NEW YORK — Starbucks Corp. has announced plans to acquire San Francisco-based Bay Bread, LLC in a definitive agreement that would include the company’s La Boulange bakery and the hiring of the renowned French baker Pascal Rigo.
“This is an investment in our core business. After more than 40 years, we will be able to say we are bakers, too,” said Howard Schultz, Starbucks chairman, president and CEO, of the $100-million agreement.
“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. We looked at opportunities comprehensively when making this acquisition, and we believe La Boulange is truly unique in terms of visionary leadership, product taste and quality, brand authenticity, bakery capabilities and potential for growth.”
Food sold at U.S.-based Starbucks stores now accounts for $1.5 billion in revenues and has grown by double digits in each of the last two fiscal years. The acquisition of La Boulange bakery and Pascal, which makes authentic French pastries and breads using high-quality, fresh ingredients, will expand the company’s food portfolio further.
Starbucks hopes to eventually sell La Boulange products at Starbucks company-operated retail stores in the U.S.