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STARBUCKS

A BRAND EXTENSION CASE HISTORY: STARBUCKS

By Matteo Melani

From Millennials to seniors and adolescents... For years, Starbucks has been selling its own branded food and beverages, through large-scale global distribution, reaching customer groups that go beyond young consumers.

Starbucks Juice

The products that the famous chain of coffee shops distributes in supermarkets mainly consist of food stuffs and a beverage range, from coffee pods to refreshing drinks, which can be purchased by any type of consumer. Selling in supermarkets is a brand extension technique that, in addition to advertising its brand, allows Starbucks to acquire new customers. In fact, since many years Starbucks has opened its own branded coffee stores all over the world, catering to the preferences of an extremely wide audience: from office workers who want to have a coffee on their lunch break, to tourists who want to have a snack after visiting a museum. However, not all their products are distributed in every country where Starbucks is present. For example, last January in the US only, Starbucks launched a fruit juice line called Evolution Fresh in supermarkets and a small selection of health food stores. The only exception to this US campaign was last Christmas, when Evolution Fresh products were sold in supermarkets and hypermarkets around the world. In addition to these limitededition products, there are also those that can be found at any time of the year or can be ordered online. The growth in product sales in highstreets chains has prompted Starbucks to forge partnerships with several other brands. One such collaboration has been with Nestlè for the promotion of coffees that can be prepared at home such as Premium Insta Coffee, which has the same high quality 100% Arabica beans served in Starbucks coffee shops around the world. Starbucks’ strategy has proved to be effective both for regular customers, and for new clients.

WHAT’S NEW FROM LAST YEAR

Whether it is summer or winter, every season is perfect for Starbucks to offer new products. Last year alone it presented several lines of food products that filled supermarkets and hypermarkets shelves all over the world, such as refreshing fruit drinks (launched last summer in the UK) or pumpkin spice (sold in the fall in overseas markets). However, last Christmas was the moment when Starbucks implemented its brandextension strategy for branded stores and supermarkets around the world, experimenting with products never sold before. Between the end of November and the beginning of December 2020, it launched Starbucks Home, a limitededition line of packaged flavored coffees sold in physical stores. They included Starbucks Holiday Blend K-Cup pods (hazelnut flavored coffee pods), Peppermint Mocha Flavored K-Cup pods (mint chocolates), and Frappuccino Peppermint Mocha (cappuccino and chilli flavored

drink). So even if people had to give up going to coffee shops because of the restrictions, at least at Christmas they could consume Starbucks products in a different way. Another Christmas product sold in the EMEA region, was a collection of cups that change color according to the sensitivity of touch. ground coffee and Starbucks capsules. In just two years the products have reached 50 countries around the world, including Italy where coffee accompanies the most relaxing and convivial moments of the day. “The coffee ritual is a fundamental moment and in recent years there has been an ever-increasing attention to quality, new flavors and premium products. Starbucks® products are designed precisely to respond to a desire to approach new ways of understanding coffee, thanks to the combination of Nestlé’s experience and Starbucks® quality“- says Federica Braghi,

Business Executive Officer Nescafé & Nestlé Professional.

“With Starbucks®, Nescafé® and Nescafé® Dolce Gusto®, we offer customers the best choice of coffee and a complete home coffee drinking experience that meets everyone’s tastes with high quality 100% Arabica coffee, iconic roasts and different extraction methods”. The launch of these products for largescale distribution in Italy took place one year after the opening of the Starbucks store in Milan, the only Starbucks in Italy to date. In addition to coffee, the partnership between the two brands has allowed for the inclusion of additional ingredients in sachets, to prepare different types of drinks, such as Starbucks Cappuccino, Cafe Latte, Cafe Mocha, Caramel Latte, Vanilla Latte and Tea-based matcha (Japan exclusive).

NESTLE PARTNERSHIP

Given the success of Main Street Products, in 2018 Starbucks signed a new partnership agreement with Nestlè, to develop the Starbucks Premium Instant Coffee line, and other products compatible with Nespresso, Nescafè’s coffee machines, such as coffee beans,