Starbucks and PepsiCo Bring Nitro Cold Brew to the Grocery Aisle and Convenience Stores
February 26 2020 - 9:00AM
Business Wire
After expanding Nitro Cold Brew availability to
U.S. Starbucks stores nationwide last summer, the brand is bringing
the velvety smooth taste of Nitro Cold Brew to scale in a new
ready-to-drink format
Starbucks (Nasdaq: SBUX) and PepsiCo today announced the launch
of new Ready-To-Drink (RTD) Starbucks® Nitro Cold Brew, entering a
high growth segment of the RTD Cold Brew category. This is the
latest product to join the ranks of successful innovations
developed since Starbucks and PepsiCo formed the North American
Coffee Partnership (NACP) in 1994, which includes Bottled Cold
Brew, Bottled Frappuccino® chilled coffee drink, Starbucks
Tripleshot® beverages, Starbucks Doubleshot® beverages, Multi-Serve
Iced Coffee and more. Over the past 25+ years, the NACP has grown
to more than $2 billion in retail sales, and Starbucks is the
leader in the RTD coffee category with 82 percent share.
“Through the NACP, Starbucks and PepsiCo created the RTD Coffee
category 25 years ago and have consistently delivered leading
innovation to our consumers,” said Nik Dhodi, Starbucks senior
director, brand management. “To build on the success of Starbucks
Nitro Cold Brew in our retail cafes and meet the evolving needs of
consumers in the category, we are excited to launch a line of RTD
Starbucks Nitro Cold Brew beverages to expand the reach to even
more people.”
While RTD Nitro Cold Brew isn’t new to the marketplace,
Starbucks is one of the only coffee companies to bring it to scale,
and the brand sees a great opportunity to further expand the RTD
Nitro Cold Brew market that is growing at a rate of almost 40% per
year.
RTD Starbucks Nitro Cold Brew arrives on the heels of the
popular Nitro Cold Brew in Starbucks stores, representing
customer-centric innovation for Starbucks. The brand first
introduced Nitro Cold Brew at Starbucks Reserve® Roastery in
Seattle in July 2015, and due to popularity, Nitro Cold Brew scaled
to 500 U.S. stores less than one year later. Last year, Starbucks
reached national availability of Nitro Cold Brew in U.S. company
operated stores.
The new product is available in three flavors, two of which are
inspired by handcrafted beverages served at Starbucks stores:
Black, Vanilla Sweet Cream and Dark Caramel. The Cold Brew is
infused with nitrogen, and the moment the can is opened a rush of
microbubbles delivers a delicious, velvety smooth taste. It can be
found nationwide for a suggested retail price of $3.99 at
convenience locations and $3.49 in grocery.
The NACP has more café favorites available in RTD format,
including the new Starbucks Iced Latte Caramel Macchiato that
brings the fan-favorite flavor available in cafés since 1996 to
your home or on-the-go. The NACP has also introduced new flavors to
various existing product platforms this year, including: Starbucks
Frappuccino Brown Butter Caramel with a Splash of Cold Brew,
Starbucks Iced Espresso Classics White Chocolate Mocha, Starbucks
Tripleshot™ Energy Dark Roast, Starbucks Doubleshot Espresso
Americano, Starbucks Medium Roast Subtly Sweet Iced Coffee, and 40
oz. Starbucks Cold Brew Black.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to
ethically sourcing and roasting high-quality arabica coffee. Today,
with more than 30,000 stores around the globe, Starbucks 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. To share in the experience,
please visit us in our stores or online at stories.starbucks.com
and www.starbucks.com.
About PepsiCo
PepsiCo products are enjoyed by consumers more than one billion
times a day in more than 200 countries and territories around the
world. PepsiCo generated more than $67 billion in net revenue in
2019, driven by a complementary food and beverage portfolio that
includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana.
PepsiCo's product portfolio includes a wide range of enjoyable
foods and beverages, including 23 brands that generate more than $1
billion each in estimated annual retail sales.
Guiding PepsiCo is our vision to Be the Global Leader in
Convenient Foods and Beverages by Winning with Purpose. "Winning
with Purpose" reflects our ambition to win sustainably in the
marketplace and embed purpose into all aspects of the business. For
more information, visit www.pepsico.com.
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