Starbucks Coffee Company to Acquire the Coffee Equipment Company and Its Revolutionary Clover(R) Brewing System

Not sure what to think about this ... still in shock a bit. Will post more later.

Starbucks Coffee Company (NASDAQ:SBUX) today announced that it has entered into an agreement to acquire The Coffee Equipment Company and its proprietary Clover(R) brewing system. The Coffee Equipment Company is a privately held coffee equipment developer and manufacturer based in Seattle, Wash. Terms of the transaction were not disclosed.

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Comment by Jay Lijewski (TacomaPenna) on March 19, 2008 at 3:49pm
I wonder if the deal included dance lessons from David L. I just hope that the same great Clover crew will be around to make tradeshows more fun.

My head is spinning just thinking about what happens now.
Comment by Nicole Michaud on March 19, 2008 at 2:57pm
It's a dark day indeed for those who have invested $10,000 to be part of the brewing elite.
Saw it coming when Schultz said that Starbucks had lost it's soul but damn he moves fast!
Congrats to the Clover team on their fat check!
Comment by Brady on March 19, 2008 at 2:56pm
Yeah, that's true. Good coffee is still about good coffee, and a good coffee shop is still about good coffee, good service, and personality. These are all things that can't be acquired.

I do need to get a drip rack or a couple of chemex for the shop though. Partly because we were headed that way anyway, and partly so I have something to offer any customers that come in asking about this Cloverbux thing.
Comment by Timmateo Dominck on March 19, 2008 at 2:41pm
Syphon w/halogen heat is the new clover, you can spend $20K on that system instead of $12K on a clover.

Or you can buy a chemex for less than $35 and a press pot for under $15. Old tech is not subject to acqusition by the major industry player.

Just saying, couldn't we see this coming, is anyone really that suprised? Clover was working hard to develop a strong brand alongside an awesome product. There was always an exit strategy in mind....Stanford educations prepare you for the world of business.
Comment by Justin Mills on March 19, 2008 at 2:36pm
Matt don't sell us To Starbucks!!

www.baristaexchange.sbux.com OOOOOHHhh NOOOOOOOO!
Comment by Brady on March 19, 2008 at 2:16pm
Yeah, this stinks.

Brilliant chess by Schultz... even if the indies can still buy Clovers, are they going to be branded with the Starbucks name? Are you going to have to say "yeah, our coffee is extra good because we have one of those great Starbucks coffee machine"? ARGGGHHH!

This also makes it pretty unfortunate that so many in the community have been making a big deal about how superior the coffee from a Clover is. We've done a great job of warming up the market for them.

Guess its time to build a drip rack in a really shiny box?
Comment by Jason Dominy on March 19, 2008 at 2:15pm
Tim, that's true. French presses won't have to be bought from Starbucks, either. (If they allow them to be sold, at all.)
Comment by Tim Noble on March 19, 2008 at 2:09pm
Now, why would I pay $11k for a Clover, now?
(Hello, pricing restructure.)
Matt, I can't tell you how happy I am to have not paid for a Clover, as of yet.
Those bodum presses look better all the time.
Did they get Clovernet as well? They'll F that up, just a matter of time.
Comment by Ben Salinas on March 19, 2008 at 1:52pm
I've tried coffee from the Clover in a few shops, one of which was Starbucks.
I enjoyed most of the cups, but I distinctly remember my reaction to the one from Starbucks. It started out very promising- I tasted flavors which could not yet be identified (since it was so warm). Then, as it cooled, they came out: jute, charcoal, and stale... all mixed together. I was still very impressed, because I could actually taste all those flavors in Starbucks Coffee, which was a first.

My point with this if we can get consumers to realize that coffee isn't about the machine, but about the bean itself, then this isn't a huge deal. Those who still believe that if a cup of coffee is made with a Clover then it is good will have some more difficulty.

But then again, who am I to talk. After all, Starbucks does produce the best coffee in the world. Howard Schultz said "...and today there is not a coffee company on earth providing higher quality coffee to their customers than we are. Period!" and he wouldn't lie about that.
Comment by John Blackwell on March 19, 2008 at 1:51pm
Do you know Zander did work for Starbucks before Clover. The group he put together at Clover to develop his concept is a great group of engineers. But once developed where is the next project, they are not in the running a small business mode.

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