Starbucks “Freshens” Up with Acquisition of Juice Maker Evolution Fresh

Starbucks Coffee

Starbucks Coffee

Starbucks Coffee first reinvented itself with the new logo, signalling the rejuvenation of the popular coffee house which also included exploring new revenue streams beyond coffee. Now, it’s finally doing so with the acquisition of juice maker Evolution Fresh.

What is this Juice Maker Evolution Fresh?

Starbucks Coffee acquired the California-based juice maker Evolution Fresh this week for $30 million. Juice maker Evolution Fresh makes natural fruit and vegetable fruit blends, and is one of the few large-scale companies left that still uses real fruit and vegetables, instead of pureed or powdered ingredients. Evolution Fresh juice is already carried on the West Coast in grocery stores such as Safeway, Costco and Whole Foods.

Located in over 55 countries, Starbucks Coffee is the largest coffeehouse company in the world, already caries the Odwalla and Naked Juice brands in its stores, but with this acquisition, it’s possible that Starbucks Coffee will phase those out in favor of juice maker Evolution Fresh.

What the Acquisition of Juice Maker Evolution Fresh Means

Although Starbucks has faced challenges of overexpansion and brand maintenance in the past, with the acquisition of Evolution Fresh, the coffee conglomerate has a few advantages to incorporating the Evolution Fresh juice bars into its mix. First, Starbucks can market the new fresh juices through its stores first before trying them at other retailers or in their own Evolution Fresh juice bars. Starbucks did say that it plans to open a few Evolution Fresh juice bars within the next year, but didn’t exactly say where, when, or how many.

Second, the acquisition of Juice Maker Evolution Fresh gives Starbucks Coffee a chance to expand through a new brand, instead of through its own brand. This is key, since the juice bars don’t have a competitor as big as some of Starbucks’ competitors, such as McDonald’s and Dunkin’ Donuts. If this move is successful, Starbucks Coffee will have a brand new revenue stream with no viable competitors yet. Starbucks Coffee Chief Executive Howard Schultz estimates the health and wellness market at $50 billion dollars, leaving open a huge market share for the coffee conglomerate to gulp up.

The Future Plans of Starbucks Coffee

This acquisition of juice maker Evolution Fresh doesn’t look like another case of over extension or muddled branding, as Schultz said that this move is part of the company’s bigger plan to become a strong health and wellness force on the consumer market. However, only time will tell if people will jump in line and spend $5 on a cup or bottle of juice like they do at the thousands of Starbucks Coffee locations around the worlds. Jumping in line for premium coffee was a new concept back in 1970s, a concept which caught on. Will juice catch on like coffee did with this new acquisition deal of juice maker Evolution Fresh?

Avatar
Carrie Ann
Carrie Ann is Editor-in-Chief at Industry Leaders Magazine, based in Las Vegas. Carrie covers technology, trends, marketing, brands, productivity, and leadership. When she isn’t writing she prefers reading. She loves reading books and articles on business, economics, corporate law, luxury products, artificial intelligence, and latest technology. She’s keen on political discussions and shares an undying passion for gadgets. Follow Carrie Ann on Twitter, Facebook

Recent Posts

Aon – Willis asset disposal aims to ease approval of $30 billion merger

Aon – Willis asset disposal aims to ease approval of $30 billion merger

Aon Plc and Willis Towers Watson have agreed to sell $3.6 billion worth of assets to rival Arthur J. Gallagher & Co. in a bid to appease European competition regulators over th
18 hours ago
Roblox declares Q1, reports $387 million revenue as bookings increase

Roblox declares Q1, reports $387 million revenue as bookings increase

Roblox, the hugely popular online gaming platform, reported its first-quarter earnings after becoming a listed company. Its revenue more than doubled as the videogame company benef
2 days ago
Weak US job report results in volatile market

Weak US job report results in volatile market

A weak job report resulted in a record close on Friday for the US stocks. The US labor department’s monthly non-farm payrolls report revealed employers hired 266,000 new workers
3 days ago
Star and Blackstone launch bids to buyout Australia’s Crown Resorts

Star and Blackstone launch bids to buyout Australia’s Crown Resorts

A bidding war has broken out between Australian casino company Star Entertainment Group and US private equity investor Blackstone Group over Crown Resorts, Australia’s bigges
3 days ago
5 Most Expensive Divorce Settlements in History

5 Most Expensive Divorce Settlements in History

Almost half of the marriages end in divorce is an oft-quoted adage, but surprisingly, this is not true in today’s world. The reasons are varied, gender equality, the higher p
4 days ago
JPMorgan Chase appoints two new CIOS in bid to make its C-suite more diverse

JPMorgan Chase appoints two new CIOS in bid to make its C-suite more diverse

JPMorgan Chase, the largest U.S. bank by assets, has appointed two new executives to head its information units in a bid to make its workforce more inclusive and increase racial an
4 days ago