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Posts with tag PikesPlaceRoast

Starbucks' (SBUX) new coffee stirs debate

Starbucks (NASDAQ: SBUX) recently began very wide distribution of Pike Place Roast. It tastes more like the coffee most people brew at home. It is inexpensive. It has drawn new customers to the coffee retailer.

And some people think it tastes like sewage.

According to The Wall Street Journal, "the new strategy, which played down the company's more-established robust roasts, has touched off a debate about what customers think Starbucks should stand for: bold coffee for connoisseurs or a tamer brew for the masses?"

Starbucks founder Howard Schultz has been concerned about bringing the company back to it roots, the look and intimate feel of the company's early stores, but the new drink seems to run counter to that.

The Pikes Place product says much about what is wrong with Starbucks. Its appeal has been the originality of its products, but it needs coffee that will help its sales, which have been weak, grow again. Starbucks seems to be of two minds, which is never good for a company working on turning itself around.

With the economy in the dumps, what Starbucks does may not matter for now. Traffic is being hurt by consumer spending. The shares in the company are way down. Pike Place is just another cup of coffee.

Douglas A. McIntyre is an editor at 247wallst.com.

Bloggingstockcast: Starbucks focuses on what matters - coffee

When your business is struggling with the competition and your stock price down, it's time to focus on the fundamentals that got you the leg up when you first started. At least that's what Starbucks (NASDAQ: SBUX) seems to be thinking these days. Click below for video.

Interested in maybe hearing your voice on the BloggingStockCast? Leave a comment for the show by calling 567-226-4583 and leaving a message!

(I apologize for the temporarily wrong number on the video, the phone number handling the video there died! I'll get it right with tomorrow's BloggingStockCast -Tobias)

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Last updated: December 04, 2008: 10:32 PM

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