Campbell Soup (NYSE: CPB) is selling its Godiva chocolate business since too few people want to eat the sweet stuff while they are having a hot bowl of chicken noodle soup. But Starbucks (NASDAQ: SBUX) may think that chocolate and coffee go together.
The Wall Street Journal reports, however, that "should Starbucks indulge in Godiva, which Campbell put up for sale in August, it would be a departure from its modus operandi." Wall Street experts put the price of Godiva at around $800 million.
If Starbucks buys Godiva, it would be a huge mistake. The coffee retailer's shares are near a 52-week low, trading at under $26. They have a 52-week high of more than $40.
The doubts about Starbucks center around its long-term goal of having 40,000 stores worldwide. Investors are concerned that current same-store sales may be too weak to support that kind of expansion. If Starbucks goes into a second business without fixing its first, the company's stock could take another hit.
Godiva may seem like a sweet deal, but all it would do is take Starbucks' eyes off the ball.
Douglas A. McIntyre is an editor at 247wallst.com.











Reader Comments (Page 1 of 2)
11-04-2007 @ 2:31PM
meepstein said...
Starbucks used to make a great cup of coffee but now they over roast it and it tastes burnt. Don't let them buy Godiva because they probably will screw that up also.
11-04-2007 @ 3:36PM
Kevin M Fogarty said...
I dont drink coffee but from what I hear and see thier over-rated..I do buy Godiva choclate for lustful lover's as they deserve only the best so I would like to see it in the hands of someone that care's about the reputation Godiva has only the finest for the finest"sweets for the sweetest"
11-04-2007 @ 3:59PM
Karen Draper said...
I love Starbucks. Go there several times a week.
Just had a going away party for a friend at Starbucks last week.
I wish them all the best of luck with Godiva.
11-04-2007 @ 4:18PM
ss said...
I recently went to starbucks and ordered a Venti Caramel Frappucino without Whip Cream and Alittle bit extra Caramel Sauce....I had this order screwed up 2 times. The first, they didnt add extra caramel, but left the whip cream in it. The 2nd, They added the whip cream, but I stopped them, and told them no whip cream, but extra Caramel sauce, The lady who made it acted like a bitch and told me that I should of requested it when I bought it at first (which I did)....The dumb BIOTCH emptied out half of the frappucino, filled the rest of it with caramel sauce, and put a lid on it, and smiled at me.....It was disgusting......Starbucks Sucks!, I like the old menu better (before they went global), I think its funny that people think there coffee is good, because its not...and stop saying its good just because it has a name like "starbucks"....Dunkin Donuts, Here I come!, BOOOOYAAAH BITCH!, lol
11-04-2007 @ 4:39PM
Kaitlyn Sabre said...
Hey! Be nice to Starbucks, I work there. Lol. They are a great company to work for, and are very focused on customer service. If you had a bad experience, Starbucks wants to know. There are customer comment sheets at every store, and you can also send customer comments on the website. Don't hesitate to send a complaint, the company will work at making your experience better.
11-04-2007 @ 4:42PM
Jenn said...
I used to go to Starbucks every morning until the Venti Drip price went over $2.00. Also I pissed me off that the store by my office started allowing tour busses to stop by during the morning rush. They ran off their regular customers who came by every morning and afternoon for a bunch of people who had never been to a Starbucks and would hold up the line because their friend wanted a mug, coffee, or whatever. The lost at least 20 of the people from my office because of that. We just pull up at the other end of the parking lot now to go to D&D or across the street to Einstein Bagels.
11-04-2007 @ 7:15PM
saraheddi22 said...
I LOVE Starbucks and I LOVE Godiva so I think its a match made in heaven I hope all goes well!!!
11-04-2007 @ 4:58PM
Pamela said...
I have been to Starbucks several times. Each time I got an overpriced, but average tasting, cup of coffee and a snooty attitude from the employees. Some people I know think the snooty attitude enhances the cachet of the Starbucks coffee. Go figure.
11-04-2007 @ 5:04PM
Elaine said...
Please, please, please, keep Starbucks from buying Godiva Chocolates? Can you picture going to Godiva and buying a 'light chocolate, dark center, caramel with no sugar, latte with no whipped cream, but extra chocolate"? Or whatever!!! Keep Godiva clean and free of dopiness from that over-rated, over-priced coffee giant.
11-04-2007 @ 5:09PM
dave said...
I used to frequent Starbucks lots - whenever a Barista made a mistake on a drink, i requested a coupon for a free drink. (any drink - any size). Now I have taken my iced coffee biz to McDonalds, twice as much for 1/2 the price. And, yes, I'm a Starbuck's shareholder.
dave
11-04-2007 @ 5:28PM
am said...
I have had quite a few screw ups at SBX but it will never stop me from going. *Unfortunately I visit everyday (*expensive) cuz I don't feel complete if I don't visit. If they do mess it up they will remake it for me. That's a pretty common practice or they will give you a free drink coupon to make it up. However just the other day I had to write a complaint on SBX website (which I have done before) and they usually will send you a gift card for $5.00 for the inconvenience. Really, most Baristas are super friendly!
11-04-2007 @ 5:33PM
Kaitlyn Sabre said...
Yeah, It's really unfortunate that the partners in the stores you've visited haven't been legendary. The store I work in, and most of the stores in our district have fabulous baristas. We are known for our great customer service, and I think it's a shame that there are partners out there that give us a bad name. You would change your mind if you came to our store :)
11-04-2007 @ 6:11PM
christine said...
Starbucks does taste burnt now and it is too expensive. I do like the ones with the drive ups though.
11-04-2007 @ 6:14PM
Elisabeth said...
I cant belive all of the starbuck haters! I buy from there everyday and I will continue to. I always get excellent service and excellent coffee. I will never go to dunkin donuts, I have always had nasty looking people serving me there. I agree that starbucks is a bit pricey but I enjoy the atmosphere, I dont see dingy toothless people serving me. Even now that I am pregnant I will still go for my Decaf drinks!! I also love the fact that starbucks is now in my local target and stop and shop!!
11-04-2007 @ 6:44PM
Capt Bill said...
I stopped buying when the price of a cup of coffee went thru the roof. Secondly, I stopped going when the taste was that of burnt Cowboy coffee. And last, I stopped buying when the names of specialty coffee sounded like something one takes medicine for.
11-04-2007 @ 6:45PM
Steph said...
I have only been to Starbucks twice, and both times the coffee was terrible. The people always have such a stuck up attatude. Some of you are just plain addicted. I read one that said that "I will never go to dunkin donuts, I have always had nasty looking people serving me there." Well so sorry that "nice looking" people arn't the only ones who need jobs. I've also noticed that normally the people that are called "Nasty" are the people who have the sweeter disposition. I would rather have a "nasty looking" person serving me then someone who thinks their better then me just because they work at a "Cafe". I love chocolate and Godiva is great, but if Starbucks takes them over then that is it for me. I'll just indulge in Hershey. Dark Chocolate is great either way!
11-04-2007 @ 6:51PM
Llyndda said...
No wonder Godiva chocolates have changed. They went from being totally wonderful to inedible and more expensive. When is any one going to figure out that quality is what people want. I've just stopped purchasing chocolates, period.
I used to take a 2 pound box of the actual Godiva cholates, back in the 70's and 80's out in the deep desert with me to egg me on the get my work done. I kept them under the seat of my car and they held up pretty well. I only allowed myself two at a time. Deeply delicious.
I miss the old days when people actually made beautiful candy. The 40's and 50's were even better.
It's just nice to think of the old Godiva chocolates.
11-04-2007 @ 6:58PM
Rachel said...
I'm thinking that Starbucks would be better for Godiva Chocolates than Campbells......maybe! Personally, I do not like Starbucks coffee. They burn the beans and you can taste it in the coffee. It's funny, though, because I used to work in another coffee shop, a local franchise in the Cleveland area, and I used to get a kick out of the Starbucks customers that would come in. They would stick out like a sore thumb! Always asking for venti-this and tall-that. And most would gripe that our coffee wasn't 'strong' enough. I think it's pretty funny how people can become so brand loyal and vehemently defend whatever it is that they love about it.
11-04-2007 @ 6:58PM
Vivi said...
I have never been to a Starbucks and haven't any desire to go there. I am not a coffee fan. I am retired and make my coffee at home and could drink a whole pot full if I cared to for half the price of what a cup would cost at Starbucks.
I have never been that crazy about anything except my husband.
11-04-2007 @ 7:02PM
richie said...
I'll tell you. Starbucks is over rated. Their coffee tastes burnt and they are over priced. I drink 4-5 cups of coffee a day and prefer Dunkin' Dounuts cup of coffee.