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Starbucks is about to find out just how much it can squeeze out of its brand.

 
On Monday, the world's biggest coffee chain will open its very first retail store -- dubbed Evolution Fresh -- that will not be centered on the coffee cup, but, instead, on the juice bottle.
Goodbye grind. Hello squeeze.
A nation of Starbucks lovers and haters -- and a world of retailers that only wishes it could mimic the coffee giant's success -- is enamored of this supersecret store that's quietly but frantically been under construction in the chi-chi city of Bellevue, Wash., just east of Seattle.
The grand opening comes four months after Starbucks purchased the little-known Evolution Fresh brand, and two days before the company's annual meeting, where CEO Howard Schultz will prophetically point to Evolution Fresh as an early glimpse of the company's future beyond the coffee bean.
For Starbucks, this is the beginning of a carefully crafted path for growth beyond java. Starbucks has one eye squarely on the $50 billion world of health and wellness, where it believes the premium juices and vegan and veggie dishes that the new chain will sell could attract a different type of well-to-do consumer than those who patronize its gourmet coffee shops. At the same time, Starbucks is hankering to run with behemoths such as Kraft and PepsiCo in the near $1 trillion world of consumer packaged goods.
Before any other media, USA TODAY was given exclusive access to the two senior Starbucks executives who will oversee the evolution to premium juice and the even larger evolution into consumer products. If it works, Starbucks could stamp an even bigger cultural footprint than it already has. If it fails, Starbucks may have to go back to the drawing board and rethink if and how it can still dream beyond the bean.
"Our customers are looking for a healthier lifestyle," says Jeff Hansberry, the former Procter & Gamble executive who is now president of Starbucks Channel Development, which will ultimately oversee a plethora of new brands and products. "Juice and nutrition is no longer a fad. It's a full-blown trend," he says.
Some 66% of Americans say they factor in the "healthfulness" of a product before they buy it, Hansberry says.
It's hard to overstate the keen interest among competitors and consumers in the opening of this store. The java world is watching to see if Starbucks can pull off a decidedly non-java retail move. The $5 billion refrigerated juice world is watching to see if Starbucks is about to eat -- or drink -- its lunch. Consumers want to know if Starbucks-owned juice joints can sprout on as many street corners as its coffee shops. (In a word: no.)
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SOURCE: USA Today
Bruce Horovitz
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Prince Malachi is the founder of The Oracle Network and the Streetwear brand Y.A.H. Apparel

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