Starbucks to Seize Multi-Billion Dollar Cold Coffee Market
May 31 2016 - 6:00AM
Business Wire
Company expects the category of cold coffee to
double in the next three years
Introduces Nitro Cold Brew on tap in major
cities across the U.S. making Starbucks the largest retailer of
this new handcrafted cold coffee experience
Building off of the nationwide launch of Cold
Brew in U.S. company-owned stores, Starbucks debuts new cold craft
portfolio of products including Vanilla Sweet Cream Cold Brew and
Starbucks Doubleshot® on Ice
Starbucks Corporation (NASDAQ: SBUX) today announced a new
line-up of cold beverages that will become the foundation for a new
“cold bar” of coffee and espresso products. This new menu focused
exclusively on the portfolio of cold coffee affirms the company’s
ongoing investment in the category of iced beverages coming off of
the highly successful, nationwide launch of Cold Brew last year in
all company-owned U.S. stores. In addition to bringing handcrafted
vanilla flavor to Cold Brew coffee, Starbucks will also debut a
handcrafted Starbucks Doubleshot® on Ice espresso beverage and
introduce Nitro Cold Brew in select cities.
“For over forty years we have perfected the craft of roasting
and brewing the finest hot coffee and while we have always offered
our customers new options in cold coffee, nothing will compare to
the pace of flavor, craft and brewing innovation we will see in the
next few years,” said Starbucks chairman and ceo, Howard Schultz.
“The opportunity to create an entirely new cold coffee experience
is limitless and our customers are already telling us that they
want to meet us on this journey as cold coffee is now becoming a
go-to drink.”
In Q4 FY15, Starbucks reported a 20% increase in their overall
iced portfolio after the introduction of Cold Brew in its retail
stores and Nitro Cold Brew is currently the second highest selling
beverage at the Starbucks Reserve® Roastery and Tasting Room in
Seattle. According to industry experts*, U.S. iced coffee
consumption has grown by 75% in the past decade and Cold Brew sales
grew 338.9% between 2010 and 2015.
Just in time for summer, this expanded core “cold bar” menu
available in participating stores in U.S. and Canada will now
include:
- Cold Brew: Handcrafted to be
cold from thoughtfully selected beans, slow steeped for 20 hours,
creating a balanced and smooth Cold Brew coffee with hints of
citrus and chocolate.
- Cold Brew with Vanilla Sweet
Cream: Starbucks slow steeped Cold Brew topped with a float of
house-made vanilla sweet cream.
- Nitro Cold Brew: Nitro Cold Brew
infuses our existing Cold Brew recipe with nitrogen to deliver a
smooth and creamy sweetness you can both see and taste. Available
in major cities across the U.S. later this summer, starting with
Seattle, Portland, New York, Chicago, Boston, Los Angeles, and San
Francisco.
- Traditional Iced Coffee: Freshly
brewed Starbucks® Iced Coffee Blend served chilled and lightly
sweetened over ice.
- Starbucks Doubleshot® on Ice:
Made with the rich, full-bodied espresso you love that’s been
chilled and mellowed with a touch of milk and lightly
sweetened.
- Caramel Iced Macchiato: We
combine our rich, full-bodied espresso with vanilla-flavored syrup,
milk and ice, then top it off with caramel drizzle for an
oh-so-sweet finish.
Recipes for cold coffee beverages are developed by Starbucks®
coffee and research teams, who taste hundreds of cups of coffee to
ensure the right blend, roast and brewing method in order to create
the perfect flavor profile. This process mirrors how Starbucks
teams create new and limited offering hot coffee and espresso
beverages, including the introduction of the Flat White in 2015
which drove sales growth of the Starbucks espresso category that
was higher than it had been in the three years prior to
introduction.
Starbucks ethically sources 99% of its coffee from more than
thirty countries around the world ranging from beloved favorites
like Pike Place® Roast to limited availability, small-lot coffees
sold exclusively as part of its high-premium Starbucks Reserve
brand.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to
ethically sourcing and roasting high-quality arabica coffee. Today,
with stores around the globe, the company is the premier roaster
and retailer of specialty coffee in the world. Through our
unwavering commitment to excellence and our guiding principles, we
bring the unique Starbucks Experience to life for every customer
through every cup.
Pike Place is a trademark of The Pike Place Market PDA, used
under license.
To share in the experience, please visit us in our stores or
online at www.starbucks.com.
*Industry experts include Mintel and Starbucks Consumer Insight
data
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version on businesswire.com: http://www.businesswire.com/news/home/20160531005250/en/
StarbucksInvestor Relations:Durga Doraisamy,
206-318-7118investorrelations@starbucks.comorMedia:Haley
Drage, 206-318-7100press@starbucks.com
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