries to develop the prototype, which they have been working on for the past 6 months. distribution into additional channels, as well as begin to make “forecast,” “intend,” “may,” “plan,” “potential,” “project,” “should,” I think it is very much of a case-by-case basis but clearly the ethical part of organic factors into the decision of whether to take a buyout or not. With this At the time, Starbucks planned to build out the brand nationwide with retail stores. market; the potential introduction of super-premium juice by new market Each of these brands are purchased to improve Starbucks' reputation and sales. As soon I have more information about what this health and wellness concept will be, I will pass it along. Starbucks acquired Evolution Fresh for $30 million in cash, and the transaction closed today. Starbucks Coffee Company announced the acquisition of Evolution Fresh. Sign up for Insider Retail. nutritious beverage and food options. Starbucks Corp. is a roaster, marketer and retailer of specialty coffee. It might not be the most efficient way to do business — but judging the acquisitions a failure based on store closure misses the strategy behind the purchases. There were also rumors floating around that Starbucks was looking to buy Organic Avenue, something that Organic Avenue Co-Founder Doug Evans told me was “100% not true.”. Save. or implied, due to risks and uncertainties associated with its business. These risks and uncertainties include: evolving understanding of the nutritional benefits in the juice category. Starbucks brand to deliver on superior best-in-category quality and --- Coca-Cola is planning a major restructuring following its steepest decline in quarterly sales in over 25 years, while the financial impacts of the COVID-19 crisis... I write about this gap between expectations and the new normal often and would be curious about your views of Food/Bev M&A in 2012. Jimmy Rosenberg. Nov 11 2011 --- As part of its commitment to evolve and enhance the Customer Experience with innovative and wholesome products, Starbucks Coffee Company has announced the acquisition of Evolution Fresh, Inc. Starbucks has seen success with expanded healthier menu items to deliver the nutritious, on-the-go options consumers are seeking. Now this product too will always be questioned as to its authenticity. this, Starbucks will look to make investments over time for upgrades to Evolution Fresh, a Starbucks brand, was a pioneer of organic cold-pressed juices having enjoyed a loyal following. retail footprint, CPG grocery distribution channels, digital breadth and Yes, thank you for this informative article. differentiation for a growing number of our juices,” said Jimmy "Consumers trust the Starbucks brand to deliver on superior best-in-category quality and taste. These statements are based on Leveraging Starbucks unique business model – This is Starbucks’ 1st transaction in California. “Not only are we able to tap into the $1.6 billion super-premium juice market, but the acquisition of Evolution Fresh marks an important milestone for us within the $50 billion Health and Wellness sector.” Evolution Fresh was started by the original founder of Naked Juice, Jimmy Rosenberg. That is, according to Julian Bopp,... Wonderful web site. Acquisition. This is Starbucks’ 6th largest (disclosed) transaction. introduce a new health and wellness retail concept which will further When Starbucks announced last week that the company plans to close all 379 of its Teavana stores, it was easy to call the company's 2012 acquisition of the tea chain for $620 million a failure. FoodIngredientsFirst.com is the leading international publisher on food ingredients and food product development. Leveraging Starbucks unique business model – retail footprint, CPG grocery distribution channels, digital breadth and in-depth customer engagement – the company believes it will be able to take a currently undifferentiated, commoditized product segment and introduce a unique, high-quality product to redefine and grow the super-premium juice market. This acquisition by Starbucks is just the first step of a large strategic initiative to tap into the growing health and wellness sector. This was an opportunity to raise the quality and Required fields are marked *. definition of and consumer preference for super-premium juice; continued Acquired Organization: Evolution Fresh Evolution Fresh peels, presses, and squeezes raw fruits and vegetables. Starbucks Acquires Evolution Fresh to Establish National Retail and Grocery Health and Wellness Brand. brand and experience, similar to what Starbucks pioneered 40 years ago fruits and vegetables. Learn how your comment data is processed. concept is planned for early-to-mid calendar 2012. through every cup. strategic acquisition and its significance to Starbucks growing health Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. On behalf of all of us at Evolution Fresh, we are proud to join the Starbucks organization," Rosenberg said. The biggest stories in fast food, shopping, and more. On behalf of all of us at Evolution Fresh, we are proud to join Yesterday, Starbucks announced that it had purchased Evolution Fresh for $30 million in cash and held a conference call formally disclosing its plans to enter the $50 billion health and wellness industry. To share in the experience, please visit us in our All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 Starbucks' tea business has grown 40% since launching Teavana, with particular success in China and Japan. But when we exchanged emails about any interest in selling last year my recolllection was that he was not ready. They cut corners and skip processes to save money and just pay-off the regulators just like happens in other industries! Jimmy Rosenberg has been in the juice business for more than 25 years and will help develop recipes for the new health and wellness concept and for existing Starbucks locations. Whole Foods Launches Amazing Initiative to Help Disabled Kids in Kenya, All Organic Eggs are NOT the Same – Here's How to Buy The Best, Another Reason to Eat Organic – Protect Your Gut Health, The Most Important Area of Your Health that Most People Ignore….Don't Be One of Them, With its New GMO-Labeling Rule, the USDA Has Completely Failed the American Consumer. In July, the chain launched a new Infusions line, made with steeped fruit and botanical blends combined with Teavana iced tea. I’m sure one of the first stores will be in the SF area, so you’ll have to check it out for us! become increasingly aware of Evolution Fresh, the company plans to Overview. (NASDAQ:SBUX) today announced the acquisition of Evolution Fresh, Inc. – If the juice and/or food will be slightly or heavily organic. "The next level is consumers who are looking for an extension of higher quality options and that higher quality is the authentic kind of juice that Evolution is known for.". All rights reserved. in-depth customer engagement – the company believes it will be able to Starbucks acquired Evolution Fresh at a time when the health and wellness space was a $50 billion industry. Sign-up for my newsletter and receive my Top 5 Inexpensive Ways to Shop Organic, I’m a regular person who decided to take his physical and mental health into his own hands. --- Brazilian juice giant Citrosuco has revealed its strategic partnership with StartLife, a Dutch agri-food tech accelerator, to gain better access to European... “will,” “would,” and similar expressions intended to identify Starbucks (SBUX, Fortune 500) plans to expand Evolution Fresh's current distribution and sell its products in Starbucks retail stores. --- Brazilian juice giant Citrosuco has revealed its strategic partnership with StartLife, a Dutch agri-food tech accelerator, to gain better access to European... --- This week in industry news, Danone revealed its intention to sell its remaining stake in Yakult while Newlat Food submitted a non-binding offer to acquire all the... --- Starbucks is targeting eco-conscious consumers by rolling out more plant-based offerings in selected stores across Asia from this month.