Starbucks expands its CPG footprint

The dust-up between Starbucks and Kraft last week triggered a RetailWire discussion about the coffee giant’s planned expansion into related consumer goods. Here’s my opinion:

Starbucks has done a good job balancing its focus on better-operating stores with expansion opportunities outside its core business, and its shareholders have been rewarded in the past year. (The growth of Seattle’s Best to other fast-food outlets and the strong sales of Via instant coffee are two good examples.) The challenge for Starbucks, as it considers a broader portfolio of CPG brands, is twofold: First, is there synergy between the new brands and the core beverage business? Second, can Starbucks manage new businesses effectively at the same time that it tries to re-engineer its coffee shops to drive more productivity and comp sales? It should be an interesting process to watch over the next few years.


0 Responses to “Starbucks expands its CPG footprint”

  1. Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s


%d bloggers like this: