Starbucks Corp. (SBUX) entered Guatemala with joint venture partner Corporación de Franquicias Americanas, and inaugurated its first store in the region on March 19, 2011. The coffeehouse, located in the Condado Concepción shopping center, will mainly advertise Starbucks premium single-origin coffee, Guatemala Finca El Faro.
The location will offer Local single-origin coffee, namely Guatemala Finca El Faro, as well as the full range of Starbucks beverages. Starbucks has long standing relationships with coffee growers in Guatemala that dates back to the foundation of the company in 1971. The Central American country has been a major coffee provider to the U.S. coffee chain and the world’s fifth-largest coffee exporter.
Coffees produced in Guatemala tend to be consistent in taste and quality and serve as the standard component in Starbucks coffee blends. Starbucks also offers three single-origin Guatemala coffees in its coffee line-up, Guatemala Finca El Faro, Guatemala Antigua and Guatemala Casi Cielo.
Through this new outlet, customers in Guatemala will be able to enjoy the full range of Starbucks offerings including hot and cold espresso beverages, Frappuccino blended beverages, brewed coffee, Tazo teas and food.
Starbucks is celebrating its four-decade of coffee retailing and has been providing people with a cozy place to meet over coffee and converse comfortably. To honor its anniversary, Starbucks introduced three new offerings: a premium handcrafted espresso, three food offerings and a special coffee blend.
Starbucks is venturing into the packaged-food business. Starbucks has about 3,000 licensed chains, which are likely to offer samples of Starbucks grocery products.
Starbucks competes with McDonald’s Corp. (MCD). We maintain a ‘Neutral’ rating on the stock for the long term. Further, Starbucks holds a Zacks #3 Rank, which translates into a short-term Hold rating.
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