While coffee sales continue to perk along for Seattle-based Starbucks Corp., the company is increasing its presence in baked food items and juice.

Starbucks in June agreed to acquire San Francisco-based Bay Bread, L.L.C. and its La Boulange bakery brand, which includes French pastries and bread made from scratch. Starbucks also hired French baker Pascal Rigo.


“This is an investment in our core business,” said Howard Schultz, chairman, president and chief executive officer of Starbucks. “After more than 40 years, we will be able to say that we are bakers, too. In La Boulange bakery and Pascal, we’ve found a company and a culinary artist who share our passion for creating premium products, reinventing and elevating an entire product category, and delivering the best customer experience.”

Cliff Burrows, president of Starbucks Americas, added, “The acquisition of La Boulange bakery will help us to expand day-parts, drive customer loyalty and ultimately grow the overall business through differentiated brand experiences and multiple channels.”

Expansion in juice came in November 2011 when Starbucks acquired Evolution Fresh, Inc., a maker of premium juice products and based in San Bernardino, Calif. While Evolution Fresh products are sold at Starbucks restaurants, Starbucks opened an Evolution Fresh store in March 2012 in Bellevue, Wash. Besides juice, it sells wraps, salads and soups.

Evolution Fresh in August 2012 gave details on a planned $70 million, 260,000-square-foot juicery in Rancho Cucamonga, Calif., that will support 160 manufacturing jobs and should open in 2013.

Starbucks has not forgotten its coffee roots either.

The company this year made Starbucks K-Cup packs available in participating Starbucks retail stores nationwide. Starbucks is a licensed coffee brand produced by Green Mountain Coffee Roasters, Inc., for its Keurig K-Cup single-cup brewers.

Starbucks in July broke ground on a $172 million plant in Augusta, Ga., that will produce Starbucks Via ready brew, the coffee base for Frappuccino blended beverages and many of Starbucks’ ready-to-drink beverages. Other manufacturing plants are in Kent, Wash., York, Pa., Sandy Run, S.C., and Carson Valley, Nev.

Mr. Schultz spoke in a July 26 earnings conference call about further coffee innovation.

“I could not be more enthused and excited about the launch of the Verismo system by Starbucks, our premium single-cup category innovation that will be a game-changer for the single-cup industry and available for sale in time for the holiday shopping season,” he said.

Through the first three quarters of fiscal year 2012, Starbucks had revenue of $9.9 billion, up from $8.7 billion in the same time period of the previous year, and earnings per share of $1.33, up from $1.15. The company opened 648 net new stores through the first three quarters ended July 1, giving the company a total of 17,651 stores globally.

Starbucks has fiscal-year 2013 targets of 10% to 13% revenue growth, 1,200 net new stores and e.p.s. of $2.04 to $2.14, which would represent growth of $15% to 20%.