Starbucks launches instant coffee
Starbucks launches instant coffee
It seems to me that the Starbucks brand is in trouble. Within a four day period earlier this month, it announced layoffs, Value Meals and the launch of an instant coffee.
VIA, the new instant coffee 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. The national rollout of Starbucks VIA Ready Brew is planned to begin in late Fall 2009, with first availability on March 3 in the Seattle area and in Illinois Starbucks stores.
I have several issues with this: a dollar for a cup of instant cofee seems an extortionate price and single serving packs cannot possibly fit with Starbuck's Environmental Mission Statement which claims that it is "striving to buy, sell and use environmentally friendly products". But most importantly, what will instant coffee do to the Starbucks brand? If Starbucks is no longer the "Third Place" - and how can it be, as an instant cofee product is intended for use outside of its stores - then what is it?
An e-mail to staff to announce the launch provides a clue: Starbucks states that "the instant coffee market is a $17 billion global market and it offers us a significant opportunity as we launch this transformational product". It seems to me that in chasing sales by any means, Starbucks is running the risk of killing off its brand.
Monday, 23 February 2009 11:30