Starbucks Corp. on Tuesday announced plans to double down on its cold-coffee platform.
The Seattle-based chain said that it is launching Nitro Cold Brew coffee on tap in units across the U.S., which will become part of a new “cold bar” platform of cold coffee and espresso drinks.
The move builds on the chain’s rollout last year of cold-brew coffee, a slow-steeped version that produces what is described as a smoother, more flavorful beverage.
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This week, Starbucks rolled out a new Vanilla Sweet Cream Cold Brew, featuring the slow-steeped cold-brew coffee topped with housemade vanilla sweet cream, as well as a Doubleshot on Ice, made with chilled espresso mellowed with a touch of milk and lightly sweetened.
Nitro Brew, which will be available in Seattle, Portland, New York, Chicago, Boston, Los Angeles and San Francisco this summer, uses cold-brew coffee infused with nitrogen through a draft faucet to give it a creamy head, almost like a Guinness beer.
“For over 40 years, we have perfected the craft of roasting and brewing the finest hot coffee, and while we have always offered our customers new options in cold coffee, nothing will compare to the pace of flavor, craft and brewing innovation we will see in the next few years,” said Howard Schultz, Starbucks chairman and CEO, in a statement. “The opportunity to create an entirely new cold coffee experience is limitless and our customers are already telling us that they want to meet us on this journey as cold coffee is now becoming a go-to drink.”
Starbucks executives predict that the cold-coffee category will double over the next three years.
Across the U.S., iced coffee consumption has grown by 75 percent over the past decade, and cold-brew sales grew nearly 339 percent between 2010 and 2015, Starbucks said, citing Mintel data, along with in-house consumer insights.
In Starbucks’ fourth quarter, the chain reported a 20-percent increase in the overall iced portfolio following the introduction of cold brew.
Nitro brew is the second best-selling drink at Starbucks Reserve Roastery and Tasting Room in Seattle, the chain’s flagship unit highlighting premium offerings.
The creamy drink has been appearing on a growing number of restaurant menus as competition for the cold-coffee consumer increases.
Caribou Coffee began testing Nitro Brew last year. Longtime cold-brew provider Peet’s Coffee & Tea recently introduced the Coconut Black Tie, featuring cold-brew coffee sweetened with coconut, condensed milk and cream.
Chick-fil-A earlier this year rolled out Frosted Coffee made with cold-brewed coffee and vanilla Icedream, an ice cream-like dairy product.
Dunkin’ Donuts, meanwhile, last week introduced iced coffees flavored with the candy bars Heath and Almond Joy.
Starbucks earlier this year also introduced a Caramel Iced Macchiato, with espresso sweetened with vanilla syrup, milk and ice, topped with a caramel drizzle.
The chain’s traditional iced coffee, chilled and lightly sweetened, also remains on the menu.
Contact Lisa Jennings at [email protected]
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