Starbucks Coffee, At Not So Starry Price

Trends N Style

oi-Staff

Wednesday, March 3, 2010, 12:29

To be able to fight 'misperception about affordability', Starbucks has launched a new coffee that is priced at less than a dollar. The Starbucks' chief executive, Howard introduces the 'Via Brew instant coffee'. “The coffee consumption landscape is ripe for disruption. This is a big move for us, an opportunity to reinvent a category, create new rituals and grow our customer base," the Telegraph quoted Schultz, as saying.

The new coffee launch aims at reaching out to the 17 billion dollars global instant coffee market, that is mainly targeted to the travelers, campers, home coffee brewers and other coffee lovers. However, it is an open fact that the company is facing some tough times due to recession; it has faced multiple lay-offs and store closures. The Via will be introduced in selected market in the United States and London next month.

A trio of single-serve Via packets will sell for 2.95 dollars in the United States and 12 packets will be priced at 9.95 dollars. According to Schultz, Via's largest customer base is in the United States. Though the Starbucks' is not exceptionally popular in the US market, but it is credited to 40 percent of coffee sales out side United States.

Starbucks' will be facing some stiff competition from the US rivals who are doing quite well at the recession times. Brands likes such Nestle Sa''s Nescafe and Kraft Foods Inc''s Sanka are the tough competitors in the world market today.

The fast food giant, McDonalds has its Mc Cafe expresso drinks, while Panera Bread Co is rolling out new coffee and breakfast items, and plans to test steel-cut oatmeal after Starbucks' instant oatmeal found success.

Starbucks is a know brand that sells bags of ground coffee, drinks and some patented food items that are available in stores in Unites States and other selected overseas markets.

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