Non-alcoholic beverages remain a sweet spot for U.S. eateries.
The market has further potential for growth through innovation,
especially when it comes to healthy solutions. Be it coffee giant
) or juicing giant
) - all are geared up to leverage the trend by adding more
healthy drinks to their line-up.
GREEN MTN COFFE (GMCR): Free Stock Analysis
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STARBUCKS CORP (SBUX): Free Stock Analysis
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Starbucks entered the juice industry with the acquisition of
Evolution Fresh, Inc. in Nov 2011. Evolution Fresh beverages are
expected to be available in more than 8000 U.S. Starbucks stores
and grocery retailers by the end of 2013. Starbucks, which is set
to try its luck in the healthy beverage category, opened its
first Evolution Fresh juice store in Bellevue, WA in Mar 2012,
four months after the acquisition.
Recently, in a bid to ramp up its juice production, Starbucks
unveiled a new state-of-the-art Evolution Fresh juicery in Rancho
Cucamonga, CA. The new 264,000 sq. ft. factory is said to
quadruple the brand's manufacturing capacity. Management expects
the new juicery to expand its share in the 1.6 billion
super-premium juice industry. The facility cost Starbucks $70
To capitalize on the growing demand for juices, last month,
Starbucks announced that its Evolution Fresh line of premium
juices will now be available at
Whole Foods Market Inc.
Evolution Fresh offers premium juices made from fresh, natural
ingredients as well as other food items like wraps, salads,
soups, vegetarian and vegan dishes and others. The juices are
never heated and are made using High Pressure Processing (HPP)
technology, which preserves flavors, vitamins and nutrients of
vegetables and fruits.
Of late, Starbucks has been striving hard to meet the needs of
health-conscious Americans. As per management, Evolution Fresh
juices preferably use locally grown produce. This made Rancho
Cucamonga the perfect location for a juicery site. The location
of juiceries in close proximity to fruit and vegetable farms
significantly reduces transportation time and also helps to
maintain nutrition levels.
Starbucks currently carries a Zacks Rank #2 (Buy). Another
retailer in the same industry,
Green Mountain Coffee Roasters Inc.
) is also similarly placed with a Zacks Rank #2.