Starbucks To Open Juice Bars In 2012
1 year ago
World's Largest Coffee Chain To Compete With Jamba Juice
Starbucks Corp announced its plans to start a chain of juice bars starting in early to mid-2012.
The world's largest coffee chain said it bought California-based juice company Evolution Fresh for $30 million in cash.
Starbucks CEO Howard Schultz told reporters on a conference call Thursday, the acquisition is the first of many things the company has planned to venture into the health and wellness market.
Schultz says he hopes buying Evolution Fresh, whose products are sold by a handful of retailers including Whole Foods Market Inc., will give the company a meaningful foothold in the estimated $50 billion health food market.
"We think we can build a major business,” he says.
The first juice bars will open on the U.S. West Coast in early to mid-2012, but the company would not say how many were planned. The chain's name has not been revealed and it was not immediately clear whether Starbucks' familiar logo would be displayed by the new chain, reports Reuters.
Evolution Fresh was started by the founder of “Naked Juice” and sells fruit and vegetable juices. According to its site, it uses a low-heat, flash-pasteurization process to ensure freshness, flavor and nutrition compared to using conventional heat pasteurization.
The jump in markets will inevitably intrude on territory dominated by juice-bar-king Jamba Juice.