Starbucks has made a $100 million dollar cash deal to buy a small bakery chain in San Francisco. Here is part of the press release:
SEATTLE, June 04, 2012 – Responding to customer demand for more wholesome and delicious food options, Starbucks Coffee Company (NASDAQ:SBUX) today announced that it has entered into a definitive agreement to acquire San Francisco-based Bay Bread, LLC and its La Boulange® bakery brand, as well as to hire renowned French baker Pascal Rigo. This acquisition and Pascal’s visionary leadership will bring the artistry of the French bakery to the marketplace in a similar way that Starbucks brought the romance of the Italian espresso bar to many North American coffee consumers for the first time.
La Boulange® bakery and Pascal are known for skillfully crafting authentic French pastries and breads from scratch using high-quality, fresh ingredients. With this acquisition, Starbucks plans to introduce many of Pascal’s secret and storied recipes into its U.S. company-operated stores under the La Boulange® brand, while also accelerating the expansion of the company’s retail footprint over time in key U.S. cities to further build a differentiated brand and customer experience unique to the premium retail bakery café category.
… Pascal has lived the traditional art of French baking since he was seven years old when he began work at his village bakery in Paillet, France. Over the past 40 years he has honed his craft: first by working for several prestigious bakers near Bordeaux and in Paris and later by moving to the U.S. where he has owned and operated several of his own bakeries and restaurants. Pascal opened the first La Boulange® store location in San Francisco in 1999, living with his family above the original café on Pine Street for nine years. Today, breads and pastries are still baked fresh at the location every morning.
100 MILLION for a relatively small bakery. Starbucks plans to roll out the pastries nationwide over the next few years.
The deal is expected to close in the third quarter of this year, and Burrows said pastries and baked items will start replacing Starbucks’ current bakery fare in 2013. There are 17,000 Starbucks worldwide, including more than 10,000 stores in the United States. Starbucks also owns Seattle’s Best Coffee, Tazo Tea and Evolution Fresh fruit juices. La Boulange will be the only bakery in its portfolio.
After production has ramped up to serve the huge market and product is shipped across the USA, I am sure all of the goods will arrive “bakery fresh”.