Starbucks Invests in Bakery, the Latest of Howard Schultz' Big Deals
Starbucks (SBUX) - Get Report founder Howard Schultz is no stranger to wheeling and dealing in order to fatten up his company's sales.
The Seattle-based coffee giant struck again Thursday, announcing it was making an unspecified investment in Italian artisan bakery and restaurant company Princi. Princi will become the exclusive food offering at all Starbucks Roastery locations, which are the company's giant new upscale coffeehouses being positioned in major metro areas such as New York City.
The partnership also means Starbucks will have a bakery on site at select stores for the first time in its 45-year history. In light of the deal, it appears the new Starbucks is actually a Panera Bread (PNRA) .
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TheStreet takes a brief look back at Schultz' other headline-grabbing deals.
Bay Bread Group's La Boulange Cafe & Bakery
Year acquired: 2013
Purchase price: $100 million
The La Boulange pastry line, consisting of croissants and sweet treats, has since rolled out to Starbucks stores nationwide. The chain's 23 or so stores in the San Francisco Bay area that Starbucks also acquired were closed in 2015.
Teavana
Year acquired: 2012
Purchase price: $620 million
Teavana is still the largest deal in Starbucks' history, and gave it access to the over $40 billion global tea market.
Starbucks opened several Teavana tea bars across the country where it offered handcrafted tea beverages not unlike those at Starbucks. It closed the tea bars, however, earlier this year. Meanwhile, execs have been plotting Teavana's packaged-goods strategy, which may lead to bottled teas at supermarkets in the not-too-distant future.
Evolution Fresh
Year acquired: 2011
Purchase price: $30 million
The brand has been expanded to a range of flavors that can now be found in Starbucks retail locations and grocery stores. One can also get an Evolution Fresh smoothie made inside a Starbucks store, or a pre-packaged parfait.