Subjects

Business

Explore Business
Search
Business blog

Starbucks acquisition provides the base for entry into the juice bar market

A great example to use here which combines takeovers/mergers and also Ansoff’s Matrix.  Starbucks has used a recent takeover as the platform for the launch of a new store concept which it hopes will generate sales and profit growth outside of the core coffee market.

Starbucks Corp has opened the first store in its new Evolution Fresh juice bar chain, its biggest move outside coffee aimed at boosting the Starbucks position in the US $50 billion health food sector. This market is already highly competitive, and Starbucks will find themselves competing against the likes of Pepsi and Coca-Cola.

The world’s biggest coffee chain bought Evolution Fresh for $30 million in November 2011 as a way of establishing a base in the juice bar market. At the time of the takeover, Starbucks Chief Executive Howard Schultz said successful independent juice bars have annual sales of well over $1 million per unit.

The expansion into juice bars is just one part of a transformation plan overseen by Schultz which has been tremendously successful. Starbucks shareholders have seen their share price soar since the firm brought Schultz back as CEO. He responded by initially implementing a significant retrenchment strategy, slashing costs and closing nearly 1,000 Starbucks outlets around the world.  Starbucks shares, which traded at just under $10 in February 2009, had reached $53 by March 2012 - a significant improvement in shareholder value.

This video from Starbucks provides a preview of the new store concept, filmed just before it launched:

The original Starbucks takeover of Evolution Fresh is outlined in this video;

 

Featured
CPD courses

Teaching the New AQA A Level Business

Join Graham Prior and Jim Riley for a resource-packed CPD day which will help you accelerate your planning and lesson preparation for the new AQA A Level Business. We've packed this day with resources to help teach the new spec content. We also consider how best to approach the challenges of a linear Business course.

Learn more ›

Teaching & learning products

AQA BUSS3 Worked Answers (2013-2014)

Exemplar A grade answers to each of the three BUSS3 exam papers in 2013 and 2014

£5.00

AQA BUSS4 Ultimate Essay Writing Guide

This 40 page printed full-colour A4 booklet guides you through the techniques required to write high-scoring essays in both Section A and Section B of BUSS4.

£5.00

Close

Business