In the German magazine Der Spiegel, Starbucks CEO Horward Schultz revealed his grand plan to expand the company’s grocery offerings.
“In the next 12 to 19 months, we will be unveiling new products and entirely new categories,” Schultz said. “I can’t tell you with specificity what it is, but we’re going to build a major multibillion-dollar business in the grocery industry for Starbucks, both domestically and around the world.”
And at an annual shareholders meeting today, Schultz declared that the consumer packaged-goods business “as we know it today will rival the success of our Starbucks retail business.” In 2010, Starbucks’ global consumer packaged-goods business brought in $707.4 million, a fraction of the company’s total $10.7 billion revenues. That’s a lot of catch-up, but Starbucks has been moving toward grocery expansion for months—in March, it split with long-time grocery distribution partner Kraft, which gave Starbucks more control over packaged coffee sales in the supermarket.