Starbucks Nitro Cold Brew: A Product Well Managed

With summer months comes summer heat, and with summer heat comes the need for cold drinks. In order to boost sales during the hot summer months, Starbucks has introduced its Nitro Cold Brew, an iced coffee infused with nitrogen to give an added smoothy and creamy texture.

The new experimental Starbucks drink is currently being served in select stores in Seattle, but will be generally available in over 500 stores by the end of the summer. Some of the starting locations will include Portland, New York, Chicago, Boston, San Francisco and Los Angeles.

In the Starbucks newsroom we are met with interesting data which sheds added insight into why Starbucks is focusing more efforts on cold drinks. According to industry experts iced coffee consumption has grown by 75% in the past decade in the United States.

Starbucks Nitro Cold Brew – Emerging as a New Market:

While many other coffee shops have introduced a nitrogen infused coffee, Starbucks with its name recognition has the ability to make this drink a global trend. Whereas innovating is important in being an industry leader, Starbucks recognizes the potential in this upcoming and emerging market.

Creating Sales Amidst Turmoil

Traditionally summertime has meant less customers for coffee shops, the Nitro is just one of Starbucks cold drinks it will be introducing to ensure that instead of sales dropping, they will increase. Starbucks is adapting to seasonal trends and by doing so is able to increase revenues in a seemingly untraditional time.

My question for Starbucks is: With higher coffee prices, how does Starbucks intend to beat out competitors selling similar products and more affordable prices?

Mark is the Lead Author & Editor of Spectechular Blog. Mark established the Spectechular blog to create a source for news and discussion about some of the issues, challenges, news, and ideas relating to Product Management.