Starbucks (SBUX) is itching to expand into grocery aisles, but we didn't know the scope of the company's ambitions until now. They're huge.

"In the next 12 to 18 months, we will be unveiling new products and entirely new categories," chief executive Howard Schultz told the German magazine Der Spiegel. "We're going to build a major multibillion-dollar business in the grocery industry for Starbucks, both domestically and around the world."

It's clear Starbucks isn't content to just stay in the beverage world. Prepare for some surprises, Schultz added. "I think people are going to be quite surprised over the next few years at what Starbucks is capable of doing," he said.

Will Starbucks feel the pinch from rising coffee prices? Check out analyst comments in the following video.

Post continues after video:
So can we expect to see Starbucks-branded chicken tenders or potato chips? The company isn't giving any specifics. But it has said it wants to build a portfolio of billion-dollar brands inside and outside its stores. It spent $9 million last year researching new food, drinks and equipment.

So far, Starbucks has focused on its Via instant coffee, its Frappuccino beverages and the Tazo tea brand.

Get ready for some big changes. But really, where else could Starbucks go in the U.S.? It's pretty much tapped out the opportunities for new cafes. Sure, there are still some places in America where you won't find a Starbucks for miles, but the prime locations are all taken.

The company made some bad real-estate decisions in the past, and is slowly opening more stores, but the real growth is in international expansion. Within the U.S., the growth will be in key partnerships and licensed deals.

Last year, Starbucks brought in nearly $9 billion on its coffee shops and retail business. But the global consumer packaged-goods business had only $707 million in sales -- paltry by comparison.

And that's where Schultz is focused. He has told shareholders that the grocery business will one day rival the success of the coffee shop segment.

One important partnership is Starbucks' deal with Green Mountain Coffee Roasters (GMCR), which makes the popular Keurig line of one-cup brewing systems. Starbucks coffee is headed to the Keurig K-Cup packs in November. Green Mountain sold 2.9 billion of those K-Cups last year, a 75% increase from the year before.

Starbucks thinks the deal with Green Mountain will generate around $1 billion.

Starbucks is having the strongest financial year in its history, Schultz told Der Spiegel. And in an ironic twist, the foundering economy is contributing to its success. " In the last few years, our stores have in many ways become a respite for people seeking refuge, especially during bad times," he said. "In this sense, we've created something of an affordable luxury."