Starbucks Coffee has agreed terms with Bolthouse Farms for the sale of its cold-pressed juice brand and business Evolution Fresh, the two companies announced late on Tuesday. Financial details of the transaction, expected to close later this year, were not released.
By joining Bolthouse Farms, itself owned by private equity group Butterfly, Evolution Fresh “will have the opportunity to accelerate its growth trajectory” while Starbucks “focuses its efforts on the growth of the core Starbucks business and its partner and customer experience,” read a press release.
“Evolution Fresh is a natural extension of the Bolthouse Farms portfolio and we look forward to welcoming the team,” said Jeff Dunn, chairman and chief executive officer of Bolthouse Farms. “At Bolthouse Farms, with the support of Butterfly, we strive to ensure that the acres we grow and beverages we make have a positive impact on the land, on the people who make up our company, and on all people. By bringing Evolution Fresh into our portfolio, we will extend our spirit of ingenuity and innovation, sharing resources and passion for high-quality, nutrient-dense juices to pioneer solutions for today’s food system.”
“Evolution Fresh has grown steadily over the last several years as a result of our partners’ hard work and commitment to the brand. 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,” said Hans Melotte, Starbucks executive vice president Global Channel Development. “Bolthouse Farms shares the same values and commitment to putting people first in everything they do, which affirms for us that we have found the right opportunity for Evolution Fresh.”
Based in California, Bolthouse Farms produces plant-based milks, juices, protein drinks, salad dressings, and baby carrots. The company was acquired by Butterfly from The Campbell Soup Company in a $510 million transaction in 2019. The group’s portfolio also includes Chosen Foods, MaryRuth Organics, Orgain, and Pete and Gerry’s Organics.
Starbucks announced its $30 million purchase of Evolution Juice in November 2011, with former chairman Howard Schultz framing the brand as a way into the “$50 billion health and wellness sector.” Founded by Jimmy Rosenberg, the California-based brand was an early adopter of high-pressure processing (HPP) technology to preserve freshness and extend shelf-life for its juices and smoothies.
“We have long admired the Evolution Fresh brand and see tremendous untapped potential in the premium beverage category. By bringing these powerhouse brands together — Bolthouse Farms and Evolution Fresh — we will deliver a robust, high-growth, and consumer-preferred portfolio of juices to market,” said Bill Levisay, president, Consumer Brands, Bolthouse Farms.
The sale marks another shakeup in the premium juice category, which has seen market momentum slow over the past decade. Over the past two years, major brands including Naked, Tropicana, Odwalla and Suja have all either been discontinued or sold to private equity groups, similar to Bolthouse’s current setup.