), recently announced its plans to enter the Colombian market
with the first store scheduled for a 2014 opening.
The first Colombian store will be opened in the capital city
of Bogota with plans to open more cafes in the city as well as in
other major Colombian cities over the next five years. Moreover,
the Colombian cafés will serve only locally grown espresso and
The Colombian cafes will be run by a joint venture between
Mexican restaurant company Alsea, and Colcafe, a subsidiary of
Grupo Nutresa (a Colombian food processing company). Both Alsea
and Colcafe have been Starbucks' Latin American business partners
for the past few years.
Alsea operates more than 500 Starbucks stores across other
Latin American countries like Mexico, Argentina and Chile.
Starbucks has been manufacturing/roasting coffee with Colcafe in
Colombia since 2008 and also developed its popular VIA Ready Brew
with Colcafe. Starbucks has now expanded it manufacturing
agreement with Colcafe to roast espresso, drip and packaged
coffee for supply at the new Colombian stores.
In addition to opening stores, Starbucks plans to partner with
the United States Agency for International Development (USAID) to
help Colombian farmers increase coffee yields. The coffee giant
has been purchasing coffee from Columbian farmers since 1971. Per
the deal, Starbucks and USAID would invest a joint $3 million to
provide technical and agronomical support to 25,000 farmers
Starbucks carries a Zacks Rank #3 (Hold). Other restaurateurs
Burger King Worldwide, Inc.
Domino's Pizza, Inc.
Cracker Barrel Old Country Store, Inc.
) are currently doing well and have a bright outlook
All the stocks carry a Zacks Rank #2 (Buy).
BURGER KING WWD (BKW): Free Stock Analysis
CRACKER BARREL (CBRL): Free Stock Analysis
DOMINOS PIZZA (DPZ): Free Stock Analysis
STARBUCKS CORP (SBUX): Free Stock Analysis
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