Starbucks rolls out Via nationwide with major marketing blitz

Judging by the size of the marketing blitz accompanying Via's nationwide launch, Starbucks has high hopes for the powdered coffee product. The chain is actually taking to TV airwaves with commercials promoting its "taste challenge," which is taking place Oct. 2 through Oct. 5. (Customers can stop into a local Starbucks and test their palate by trying to discern a fresh-brewed cup of Pike's Place roast from a fresh-mixed cup of Via.)

And your local Starbucks isn't the only spot where you can pick up a packet of Via. United Airlines is offering free packets of the java mix to all customers on domestic flights exceeding two hours, and the brew will also appear on store shelves at Target (NYSE: TGT) and Costco Wholesale (NASDAQ: COST).

While Starbucks is clearly excited about the prospects for Via, the company has yet to predict any sales results. However, Schultz has stated that sales of the product in test markets have "exceeded expectations" (WSJ subscription required). It would be fair to say that Starbucks is in relatively dire need of a sales-booster, since most of its recent earnings surprises have been achieved through aggressive cost cuts.

Nevertheless, investors don't have much to complain about right now. After a lengthy period of underperformance, SBUX has blazed a steady path higher on the charts since last November. The stock is currently enjoying the solid support of its 10-week and 20-week moving average, which are helping the shares push through round-number pressure in the $20 region.

Elizabeth Harrow is an analyst and financial writer in the research department at Schaeffer's Investment Research. She is featured in the video series Schaeffer's Daily Q&A on SchaeffersResearch.com.