SBUX: LINKING CAFÉ AND CPG BUSINESSES

Starbucks announced an interesting strategy to construct a relationship with supermarkets through its own cafes. 

 

Reports came through last night about a new strategy by Starbucks to use its rewards program to bring grocery store customers to its cafes.  Starbucks’ Via product reached sales of $100 million in its first 10 months and Starbucks has reiterated several times over the last few months that creating a significant packaged goods business is a centerpiece of its growth strategy. 

 

The chart below shows TRADE line resistance for SBUX building at $25.03.

 

SBUX:  LINKING CAFÉ AND CPG BUSINESSES - sbux levels

 

Howard Penney

Managing Director