Starbucks and Greencore get together for lunch
ONE of Ireland's biggest food companies has a lot to gain from the expansion of global coffee giant Starbucks.
The US caffeinated drink supplier announced this week that it intended to expand its food offering in the US, including a wider range of lunch-time products. Starbucks has never really managed to tap the lunch market, despite the fact that its stores are located in high-footfall locations.
Food sales currently make up less than a fifth of Starbucks' total revenues. This new emphasis on food is important for Greencore, the world's largest sandwich maker, because it is a key supplier of food products into Starbucks US stores. It entered into a new supply agreement with Starbucks earlier this year and by July, was supplying about 1,360 Starbucks stores, or 12pc of the coffee chain's US outlets, with a range of lunch products including sandwiches, wraps and salads.
The relationship generates annual sales of €37m for the Irish company, though this is small in the context of Greencore's overall revenues, which are forecast to reach €1.2bn this year. "For its food supply partners... the evolution of Starbucks' food proposition is a truly outstanding growth opportunity," said Davy stockbrokers yesterday.