Starbucks And Whole Foods Market: An Excellent Combination

Aug.28.13 | About: Starbucks Corporation (SBUX)

Starbucks (NASDAQ:SBUX) will sell its Evolution Fresh juice through a partnership with retailer Whole Foods Market (NASDAQ:WFM). Along with its 12 most popular juices, the company will also sell two exclusive juices and an entirely new line of snack bars called Evolution Harvest through the WFM's nationwide chain of retail stores, primarily focused on natural and organic food items.

As said by the management:

"We've received enthusiastic customer support in every market where we've introduced Evolution Fresh juice, and have been working toward our goal of national distribution since the acquisition," said Chris Bruzzo, senior vice president, Channel Brand Management and general manager, Evolution Fresh. "We are excited to offer not only 12 of our most popular juices to Whole Foods Market customers across the country, but also two exclusive juices and an entirely new line of wholesome snacks with the launch of Evolution Harvest." (Source: The company's release.)

This new partnership is a win-win for both the companies.

For Starbucks:

Starbucks is well known for its coffee-based beverage products and is one of the biggest and fastest growing names in the beverage industry. As part of its long-term strategy, the company is looking forward to diversifying into the other beverage and food segments. Evolution Fresh, which offers juices and natural foods, was acquired by Starbucks in 2011, is a key part of Starbucks's strategy to diversify its business to other beverage and food products. The company is attempting to place the Evolution brand as a health focused brand. Its partnership with WFM will help the company to further enhance the image of its Evolution brand, as a brand, which focuses on health and wellness, as the WFM is one of the largest and fastest growing specialty retailer of natural and organic food items, focused on health and wellness.

For Whole Food Market:

This partnership for WFM comes at a time when it is facing a stiff competition from other retailers of natural and organic food items. WFM should get some benefits from the Starbucks's brand recognition and can also learn from Starbucks's innovative and highly successful business strategies, which over the years have defied all kinds of competition.


This partnership is a win-win for both the companies. Starbucks and Whole Food Market makes an excellent combination and this partnership will allow both of them to get the benefit from each other's business strengths and brand image. For Starbucks, the partnership with the WFM will give it the direct access to, large number of, health-conscious consumers of WFM in a one go and that too without any initial marketing efforts. For WFM, this partnership will put some exclusive products, from a high-class and fast growing brand, on the shelf of its stores, and enhance its image among its customers. This partnership may well be a start of long-term relationship between two companies that lead in their respective industries.

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