Starbucks (NASDAQ: SBUX) plans to come out with new premium drinks this summer. One will be a fruit smoothie and another a sugar-based drink created by a company in Italy. According to The Wall Street Journal, "Starbucks says they're the first stage of a broader push into healthier drink and food offerings."
The new products are not likely to help the coffee retailer much. Smoothies and Italian ice drinks are available at a large number of shops, even Baskin Robbins. Starbucks does nothing to differentiate itself by coming to market with products that are easy to come by elsewhere. It is also a move away from its core coffee franchise.
The other issue with the new drinks is that Starbucks stores already sell scores of items. When custom ingredients are put together with the regular drink menu, most stores offer dozens of drinks. The stores also sell ground coffee and coffee makers. Add to that donuts, muffins and other food. Starbucks will also sell anyone who comes through the door music and DVDs.
Those new drinks are not likely to stand out.
Douglas A. McIntyre is an editor at 247wallst.com an author of the Ten Stocks Under $10 Newsletter.
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Reader Comments (Page 1 of 1)
4-30-2008 @ 10:34AM
Jeff said...
it's a glass is half empty kinda day, Doug?
5-01-2008 @ 3:26PM
Iwanna Freebie said...
Starbuck's could be a little more customer-friendly, and bring in a LOT more business if they weren't so greedy when it comes to wi-fi on their "hotspots." Why in the world would I want to pay in the neighborhood of $20/mo. to "T-Maybe" just for the honor of using wi-fi at Starbuck's, when you can get it for FREE most anywhere else around? Much of their competition has it free, because it MORE THAN PAYS FOR ITSELF with the customers it brings in. I never go to Starbuck's anymore, now that I can go to several of its competitors and get it for free. Heck! I can even sit on a parkbench and get free wi-fi! Why would I go PAY for it? Get with the program, Starbuck's!!