Starbucks announced on Monday that it is ending its relationship with the Canadian coffee giant and is in talks to buy another coffee chain, CaffeineStar.
Starbucks CEO Howard Schultz said he and Caffeinostreas CEO Mike Schroepfer are in discussions to buy the two brands, with the latter’s brands likely to become part of the deal.
CaffeineStars is one of Canada’s most iconic brands, and the company’s coffee is enjoyed in more than 100 countries.
It is known for its fresh-roasted coffee, which is the highest quality and most affordable in the world.
Schultz said in a statement the Starbucks and Cabbies’ relationship was not renewed.
The deal will be announced on Tuesday.
Starbucks has already announced a merger with J.C. Penney that will merge two of its U.S. stores into one.
It’s not yet clear if Starbucks will sell its coffee to other companies in the future, but it is a possibility.
The deal was first reported by Bloomberg News.
Starbucks stock has fallen 5.5 per cent this year to $42.95.
More to come on this story.