Starbucks buys $100m bakery | IR News

Starbucks buys $100m bakery

Posted Date: 06/06/2012

By Inside Retail

Starbucks is continuing its strategy of expanding in the broader food market, paying US$100 million this week for a San Francisco neighbourhood bakery chain.

Bay Bread LLC owns the successful La Boulange bakery brand and the deal includes a contrat for the bakery's founder, Frenchman Pascal Rigo to join Starbucks and drive menu development.

Starbucks says the deal is a response to customer demand for 'more wholesome and delicious food options'.

"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," said Starbucks in a statement.

Starbucks says the 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 US company-operated stores under the La Boulange brand, while also accelerating the expansion of the company’s retail footprint over time in key US cities to further build a differentiated brand and customer experience unique to the premium retail bakery café category."

“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.

* Inside Retail talks to Pascal Rigo. The secret to building a $100 million retail business from nothing. Full story in Friday's Inside Retail digital weekly edition. Click here to subscribe so you don't miss it.

Keywords: Starbucks, La Boulange

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