(Image Source: Evolution Fresh)
BY JENNIFER LONG
The juicy rumors are true--NBC explains the latest move by the coffee giant Starbucks.
“When you think of Starbucks coffee obviously comes to mind, but the world’s largest coffee chain is branching out in a new direction. We’re talking juice. Yeah. Starbucks plans to open some juice bars next year, starting here on the west coast.”
The company just finalized its $30-million purchase of Evolution Fresh, a premium juice maker based in California. Starbucks founder Howard Schultz told CNBC the plan - to change the juice business, the same way he changed the coffee business.
Howard Schultz: ““Beginning in the first half of 2012, beginning to open up very unique specialty stores that capture the imagination and our capability around the romance and theater of juice beverages that really is an adjacency to our coffee business.”
But there are some skeptics who say this might be too big of a jump. A brand consultant tells USAToday...
Brand Consultant Jonathan Salem Baskin: "Starbucks cracked the code on how to build an in-store experience... But the question is, do people really want to sit in a retail store and savor juice the way they do a cup of coffee?"
And others agree -- this is a risky move given the history of juice bars. A writer for the Convenience Store News writes...
“Despite lofty aspirations, analysts were more skeptical of the move because of lower margins for juice bars compared to coffee shops, and the fact that Jamba Juice has struggled financially during the past few years.”
But a writer for the Wall Street Journal says -- don’t underestimate Starbucks. It’s not like they haven’t done this before.
Wall Street Journal: “It’s true you’ve got to see there are some risks here. But also who would think we’d be spending 3 or 4 or 5 dollars without even thinking about it for a coffee and they’ve convinced us that it’s possible. Maybe it will work with juices also.”
In addition to the new stores Starbucks plans to sell bottles of the juice in their coffee shops as well as in grocery stores across the country. The move is part of an initiative to put more of an emphasis on health and wellness. And one analyst says it’s a good idea. She told the LA Times...
"Juice and health food is somewhat related to what Starbucks already offers now, and it's a growing and attractive industry... Many people are interested in natural and organic food now."
So far so good. After the announcement Starbuck’s shares rose 57 cents.