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After just recently announcing the closure of 600 stores in the U.S., coffee powerhouse Starbucks Corp. (NASDAQ: SBUX) will unveil protein smoothies and new iced beverages in some of its markets as early as next week. Starbucks hopes these protein drinks could help pump up sales and profits amid a downturn in its business due to the sluggish consumer economy in the U.S.When the company decided to drop its breakfast sandwich line because the offerings caused olfactory interference with its trademark roasted coffee smell, at least smoothies won't plug up customer nostrils, eh? Starbucks wants to find a replacement for the slow-selling Frappuccino line of ice-blended drinks in California and Florida. Together, those two states account for about a third of the chain's U.S. sales alone.
So, Starbucks is going after the non-coffee drinker with a premium-positioned product that most fast-food chains don't sell: the protein smoothie. Not that this is a dangerous move, but Starbucks is not the only one to sell smoothies these days. Jamba Juice (NASDAQ: JMBA) sells plenty of smoothies, and coffee competitor Dunkin' Donuts does as well. Starbucks will also offer a new cold-iced beverage that will be a low-calorie drink offered in fruit, dairy or yogurt-based flavors. However, with McDonald's Corp. (NYSE: MCD) also testing the smoothie offerings in some of its markets, Starbucks can't be given a pass here to these new products, certainly not as sort of overall savior for the company. If you're not a Starbucks fan, would you start going there just to purchase a smoothie?
Also see: Starbucks' Howard Schultz: Wake up, you're closing the wrong stores!
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Reader Comments (Page 2 of 2)
7-14-2008 @ 7:53PM
saspizda said...
Their espresso is always burnt! If they cared about the quality of their product maybe the stock would be higher? I'm not talking about the regular cup of joe, a monkey could do that. I'm talking about the drinks with espresso that are 5 bucks. People are not buying them because they are not making them properly. *News flash* espresso is supposed to taste sweet not like ash.
7-14-2008 @ 8:44PM
Chad said...
there's a difference between coffee and a latte. Everyone complaining about anything there over $2.50 is referring to the specialty drinks, not the coffee. a latte consists of steamed milk, espresso shots, and foam, not including what kind of flavor you get in it! If you decide you want one of those beverages, of course it's gonna cost more than a standard coffee because it has more in it. same goes for the frappucinos. lattes elsewhere are going to cost more than a coffee, as well. stop ignorantly referring to the specialty drinks at Starbucks as "coffee for $5." also, starbucks has many, many different types of coffees in their stores at all times, that are of different strengths other than what they would currently have brewing. find a bag on their display and ask for a french press of something you haven't tried before. Also, if the drink is too weak for you in specialty drinks, ask for less pumps of syrup(which isn't any extra charge). you're the customer so you get it how you want
7-15-2008 @ 10:05AM
Mike Greenberg said...
MixStirs was designed for the “Active Lifestyle on the Go”. Our “Stirs” as we like to call them, are made from real fruit and juice with no sugar added. We have a wide variety that will meet all of your needs ranging from the “Classic and Fruit Stirs” to the “Vitamin Powered Stirs” to the “Create Your Own Protein Power Stirs”. We have fruits from California and fruits from Brazil like the Acai Berry which has more than twice the antioxidants of blueberries and more than 30 times that of red wine. Our locations are primarily located in Health Clubs and Fitness Centers however we do have full service locations as well. Please check us out at www.mixstirs.com.