Starbucks to Seize Multi-Billion Dollar Cold Coffee Market

Starbucks Corporation (NASDAQ: SBUX) today announced a new line-up of cold beverages that will become the foundation for a new “cold bar” of coffee and espresso products. This new menu focused exclusively on the portfolio of cold coffee affirms the company’s ongoing investment in the category of iced beverages coming off of the highly successful, nationwide launch of Cold Brew last year in all company-owned U.S. stores. In addition to bringing handcrafted vanilla flavor to Cold Brew coffee, Starbucks will also debut a handcrafted Starbucks Doubleshot® on Ice espresso beverage and introduce Nitro Cold Brew in select cities.

“For over forty years we have perfected the craft of roasting and brewing the finest hot coffee and while we have always offered our customers new options in cold coffee, nothing will compare to the pace of flavor, craft and brewing innovation we will see in the next few years,” said Starbucks chairman and ceo, Howard Schultz. “The opportunity to create an entirely new cold coffee experience is limitless and our customers are already telling us that they want to meet us on this journey as cold coffee is now becoming a go-to drink.”

In Q4 FY15, Starbucks reported a 20% increase in their overall iced portfolio after the introduction of Cold Brew in its retail stores and Nitro Cold Brew is currently the second highest selling beverage at the Starbucks Reserve® Roastery and Tasting Room in Seattle. According to industry experts*, U.S. iced coffee consumption has grown by 75% in the past decade and Cold Brew sales grew 338.9% between 2010 and 2015.

Just in time for summer, this expanded core “cold bar” menu available in participating stores in U.S. and Canada will now include:

  • Cold Brew: Handcrafted to be cold from thoughtfully selected beans, slow steeped for 20 hours, creating a balanced and smooth Cold Brew coffee with hints of citrus and chocolate.
  • Cold Brew with Vanilla Sweet Cream: Starbucks slow steeped Cold Brew topped with a float of house-made vanilla sweet cream.
  • Nitro Cold Brew: Nitro Cold Brew infuses our existing Cold Brew recipe with nitrogen to deliver a smooth and creamy sweetness you can both see and taste. Available in major cities across the U.S. later this summer, starting with Seattle, Portland, New York, Chicago, Boston, Los Angeles, and San Francisco.
  • Traditional Iced Coffee: Freshly brewed Starbucks® Iced Coffee Blend served chilled and lightly sweetened over ice.
  • Starbucks Doubleshot® on Ice: Made with the rich, full-bodied espresso you love that’s been chilled and mellowed with a touch of milk and lightly sweetened.
  • Caramel Iced Macchiato: We combine our rich, full-bodied espresso with vanilla-flavored syrup, milk and ice, then top it off with caramel drizzle for an oh-so-sweet finish.

Recipes for cold coffee beverages are developed by Starbucks® coffee and research teams, who taste hundreds of cups of coffee to ensure the right blend, roast and brewing method in order to create the perfect flavor profile. This process mirrors how Starbucks teams create new and limited offering hot coffee and espresso beverages, including the introduction of the Flat White in 2015 which drove sales growth of the Starbucks espresso category that was higher than it had been in the three years prior to introduction.

Starbucks ethically sources 99% of its coffee from more than thirty countries around the world ranging from beloved favorites like Pike Place® Roast to limited availability, small-lot coffees sold exclusively as part of its high-premium Starbucks Reserve brand.

About Starbucks

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. 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.

Pike Place is a trademark of The Pike Place Market PDA, used under license.

To share in the experience, please visit us in our stores or online at www.starbucks.com.

*Industry experts include Mintel and Starbucks Consumer Insight data

Contacts:

Starbucks
Investor Relations:
Durga Doraisamy, 206-318-7118
investorrelations@starbucks.com
or
Media:
Haley Drage, 206-318-7100
press@starbucks.com

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