Starbucks to Seize Multi-Billion Dollar Cold Coffee Market
Company expects the category of cold coffee to double in the next three years
Starbucks Corporation 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 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.