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The synergistic dream of music sales piggybacking on overpriced coffee took a hit recently when Starbucks decided to dismantle their record label, Hear Music.  With some success luring Paul McCartney, Joni Mitchell and James Taylor away from the major-label structure, Starbucks music division had some momentum as a place for artists who wanted a new, more direct strategy in marketing their music.

Unfortunately there was more talk about the distribution of these albums rather than the music itself.  However with the Ray Charles album, Genius Loves Company,  they achieved the holy union of multi-million sales and four Grammy awards.

But as Starbucks faces increased coffee competition along with people finally realizing that they may be spending $10+ per day on coffee, this move allows them to focus back on their core business.

It can be assumed that Starbucks will remain selling CD’s from various labels in their stores, but no longer their own.  Have you ever picked up an album with your caffeine jolt?