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News and updates about the coffee market, coffee culture and trends, the art of coffee making and other topics related to coffee.
Curated by Kawateachoc
South Korea is a coffee-mad country, with one of the world’s highest consumption rates and one of the world’s highest rates of cafes per capita--nearly 15,000 coffee shops for a population of approximately 50,000,000. Now some of South Korea’s most successful coffee chains have set their sites on a new market: The United States...
With lemongrass rooftops and moss-covered walls, the coffee giant Starbucks is pushing into a new environmentally conscious yet technologically advanced direction. After the debut of a company-owned store a few months ago, Starbucks has once again embraced trees and greenery...
Watch out, Starbucks. While the Seattle-based coffee giant previously dominated and even threatened local brands with over 600 outlets in Korea, newcomer Caffe Bene has eclipsed that number with over 900 locations since first opening in 2008. Feeding on the global addiction to coffee, the Korean chain has an aggressive plan to open up 600 locations in the U.S. and expand to 10,000 locations worldwide by 2020...
The Israeli startup just launched in New York City, offering a $45 monthly subscription for unlimited coffee.
Each day, millions of customers flow through Starbucks stores in more than 60 countries. It has over 200 locations in Manhattan alone, which explains why it's hard to walk a few blocks in the city without seeing the green logo. But an Israeli startup that soft-launched in New York City last week just might be the David to Starbucks' Goliath...
Starbucks' (NASDAQ: SBUX ) enormous success prompted McDonald's (NYSE: MCD ) and Dunkin' Brands Group (NASDAQ: DNKN ) to enter the specialty coffee market. Now, its success serving tea and chocolate-based beverages is driving another wave of copycat beverages. Growing demand for tea and chocolate provides an opportunity for all three companies to increase beverage sales, but one company is positioned better than the other two.
Americans are going crazy for tea
U.S. demand for tea is soaring. According to the Tea Association of the USA, the size of the U.S. tea industry grew from a mere $1 billion in 1990 to $10 billion at present -- a 10.5% compound annual growth rate. The industry is expected to grow another 30% by 2017.
So it is no surprise that Starbucks, McDonald's, and Dunkin' Brands have eagerly rolled out their own teas. Starbucks owns two major tea brands: Tazo and Teavana. McDonald's serves iced tea and sweet tea. Dunkin' Donuts serves hot tea and iced tea in its stores and packaged tea through retailers.
Starbucks (NASDAQ: SBUX ) kicked off the new year this week with the launch of its first-ever line of VIA lattes. On Tuesday, Starbucks introduced a new Caramel Flan latte and a fresh line of Starbucks VIA Ready Brew lattes that are now available in Starbucks stores throughout the United States and Canada. Simply add water to Starbucks' new VIA Vanilla Latte and Caffe Mocha Latte packs and voila -- instant gratification. Perhaps more important, these new products underscore the wild success Starbucks has achieved with its VIA format.
A brief flashback
The java giant first launched the VIA platform of Ready Brew beverages at its U.S. stores in late 2009. By mid-2010, its VIA products had topped $100 million in global sales. By the start of 2011, VIA was the fifth-best-selling instant coffee brand by volume in the U.S., with more than 10% market share, according to AdAge.
Today, Starbucks is aggressively expanding both the product mix and distribution of its VIA platform. Its VIA Ready Brew products are now sold worldwide through a variety of channels outside of its 19,000 company-owned Starbucks locations, including grocery store chains, warehouse clubs, convenience stores, and U.S. food-service accounts...
For many shoppers this holiday season, the quickest and easiest gift to give someone is theStarbucks (NASDAQ: SBUX ) Gift Card. After all, we all love Starbucks, and a card says to that person, "treat yourself to a cup of coffee at Starbucks on me." This is one key advantage Starbucks has over competitors McDonald's (NYSE: MCD ) and Dunkin' Brands Group(NASDAQ: DNKN ) . If you give a gift card from McDonald's or Dunkin' Donuts, that person assumes you're saying, "treat yourself to a Big Mac or a dozen donuts and gain weight." It just doesn't have the same ring to it as a gift card for Starbucks. The Starbucks Gift Card is another example of why Starbucks is winning the coffee war against McDonald's and Dunkin' Donuts.
That's a lot of gift cards
Gift cards are a huge business worldwide. The National Retail Federation estimates that 80% of all shoppers will purchase a gift card this holiday season. Starbucks says that one out of every 10 Americans received a Starbucks gift card last holiday season.
Since the Starbucks gift card was launched 12 years ago, $16 billion has been uploaded to the cards. Last year alone accounted for nearly $4 billion of that amount. On the Thursday before Christmas last year, more than 2 million cards were sold in the U.S. and Canada. That's a rate of nearly 1,500 cards every minute. This year Starbucks expects to sell even more cards.
Only Starbucks could turn a gift card into a status symbol
Only Starbucks could get buyers to pay $450 for a Starbucks Gift Card. Starbucks partnered with Gilt.com and offered 1,000 limited edition rose-colored Starbucks Gift Cards that only came with $400 pre-loaded on the cards. The other $50 bought Starbucks Gold Status, which gets you a free drink or food item every 12 visits.
The amazing thing about this card is that it sold out within six seconds. You would think that this special card would be a waste of $50, but not to devoted Starbucks fans who also got a blue gift box with a letter inside explaining the card's value. For those who weren't lucky enough to purchase one of the 1,000 cards, one of the cards sold on eBay for $1,296.
The coffee wars continue
Both McDonald's and Dunkin' Donuts aim to challenge Starbucks for coffee supremacy. I say good luck to both companies, because they are going to need it. In the fourth quarter, Starbucks' global comparable-store sales grew 7% on the back of a 5% increase in store traffic. Earnings per share increased 37%, and the company opened 558 net new stores in the quarter.
Whenever we talk about coffee, Starbucks (NASDAQ:SBUX ) , Dunkin' Brands Group (NASDAQ: DNKN )and McDonald's (NYSE: MCD ) catch our attention. With more than a 50% gain year-to-date, Starbucks remained one of the top buys in the restaurant industry in 2013. Will the coffee giant continue to outperform its peers going forward as well? The answer is a "strong yes" and here are the two reasons.
In its fourth quarter of 2013, Starbucks reported earnings per share of $0.63, 37% more than its earnings of $0.46 per share a year earlier. Analysts at Thomson Reuters had expected the company to report earnings of $0.60 per share. In comparison with the last year, revenue also rose 13% to $3.8 billion.
Same-store sales grew by 7%, driven primarily by the company's biggest regions -- the U.S. and China, where comparable sales rose by 8%. The U.S. market is of foremost importance to Starbucks as it constitutes more than 75% of the company's business.
In the Asia-Pacific region, comparable-store sales rose 8%. This figure jumped 2% in Starbucks' Europe, Middle East, and Africa region.
Coffee consumption in the U.S. has been an integral part of our daily routine for decades, and today it’s a similarly big part of life around the world, from traditional coffee-drinking markets like Europe to emerging markets like Asia.
Consumed with meals and on its own, at home and on-the-go, coffee has in many ways become more than just a beverage—it’s an iconic product rich with brand values and important social and cultural associations. And that’s to say nothing of the caffeine...
Starbucks Predicts $120M Benefit from Falling Coffee Prices
International Business Times
Global coffee prices have plunged this year, and Starbucks Corp. (NASDAQ:SBUX) expects to see a positive impact of $110 - $120 million in 2014, according to a presentation made at the Morgan Stanley Consumer Conference on Tuesday.
Last year, they saw a $97 million benefit, after a loss of $206 million in fiscal 2012 thanks to a global draught and jump in prices that year. ..
Fort Mills Times Inside Starbucks' Risky Bet on Selling Food TIME With the recent acquisitions of Teavana, Evolution Fresh and La Boulange Café and Bakery, the Seattle-based coffee giant is aiming to expand its offerings and capture the midday and...