Starbucks Acquires Diedrich Coffee Stores

In a strategic move to expand its market presence, Starbucks acquired a majority of the retail stores owned by Diedrich Coffee, which included several locations of the Oregon-based Coffee People. This acquisition was part of a broader trend in the coffee industry, often referred to as the 'coffee wars,' where major players sought to dominate the market by absorbing smaller competitors. The decision by Diedrich Coffee to sell its stores was influenced by the competitive landscape, as Starbucks had been rapidly growing its footprint and customer base. Following the acquisition, Starbucks rebranded the Diedrich Coffee and Coffee People locations, converting them into Starbucks stores, with the notable exception of the Coffee People locations situated at Portland International Airport. This rebranding effort was aimed at consolidating Starbucks' brand identity and enhancing customer loyalty in regions where Diedrich Coffee had previously established a presence. The acquisition not only increased Starbucks' number of locations but also allowed the company to tap into the existing customer base of Diedrich Coffee, further solidifying its position in the coffee market.