Photo: By bradlauster on Flickr
Starbucks is laying down $100 million to buy San Francisco bakery chain La Boulange owner Bay Bread Group reports Lisa Baertlein at Reuters.Food has always been a problem for the world’s biggest coffee chain, so it’s trying to find ways to patch that up. This marks its biggest non-coffee acquisition ever.
Bay Bread Group currently has 19 cafes in the San Francisco Bay Area.
The first thing Starbucks plans to do with its new business is to put La Boulange croissants, pastries, cookies, and more into Starbucks stores everywhere.
Plus, Starbucks plans to make La Boulange a national chain on its own.
Food remains a relatively small part of Starbucks’ business, accounting for about 19 per cent of the company’s U.S. sales.
From the press release:
“This is an investment in our core business. After more than 40 years, we will be able to say that we are bakers too,” said Howard Schultz, Starbucks chairman, president and CEO. “In La Boulange bakery and Pascal, we’ve found a company and a culinary artist who share our passion for creating premium products, reinventing and elevating an entire product category, and delivering the best customer experience. We looked at opportunities comprehensively when making this acquisition and we believe La Boulange is truly unique in terms of visionary leadership, product taste and quality, brand authenticity, bakery capabilities, and potential for growth.”
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