Starbucks Via: Instant "Soluble" Coffee Product Planned

NEW YORK — Starbucks Corp. said Thursday it will unveil a new instant coffee as part of its attempt to turn around sluggish sales and shed its reputation for pricey lattes.

The company has been working on the product for more than 20 years and has a patent pending on the technology that will allow it to "absolutely replicate the taste of Starbucks coffee in an instant form," spokesman Vivek Varma said in an e-mail to employees.

Varma said Starbucks will offer details of the new instant coffee, reportedly called Via, beginning next week. Samples will be arriving in stores on Wednesday, he said.

The company did not say when it will begin selling the coffee in its stores.

Chief Executive Howard Schultz is expected to formally announce the product on Tuesday in New York.

Starbucks has been looking to reposition itself away from its reputation as the purveyor of $4 fancy coffee drinks. It reported a big drop in U.S. same-store sales _ or sales at stores open at least a year _ in its fiscal first quarter at the end of January.

Earlier this week, Starbucks said it will begin offering value meal-like "breakfast pairings" for $3.95 to appeal to cost-conscious customers.

Comments

[learntofly]

If the market for US instant coffee sales is $17 Billion, this is prime market share for Starbucks to go after, especially in this market - IF they do it right. I would think that instant coffee would sell better at a grocery store. But if it is going to sell for about $1 per serving, it would be competing with Starbucks pre-packaged coffee there. If the quality is good like they say, they work on their price point, and offer it at general retail stores - I think it will go over ok. But I'm not driving specifically to a Starbucks store to buy instant coffee - It's not going to happen.

[MsIrisMG]

Gag! Is this what it's come down to for Starbucks...pretend coffee?! They've already started selling, well offering, tea in their stores. If I want the formaldehyde-laced powdered stuff, I'll have a Nescafe. Starbucks is over.

[Gary2]

Starbucks lost me after they started serving only Pikes Place in afternoon.­..narrowin­g options down to one not a good way to keep/build customers.

[hmargret]

Coffee suicide...­..Starbuck­s is dumber than dumb. guess they can't figure out how to do a "recession special line". instant will not play with the boomers and post-boomers. they've lost it.

[Robert Roy]

You can go to 7-11 and get fresh brewed coffee for a cheap price and it's good, and even better, is Quick check stores by a mug for $6 and you get a large coffee for less than a buck after that! Or brew your own at home! I like starbucks iced coffee once in a while during the summer. and Dunkin Donuts isn't that great to me anymore. With economy so crappy there is no need to spend on a brand name when you can get better coffee for less.

[swoosie1]

Hey, puts a new spin on the "stimulus"... and while we are at it, let's give 'em a bailout too. I love Starbucks.

[crayola 08]

who the hell drinks instant coffee??

[minimalist syntax]

Greeks do. They make it into an iced drink in the summer called a frappe. Take a heaping teaspoon instant coffee, some sugar and an ice cube or two and at most one ounce of water. Either thoroughly shake it up in a tupperware covered cup container or use an electric small drink mixer to mix it up. This will produce a good deal of foam. Pour that into a 10-12 oz cup (or else add more coffee if you want more fluid). Add milk or actually, evaporated milk (traditionally), if desired. Use a bendy straw-- it's traditional. It is a fantastic drink for summer and much cheaper than a Starbuck's Frappuccino.

[minimalist syntax]

Just to be clear, after the beaten mixture (about one ounce of coffee/wat­er/sugar/i­ce) is transferred to the 10-12 ounce cup, add sufficient water to fill up the cup. Then add milk if desired.

[crayola 08]

mmmm, i love starbucks frappucinos (the only starbucks drink i like actually) so i'll give that homemade brew of yours a try. thanks for the recipe :)

[oakley9]

Instant coffee tastes like instant coffee no matter what label is on it.

[bikerdude]

What's next, are they going to go into the used car business? How about mortgage lending?

[1manisland]

They couldn't do any worse then the current mortgage lenders have.

[4ablueocean]

Offering full benefits for employess averaging 20 hrs/week, I hope this helps keep the companys sales up. With Starbucks every place you go, it is giving a job with full benefits to just every place you go. Go Starbucks!

[1manisland]

Great comment. Not to mention giving these benefits keeps taxpayers from picking up the healthcare tab. For all the bitchin that goes on about Starbucks, there are tons of positive things they do. Most people who complain have never spent enough time in one. Also they would be quick to discover that coffee doesn't cost $5 - that's only a myth. How many naysayers have tried it since Pikes Place became an everyday brew that would appeal to many that are looking for decent cup of joe ?

My first Starbucks experience 18 years ago was horrible. It took me 14 years to give them a second chance and return. That was a great decision and have been happy with them since. Are they perfect? Nobody is. But I can find a lot to complain about Dunkin Donuts.

Instant Coffee sucks no matter who makes it. Bad Idea IMO !

[democratUSA]

Thank you for reminding people why they should fork over a little more $ for Starbucks and reward them for doing the right thing.

[candyc]

I love starbucks extra bold coffee. I drink it at Starbucks and grind it at home.I smuggle it into restaurants so I don't even have to taste their gross "coffee".

I think this is a great idea. I'll buy it and take it with me everywhere. No more disgusting brown water for me! I'll just order up a cup of boiling water and be happy. And I'll give a jar to my wilderness obsessed son to keep in his backpack.

Why anyone would WANT a business to fail is beyond my comprehension. Go Starbucks!

[bikerdude]

I don't particularly want them to fail, but to offer "growth solutions" that will lessen quality and do more to drive less customers to their stores is absurd. Perhaps they have saturated their market and need to hold their position. What somebody wrote here about Panera Bread makes me want to try them. Its been quite a while since I've been to Panera....Excellent food and beverages at a fair price with incentives (free refills), why not try it. Unfortunately, my experience at Starbucks on way more than one occasion is that their brew has a burnt taste and frankly gives me heartburn....

[shaaronie]

Walgreens offers a decent cup of coffee in it's new machines. All sizes just 99 cent up to 20 OZ. I love the chocolate lattes. Starbucks! Never again!

[NathaninSeattle]

There are so many things wrong with your posting that I do not know where to begin.

[lacitepq]

Thank you. I couldn't have said it better myself

[wyosky]

I think it's an example of a business responding to the times rather than just putting its head in the sand and hoping it blows over (most of the auto industry). If this is a way to make a better, less environmentally damaging cup of coffee by using so much less water, processing, etc.. then this is the kind of entrepreunship necessary to pull ourselves out of the situation we are in now. Innovation is what has historically done this. There is coffee grown in Hawaii. Make the jobs American by planting, harvesting and making the coffee here!

[jerrypl]

I enjoy Starbucks, but have noticed how different stores make the same drink differently. There is inconsistencies--so be it. Starbucks is looking for ways to keep their customer base stable and growing. I say, do whatever it takes.

http://eye-on-washington.blogspot.com

[ArthurTwoShedsJackson]

The notion that Starbucks is way more expensive than Dunkin Donuts is a myth. DDs is the Coors Light of coffee - VERY hot brown liquid. And never let them put milk or sugar in it for you - you will get a 1/4 cup of cream and two shovelfuls of sugar.

Starbucks' troubles began when they targeted DDs as their main competitor which was never true. Now Starbucks has too many loud, DD-like drive-thru stores, and blew a lot of dough on warm DD-clone breakfast sandwiches that did not increase sales volume.

Meanwhile it is Panera Bread that is tucking it to Starbucks. They just improved their coffee significantly, tastes much better (even before that dine-in customers get free refills), their baked goods and fresh hot breakfast sandwiches are excellent, they are packed for lunch every day, and they offer free wi fi and plenty of comfortable tables to enjoy it.

I like Starnucks but given a choice I'd go to Panera 90% of the time.

And this Starbucks instant coffee idea is indeed a desperate move.

[ArthurTwoShedsJackson]

Starbucks* :-}