Starbucks Via Ready Brew is 100% natural roasted coffee, made without preservatives. In developing Starbucks Via Ready Brew, Starbucks developed a proprietary, patent-pending technology to preserve the coffee’s taste, quality and freshness.
“We have worked for nearly 20 years to develop an instant coffee that offers customers the quality and taste they expect from fresh-brewed Starbucks coffee, and a unique and convenient way for them to enjoy it,” said Starbucks chairman, president and CEO, Howard Schultz. “This is a big move for us. The opportunity to reinvent a category, create new rituals and grow our customer base is substantial.”
According to Starbucks, global instant coffee represents 40% of coffee sales, which translates into a $17bn (and growing) market. Instant coffee sales represent the majority of coffee sales overall in many international markets where Starbucks already has a strong brand presence. For example, in the UK, 81% of coffee sold is instant. In Japan, that figure is 63%. Together, these two markets account for more than $4bn in instant coffee retail sales. Even in the US, instant coffee is a $700m market.
In the US, 66 billion cups of coffee are consumed each year, with 75% brewed at home, and the remainder consumed on the go (at the office or travelling) or away from home (coffee houses). Starbucks’ share of US at-home coffee consumption is less than 4%.
“The coffee consumption landscape is ripe for disruption,” added Schultz. “We’re pleased to have the right product at the right time to take advantage of this opportunity, and will look to learn from customers, experiment with other form factors and consider new sources of revenue for other lines of business.”
Starbucks Via Ready Brew is made by adding hot (or cold) water to a cup, which brews the coffee in an instant. The product is pre-portioned into single-serve packets and will be packaged in books of three or boxes of 12. The suggested retail price for the US will be $2.95 for three and $9.95 for 12, making a cup of Starbucks coffee less than a dollar.
The national roll-out of Starbucks Via Ready Brew is planned to begin in the autumn of 2009, with first availability on 3 March in the Seattle area and in Illinois Starbucks stores.
On 25 March, select Starbucks stores in London will offer the product. For those in the US who would like to pre-order their product, Starbucks Via Ready Brew will be available exclusively online.
Source: Starbucks
© FoodBev Media Ltd 2024