What is in this article?:
- Starbucks targets drive thrus for U.S. growth
- Strong holiday season boosts revenue
- Company eyes more growth channels
The company reported a 13-percent increase in profit for the first quarter driven by the strongest holiday season in its 42-year history.
Company eyes more growth channels
Following the acquisition of the La Boulange Bakery brand last year, Starbucks has been testing a new bakery menu in 40 San Francisco locations.
Schultz said those units have seen increases in sales of pastries and food overall. The La Boulange menu will be rolled out to more Starbucks locations in the Bay Area, as well as Seattle, Los Angeles, Chicago and New York before the end of the year.
The company also plans to build on its single-cup business, including the sale of new Verismo single-cup brewers launched in September. Starbucks has sold 150,000 machines so far.
Schultz described Verismo as a platform with “multi-billion dollar potential” that will include new pod products and more machine variations with different functionalities and styles.
The home brewers have not cannibalized in-store sales or other packaged coffee products, he said, and the company plans to continue to “transform the single-serve category.”
Starbucks is also planning a new line of iced coffee beverages in “iconic” glass bottles that will be available nationally by April, in partnership with PepsiCo.
Starbucks president of channel development and emerging brands Jeff Hansberry said one in five beverages purchased in the brand’s units is iced coffee. “People drink iced coffee now year round,” he said.
Contact Lisa Jennings at lisa.jennings@penton.com.
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