Starbucks squeezing out larger market share

Starbucks squeezing out larger market shareStarbucks has made a move to increase its sales. The company has tapped into a new trend – freshly made juice. Known as the coffee giant, the company has always stayed current and consistently watches for the latest trends.

The Starbucks company has even learned how to profit from a government shutdown. For a specified time period, when a customer buys someone else their favorite beverage, the customer will be rewarded with a free tall coffee in return.  Starbucks CEO Howard Schultz said that the promotion is to help people connect with one another and learn to support each other. He then added, “even as we wait for our elected officials to do the same for our country.”

The company is now tapping into another trend that’s apparently on many consumers’ minds. They are getting away from colas and carbonated beverages to focus on a growing interest in fresh juice beverages. Healthy, fresh juice drinks have turned into a $1.6 billion annual business. The company notes that more people are selecting healthier drinks over the traditional, old school sodas and sugary drinks.

The IBISWorld research group said that the overall juice industry is worth almost $23 billion. They indicate it has grown by 4.3 percent annually on average during the last five years. The market is expected to climb another 6.8 percent each year during the next five years.

Just outside Los Angeles, Starbucks has opened its new 264,000 square foot “juicer” to a tune of $70 million. The facility will enable the company to drastically increase its production of its popular, healthy Evolution Fresh beverages. According to a company press release, the Evolution Brand, which was acquired by Starbucks in late 2011, has “exceeded its aggressive growth plans to be in more than 8,000 Starbucks and grocery retailers by the end of the calendar year 2013.”

While the Mayo Clinic and other health related groups and organizations may dispute the claims of greater health benefits from juicing vegetables and fruits, consumers seem to like them as they continue to take over the beverage market. In the meantime, Starbucks seems to be sweetening their coffee profits with a touch of freshly made juice.

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About the author

Rob is a analyst and reporter covering stocks and business news.