Friday, November 11, 2011
Starbucks to Start Juicin'
Starbucks has acquired a juice business that they plan to use to open up a new chain of health and wellness stores using juice as their keynote. The business they bought, Evolution Fresh Inc., was bought for $30 million. This one time fixed cost is the price they have to pay in hopes of beating out competition like McDonald's and such. This is because the demand for healthier food is so much higher that Starbucks is trying to take advantage. This is smart seeing as how not only is America demanding healthier foods but also the fact that Evolution squeezes real fruit and vegetables for their juices. Starbucks saw this as an advantage on the competition. These healthier juices will create incentives for people to return back to Starbucks stores because despite the fact that Starbucks hasn't released how many stores will open, Starbucks plans on not only opening independent stores but also carrying products at the local Starbucks's to increase marketing. To begin, Starbucks will only open these stores in the west coast where health is most popular within America, and they will go from there.