What was the landmark $7.15 billion Global Coffee Alliance with Nestlé in 2018?
In May 2018, Starbucks entered into a historic agreement with Swiss food giant Nestlé. Nestlé paid Starbucks $7.15 billion in upfront cash for perpetual global licensing rights to package, distribute, and market Starbucks-branded whole bean, ground coffee, and single-serve pods across global retail and foodservice channels, with Starbucks receiving ongoing royalties.
How did the 1994 acquisition of The Coffee Connection lead to the Frappuccino?
In 1994, Starbucks acquired Boston-based specialty coffee chain The Coffee Connection for $23 million. The purchase gave Starbucks immediate entry into Boston and New England, as well as the federal trademark rights to the "Frappuccino" (a cold blended beverage developed by Coffee Connection founder George Howell), which Starbucks reformulated into a multi-billion-dollar global franchise.
What was the $620 million acquisition of Teavana in 2012 and what happened to it?
In December 2012, Starbucks acquired mall-based loose-leaf tea retailer Teavana for $620 million in cash. Following declining mall foot traffic and retail losses, Starbucks announced in 2017 the closure of all 379 Teavana retail stores, integrating the Teavana brand into Starbucks' cafes as its primary iced and hot tea product line.
Why did Starbucks acquire Tazo Tea in 1999 and when was it sold?
In 1999, Starbucks acquired artisanal tea blender Tazo Tea (founded by Steven Smith) for $8.1 million. Starbucks scaled Tazo across grocery stores and cafes for eighteen years before selling the brand to Unilever in November 2017 for $384 million in cash to focus exclusively on Teavana.
What was the acquisition of Evolution Fresh in 2011?
In November 2011, Starbucks acquired cold-pressed juice maker Evolution Fresh for $30 million in cash. Starbucks invested in a state-of-the-art high-pressure processing (HPP) juicing facility in California before selling the juice brand to Bolthouse Farms in 2022 to streamline its core coffeehouse focus.
How did Starbucks acquire 100% control of its East China business for $1.3 billion?
In July 2017, Starbucks spent $1.3 billion in cash to buy out its long-standing joint venture partner, Uni-President Enterprises, acquiring the remaining 50% equity stake in roughly 1,300 stores across Shanghai, Jiangsu, and Zhejiang, consolidating full ownership of its fastest-growing international market.
Why did Starbucks acquire Seattle's Best Coffee in 2003?
In 2003, Starbucks acquired Seattle Coffee Company (owner of Seattle's Best Coffee and Torrefazione Italia) for $72 million from AFC Enterprises. Seattle's Best allowed Starbucks to sell mainstream value-priced coffees in fast-food restaurants (Subway, Burger King), convenience stores, and supermarket aisles without diluting the premium Starbucks brand.
What was the acquisition and role of Princi bakery?
In 2016, Starbucks made a strategic investment in and licensed artisan Milanese bakery Princi, founded by Rocco Princi. Princi serves as the exclusive food partner inside Starbucks Reserve Roasteries and standalone Reserve cafes, providing freshly baked sourdough breads, pastries, and artisanal pizzas.
What was Hear Music and how did it influence Starbucks' retail experience?
In 1999, Starbucks acquired music retailer Hear Music for $8 million. Throughout the 2000s, Starbucks displayed curated CDs at store counters, co-producing multi-platinum albums (including Ray Charles' "Genius Loves Company" in 2004) before shutting down physical CD sales in 2015 as music migrated to digital streaming.
What was the acquisition of San Francisco bakery La Boulange in 2012?
In June 2012, Starbucks acquired Bay Area artisan bakery chain La Boulange for $100 million from NextWorld Capital. While Starbucks integrated La Boulange pastry recipes into its national store menu to improve warm food sales, it shuttered all 23 standalone La Boulange cafes in 2015.
How has Starbucks' corporate M&A strategy evolved in recent years?
Starbucks has abandoned speculative non-coffee brand acquisitions (bakeries, juice, retail music, tea boutiques). Current corporate strategy centers on operational streamlining, digital ordering technology, automated coffee machinery, and licensing agreements with global partners like Nestlé.
Did Starbucks ever consider acquiring a food delivery or tech company?
Rather than acquiring delivery or ride-share logistics startups, Starbucks built strategic commercial partnerships with Uber Eats, DoorDash, and Meituan in China, integrating delivery orders directly into store POS terminals.