Starbucks' CEO has made it clear that he sees his company's brand going far beyond the walls of its coffee shops. Now comes another indication of that as the world's leading coffee retailer announced a joint venture with Danone to develop new yogurt products that will be available for purchase in Starbucks locations and, later, in grocery stores across the country.
The new line, Evolution Fresh, Inspired by Dannon, will begin with ready-to-eat Parfait Greek yogurt items co-created by the two companies. The line will be rolled out next spring in Starbucks and then in grocery stores in 2015.
Starbucks acquired juice maker Evolution Fresh in 2011 for $30 million as part of the company's plan to launch a chain of health and wellness stores and products. A RetailWire poll taken at the time found that 43 percent thought Starbucks had a large upside potential in the health and wellness space at retail.
"Starbucks is committed to evolving and enhancing our customer experience with innovative and wholesome food offerings," said Howard Schultz, Starbucks chairman, president and chief executive officer, said in a statement. "We are energized by the strong customer response to Evolution Fresh offerings, and believe a strategic agreement with Danone, the world leader in fresh dairy products, affords us the perfect opportunity to grow — and elevate — the Evolution Fresh brand both in our stores and in CPG channels."
Bill Chidley, senior vice president at Interbrand Design Forum, told Bloomberg News that Starbucks' ventures into other businesses brings risks.
"When you start to get too diverse with your portfolio, investors just have a hard time characterizing what you are," Mr. Chidley told the news service. "Are they a house of brands or are they about beverage experiences?"
- Starbucks and Danone Announce Strategic Agreement to Create and Develop an Exclusive Line of Evolution Fresh, Inspired by Dannon-branded Fresh Dairy Products - Starbucks Coffee Company
- Starbucks Looking to Juice Up Sales in 2012 - RetailWire
- Starbucks to Sell Greek Yogurt at Cafes, Supermarkets - Bloomberg News