Starbucks, founded in 1971, has grown exponentially since its start from a single store in Seattle to a global coffee empire with approximately 30,000 coffeehouses spread across 80+ countries, boasting a market cap of $84 billion as of July 8th, 2024.
To fuel this growth, Starbucks pursued strategic acquisitions, enhancing its menu and fortifying its core brand. This article reviews five major acquisitions Starbucks made in the last two decades.
Teavana, a retail-chain specializing in loose-leaf teas and related products, got acquired by Starbucks in 2012, and its product line is being offered in Starbucks' own stores and online after all Teavana retail stores were shut in 2017.
Starbucks acquired La Boulange, a San Francisco-based bakery chain in 2012, to bolster its food offerings. Although the independent La Boulange locations were eventually closed, Starbucks continued to sell its products in their own shops.
Evolution Fresh, a manufacturer of bottled fruit and vegetable juices, was acquired while the health and wellness sector was booming as a $50 billion industry. Despite closing the few opened Evolution stores in 2017, Starbucks still sells Evolution Fresh products.
In 2003, Starbucks acquired Seattle Coffee Co., using its Seattle's Best Coffee brand to counter inexpensive espresso offerings from competitors like McDonald's and Dunkin' Donuts. Starbucks in 2018 sold the company to Nestle.
Ethos Water, acquired in 2001, serves a dual purpose by raising awareness about water scarcity in developing countries and contributing to Starbucks' profit. A portion of each Ethos Water bottle sold is donated to the Ethos Water Fund for water-related relief in needy countries.
The article also acknowledges Starbucks’ commitment to diversity, inclusiveness, and social responsibility, as demonstrated by their transparent reporting of the diversity of their board of directors, C-Suite, general management, and employees.