Watch out Jamba Juice, Starbucks is coming for you. CEO Howard Schultz announced yesterday that the company would “make our first significant step forward into this category with the introduction of a Health and Wellness beverage platform.” That’s CEO for “We’re gonna make smoothies.”
Through our extensive research and development, we believe we have hit the mark with the protein and fruit-blended beverage we have developed, which is made from simple ingredients that provide the benefit of sustained energy that our customers want.This new beverage will initially be available in two flavors and will include fresh fruit and a proprietary whey protein, with no artificial sweeteners, delivering 15 or more grams of protein with no more than 270 calories.
Schultz also hinted at some new secret “Italian” beverage:
On a recent trip to Italy, we found a unique beverage platform that we believe to be a perfect complement to our overall beverage business. This exclusive, proprietary opportunity was developed through a partnership with our Italian supplier and represents a brand new category of beverage, which is both refreshing, low calorie, and indulgent at the same time. It offers a unique frozen, smooth texture, distinctive taste profiles and options ranging from fruit-based to dairy-based to yogurt-based ingredients…And we believe customer acceptance of this new distinctive beverage category will create a new demand, drive incremental traffic to our stores much like Frappuccino did 10 years ago.
Wall Street doesn’t seem to be too thrilled with the idea of Starbucks entering into the smoothie territory currently dominated by Jamba Juice. Portfolio says:
So even if Starbucks rolled out literally the best smoothies available in America, wiping Jamba Juice off the face of the earth and converting every last one of their customers, that would still increase revenue by just 11 percent. And the reality, of course, will be far more modest.
Not only is the impact of the new beverages likely to be minimal, but they also seem at odds with C.E.O. Howard Schultz’s stated intention to bring the focus at Starbucks back to coffee.
The labor intensity of making the drinks, the added blender noise, and the new task of sourcing fruit all add up to distractions from that core concern.
Will you buy a Starbucks smoothie?
No Smoothie Sailing For Starbucks [Portfolio]
Starbucks F2Q08 (Qtr End 3/30/08) Earnings Call Transcript [Seeking Alpha]
(Photo: artnchicken )
More From Consumerist
-
Starbucks Thinks You Want An Entire Store Of Tazo Tea
-
Why Should Starbucks Give You A Loyalty Discount? You’re Already Addicted
-
Starbucks To Gold Card Customers: Sorry, We're Not Paying For Your Lactose Intolerance Anymore
-
Sold-Out $450 Starbucks Steel Gift Cards Now Going For Up To $5,000 On eBay
-
Starbucks Barista Offers Would-Be Robber Free Coffee Instead Of Cash: Robber Accepts
@RandomZero: I used to get something like this in my hometown growing up. They were called by the extremely exotic title “Slush Puppies”.
ugh, what is wrong with you Howard? I work at Starbucks and we’re introducing Energy Drink options to the espresso beverages and now smoothies? Howard came back to the company to bring a focus back on coffee and to bring things financially back in line. He discontinued the cream frappuccino light base, organic milk, and almond syrup to save money. Now he wants to find more ways for the company to waste money? 80% of the drinks ordered at my location are Frappuccinos, I don’t need to have to devote even more time at the blender with smoothies with a Haagan Daz right by my location.
I don’t even drink coffee at Starbucks…
I might get an iced tea on average of about once a month. If that. Now my kids, I think they’re up to once a week. And they aren’t 18 yet. (7 more days…)
There are only a few Roasts that SBUX offers that taste remotely burnt. Those would be the Komodo Dragon, and pretty much all the other “Extra Bold” roasts. But the Pikes Place has bold overtones but a mild roast. I personally like the brew, and only pretentious idiots who like to ride cliche propaganda-like bandwagons against successful corporations will say the blanket statement “…all Starbucks coffee tastes burnt!”
Maybe if your palate was accustomed to actual coffee instead of that dirt Folgers or what not, you’d understand not only why 20oz. of coffee is $2.09 but why Starbucks IS the premium purveyor of coffee, world wide.
And the smoothies… I’ve experimented with the NAKED drinks at my SBUX and came up with some pretty tasty bevs.
Italian Ice will probably be a bitch to make.
Why pay over the odds for sugary smoothies that may not even be that healthy? Make your own smoothies!.