Some might remember that Happy Planet was an organic juice/smoothie that was sold in coffee shops, supermarkets, and convenience stores. One of the main locations where this drink can be found was inside Starbucks. Happy Planet was an alternative to the range of caffeinated beverage inside a Starbucks coffee shop. However, Starbucks now carries something called Naked instead of the Happy Planet smoothie. Is Happy Planet no longer produced? The answer may be “Pepsi.”
Pepsi Bottling Group (PBG) produces and distributes Naked, a Pepsico owned beverage. They also happen to produce and distribute a variety of beverages for other companies, one of which is the Starbucks Frappuccino. So what have happened is that PBG and Starbucks have signed an agreement to carry and distribute each other’s products. PBG will bring the Starbucks Frappuccino into their customer accounts, while Sarbucks will replace Happy Planet with Naked as the coffee giant’s smoothie.
The benefits for both parties are significant. For the Pepsi Bottling Group, getting into Starbucks with their smoothie gives the beverage giant an additional distribution channel. Not everyone going into Starbucks looks for coffee, so their healthy alternative beverage is now a Pepsi product. For Starbucks, having PBG distribute their beverages is a clear winner. Starbucks can continue focusing on what they do best and leave the rest to Pepsi. And having a larger distribution network and dedicated sales force to bring your product in front of the customer doesn’t hurt either. Not to mention that the Starbucks Frappuccino is not limited to coffee shops, but now available in supermarkets, convenience stores, and other grocery stores.
An excellent arrangement to Pepsi Bottling Group and Starbucks, but not to Happy Planet. Happy Planet can still be found at most places like coffee shops and supermarkets, just not at Starbucks. And there goes another little company being shut out by the big corporations.