Starbucks Expands Presence in $377 Million Flavored Coffee Market in the U.S. with New Natural Flavors

Published on Monday, 30 August 2010 07:08 Written by TradersHuddle Staff

SEATTLE-( Business Wire )-

Starbucks (NASDAQ:SBUX) announced today the next step in building the instant coffee category with the introduction of Starbucks VIA® Flavored Coffee in U.S. and Canada stores this fall. Just one year since the launch, the Starbucks VIA® Ready Brew portfolio will now include four natural flavors—Vanilla, Mocha, Caramel and Cinnamon Spice. Starbucks is the first nationally branded flavored coffee in the U.S. to use only natural flavors and other natural ingredients and currently offers Starbucks® Natural Fusions, a line of naturally flavored ground coffees, at select grocery stores in the U.S.

“We know 60 percent of our customers drink coffee with flavor, and now they will have access to high-quality arabica coffees with natural flavors as only Starbucks can deliver,” said Annie Young-Scrivner, Starbucks chief marketing officer. “The launch of Starbucks VIA® Flavored Coffees demonstrates our drive to inject innovation into the coffee category, deliver products our customers are looking for, and allows us to grow the business globally.”

Starbucks spent years looking for high-quality natural ingredients to combine with natural flavorings and our arabica coffee to get the perfect cup of coffee. The introduction of these two distinctively different natural flavored coffee lines, instant and ground, is part of Starbucks overall business strategy to grow its consumer products and retail businesses. With approximately 11 percent of American households purchasing flavored coffees, Starbucks is entering the $377 million flavored coffee market in the U.S.* Having two forms of flavored coffee, instant and ground, in different distribution channels meets the variety of ways customers drink their coffee—whether it is at home or on-the-go.

Starbucks VIA® Flavored Coffee

Beginning this fall, Starbucks will introduce four flavors to the Starbucks VIA® line. These delicious and aromatic blends are inspired by some of Starbucks most popular beverage flavors: Vanilla, Mocha, Caramel and Cinnamon Spice. Each packet makes a wonderfully balanced cup of coffee and is ideal for life-on-the-go. Starbucks VIA® Flavored Coffee is a blend of 100 percent arabica instant coffee and rich flavors, and is sweetened with natural cane sugar.

Innovating Starbucks VIA® Ready Brew and expanding the product line beyond the initial Italian Roast and Colombia coffees and into new channels remains a priority for Starbucks. Within one year, Starbucks has launched four Starbucks VIA® products in the portfolio and expanded beyond the U.S. to Canada, the U.K. and Japan, and in mid-September to the Philippines. The Starbucks VIA® portfolio now includes Starbucks VIA® Ready Brew Decaffeinated Italian Roast, launched last November, and Starbucks VIA® Iced Coffee, launched in July. Starbucks VIA® Ready Brew is available in more than 37,000 points of distribution in the U.S. including Starbucks stores; food, drug and mass merchandiser stores; foodservice accounts; and through e-commerce.

Starbucks® Natural Fusions

Starbucks® Natural Fusions ground coffee is the industry’s first and only nationally-branded, naturally-flavored premium coffee made with real ingredients such as vanilla, orange peel, and cinnamon ground and blended with the coffee. Starbucks® Natural Fusions is made with high-quality arabica coffee beans perfectly blended and specifically roasted to complement each flavor. The new coffees, in Vanilla, Caramel, and Cinnamon, are available in 11 oz. packages for the suggested retail price of $8.99 in select grocery stores in the U.S. such as Target, Walmart, Safeway and Publix.

About Starbucks Corporation

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting the highest-quality arabica coffee in the world. Today, with stores around the globe, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at www.starbucks.com.

*Source: AC Nielsen 2009--$377 million accounts for whole bean, ground and instant flavored coffees, does not include Walmart or club sales.

Starbucks Coffee CompanySanja Gould, 206-318-7100press@starbucks.comorEdelman Public RelationsEmily Killoren, This e-mail address is being protected from spambots. You need JavaScript enabled to view it.