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.
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Reader Comments (Page 2 of 2)
11-04-2007 @ 7:07PM
Victoria said...
They're both way overpriced. All people want is your money these days. Good thing I'm moving to Europe where you can find delicious chocolate and coffee for a decent price.
11-04-2007 @ 7:10PM
Sally said...
I am very pleased with the Starbucks I go to. A wonderful group of people work there and the manager is great. i enjoy the coffee and the people. it is a nice place to visit and have coffee with a friend or family.
11-04-2007 @ 7:25PM
jackie said...
Dear Victoria,
There is nothing inexpensive about chocolate/coffee in europe.......have you gone mad?
If you are trying to convince yourself, OK, but please don't delude others with that nonsense.
11-05-2007 @ 1:40AM
sunkaysen said...
McDonalds makes better coffee if all u want is coffee. Otherwise, I order Gevalia online and make it for my dad. I dont drink coffee, when I did, I didn't want a dessert, I wanted coffee.
Maybe McDonalds should buy Godiva. I'd like that, could order 2 cheeseburgers and a truffle box instead of fries!
11-04-2007 @ 7:28PM
Dimitri said...
*$$ is no longer what it used to be. Corporate coffee is no longer the way to go. Always check out the local mom-and-pop coffee shops, better coffee, better atmosphere. Just my humble opinion here.
11-05-2007 @ 11:55AM
Joanna said...
I make my own coffee at home before my 2 highschool kids and I go out in the morning. And guess what? I love it! Every single sip! That is all what matters. My point is: if you don't like strbx, don't go there to make yours and others' life miserable. Life's too short to worry about little stuff like that. Go Comanche!!!
11-04-2007 @ 7:46PM
Chris said...
I hope they don't get it they mess up my orders all the time. Once I went there I ordered one of there cakes paid got my drink got it wrong cold not hot how can they mess that up then ask for the cake and the guy who waited us starts charging for another one. I was like you never gave me the one we paid for just two minutes ago he was like yes I did and says I took it I was like since I have been standing here the whole time how did I get it put my hand through the glass like magic. Finally his manager walks up and says rudely just give him one and gives it to me like I didn't just pay for it. If they get the company they'll send you a half box of chocolates and you will complain they'll say you ate half now want your money back. Now I am a Dunkin Donuts fan hate starbucks.
11-04-2007 @ 7:52PM
Espresso said...
Starbux never has gotten it right, with coffee or any of the "enhancements" its tried over the years. Seems they're not satisfied with coffee as a core product, maybe because they can't get it right and have to rely on overdone, dairy infused concoctions to have something ready to sell their self-absorbed public. You want good chocolate? Go to the local choclatier. You want better coffee? Support your local, independent coffeehouse. Starbux is neither.
11-04-2007 @ 7:58PM
SHE said...
It's NOT burnt people! Like wine, it has it's quailities, and for Starbucks, that would be a Smokey quaility, which some people like and other's don't. that's why there's variety in this world! For me, I would never drink a D&D or 7-11, but that's my preference. The thought of Godiva & Starbucks hooking up, I think is a great marketing idea. They can sell both in each other's store. I can get Godiva chocolate in my Mocha Cappicino, or a pound of Starbucks coffee infused chocolates in my local Godiva shop, along w/that diamond necklace, I'll be stylin'!! :] peace
11-04-2007 @ 8:18PM
breezy said...
Just for all you people who just love to spend a fortund on Starbucks coffee, they buy the cheapest costa rican coffee bean sold. What is gourmet to Starbucks, is junk to the market. So many better quality coffees out there.
11-04-2007 @ 8:20PM
Diane said...
I like Starbucks and it definately depends on where you go because the coffee can taste different from location to location. I guess I am lucky that the one closest to my house makes a good cup of coffee and the baristas are always super friendly and nice. In the 5 years I've been going there I've never had them make a mistake with my order but my orders are pretty simple with no frills. If the wait was long or the couple of times they missed my order because of the rush, they gave a coupon for a free drink. Dunkin seems to mostly taste burnt to me. However, my favorite coffee would have to be Dean and Deluca. I just discovered them this past summer and am so hooked on the taste alone. I even sprung for two bags of their House roast which is devine.
11-04-2007 @ 8:29PM
Nate Merit said...
I've only tasted Starbucks high-priced java a few times, but it definitely was NOT worth the price! Just gimme a cuppa joe.
11-04-2007 @ 8:39PM
Laura said...
Starbucks is great! Great coffee, great customer service! Dunkin Donuts coffee is crap---and so is the customer service!
11-04-2007 @ 11:02PM
Al Kaplan said...
I go to the one near my house 2 or 3 times most every day. The barista all know me by name and they introduce me to new baristas. There are a lot of regular customers and we all know one another. I happen to like the flavor of their coffee.
11-06-2007 @ 5:37PM
FLORE said...
I sometimes go to Starbucks for lack of other coffee shops. I hate it that they're at every corner. I like to see variety of other type of coffe shops and not a monopoly. Their stores are usually dirty and messy and they don't have good coffee. It's just overrated. It's time for other coffee shops to flourish so we don't have to go to starbucks when we feel like having a cup of latte.
11-05-2007 @ 2:08PM
Peter said...
I think Starbucks has one of the best people working in their store. No matter which store I go to I can be sure of one thing...the people care, they are not just some robot behind the counter like you get at Dunkin or McDonalds. Plus if you havent looked recently, the price of coffee at these other stores have skyrocketed so a cup of good coffee might cost you .15cents more than the crap you get at these other stores. Try a Dunkin Donut for $1.00....great deal.