The Real Reason Starbucks Is Selling the Seattle's Best Brand
As it continues to constrict its understanding of what the coffee experience entails, Starbucks (NASDAQ: SBUX) is selling off its Seattle's Best coffee brand.
The beverage behemoth has today narrowed the notion back toward its main objective of being a coffee shop that its consumers love to visit, while previously it entailed bakeries, health foods, and coffee brands — all at different pricing points.
Starbucks is returning to its roots under the leadership of CEO Howard Schultz, who oversaw the firm's growth into the all-encompassing coffee behemoth.
His most recent divestiture since taking over the leadership of the business he started earlier this year is the sale of Seattle's Best to Nestle (OTC: NSRGY) for an undisclosed sum.
Since Schultz will hand over control of the business to his successor the next year, he is utilising this opportunity to build a leaner, more focused organisation that will be ready for its next phase of growth.
Seattle's Best was bought for $72 million approximately 20 years ago with the intention of growing into a $1 billion brand for the coffee company.