Bakersfield, Calif.-based Bolthouse Farms has entered a definitive agreement to acquire from Starbucks its Evolution Fresh brand and business — primarily organic, cold-pressed premium juice products.
Employees who worked for Evolution Fresh will also transition to Bolthouse Farms, according to a news release.
Bolthouse Farms is the No. 1 premium refrigerated beverage brand in the U.S. and one of the largest carrot growers and distributors to North American retailers, according to IRI data of the last year through May 1. The agreement provides an opportunity for Evolution Fresh to grow while Starbucks focuses on its core business.
“We feel there is a great runway and opportunity to take Evolution Fresh to the next level, and Bolthouse Farms' considerable experience and success in the premium beverage category will allow the brand to continue growing,” Hans Melotte, Starbucks executive vice president of global channel development, said in the release.
The acquisition will expand Bolthouse Farms' beverage portfolio by adding a full lineup of primarily organic cold-pressed, premium juices to its existing offerings of nutrient-dense, plant-powered juices and smoothies. Starbucks stores in the U.S. will continue to sell Evolution Fresh products.
Bolthouse Farms is part of Butterfly, a private equity firm specializing in the food sector, especially high-growth, on-trend categories.
The transaction, which is for an undisclosed amount, is expected to close later this year.
“We have long admired the Evolution Fresh brand and see tremendous untapped potential in the premium beverage category,” Bolthouse Farms consumer brands president Bill Levisay said in the release.