Starbucks buys Evolution Fresh juice business
The world’s largest coffee chain, Starbucks Coffee Company, announced today that it has bought American-based premium fruit juice company Evolution Fresh for US$30 million (A$29 million).
Announcing the takeover deal today, Starbucks’ President Howard Schultz unveiled plans to establish a chain of juice bars. He said, “With Evolution Fresh, Starbucks will bring a unique, premium juice product to the marketplace, similar to what Starbucks did 40 years ago with coffee.
“Not only are we able to tap into the US$1.6 billion premium juice market, but the acquisition of Evolution Fresh marks an important milestone for Starbucks within the US$50 billion health and wellness sector.”
Based in California, Evolution Fresh currently sells its products in retail stores including Whole Foods Markets and PCC, exclusively on the West Coast. The company will be a wholly-owned subsidiary of Starbucks Corporation.
Evolution Fresh markets itself as being “one of the only juiceries left in the industry that still cracks, peels, presses, and squeezes its own raw fruits”.
Mr Schultz said that, over time, Starbucks plans to make Evolution Fresh products available in Starbucks company-owned retail stores. In order to achieve this, Starbucks will look to make investments over time for upgrades to existing facilities as well as expansion needed for the broadened distribution of the product and for future growth plans for the brand.