Starbucks to Seize Multi-Billion Dollar Cold Coffee Market
On 8/16/2016 the name Starbucks Cold Brew changed to Starbucks Nariño 70 Cold Brew.
Starbucks 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
SEATTLE (May 31, 2016) – Starbucks Corporation (NASDAQ: SBUX) today announced a new lineup 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 40 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 Howard Schultz, Starbucks chairman and ceo. “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 percent increase in the 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. U.S. iced coffee consumption has grown by 75 percent in the past decade and cold brew sales grew 338.9 percent between 2010 and 2015, according to industry experts.*
Just in time for summer, this expanded core cold bar menu available in participating stores in U.S. and Canada will now include:
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 percent of its coffee from more than 30 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.
*Industry experts include Mintel and Starbucks Consumer Insight data