Starbucks' New Acquisition Looks Promising

Starbucks recently announced the opening of its first Evolution Fresh juice store in Bellevue, Washington. Evolution Fresh had been selling its juices in grocery stores, such as Whole Foods, before being purchased by Starbucks in November for $30 million.

The new store offers premium juices made from fresh, natural ingredients as well as other food items like wraps, salads, soups, and vegetarian and vegan options. Evolution Fresh is one of the few juice companies that still cracks, peels, presses and squeezes its own fruits and vegetables rather than using pureed or powdered ingredients.

Starbucks' acquisition of Evolution Fresh is part of an attempt to broaden its business as consumers' demand for healthier products increase. The company has introduced lower-calorie and lower-fat food options, sugar-free syrups, and switched from whole milk to 2 percent milk as the default in its drinks.

While the new store offers much healthier options, consumers will be paying for this service. An eight-ounce drink will cost $4.99 and a 16-ounce drink will cost $7.99. While eight dollars for a glass of juice sounds pricey, they hope to reach Starbucks' current clientele by offering high-quality beverages at a premium price.

Based on Starbucks' history of success, I think that their acquisition of Evolution Fresh was a smart decision from a business standpoint. They have already conquered the coffee industry, and by expanding their services into a similar industry that targets different consumers, they will experience even more success.