SEATTLE -- Starbucks Corp. plans to unveil two new drinks as it tries to combat the decline in the number of customers visiting its U.S. stores, reported The New York Times. This summer, the coffee retailer will add a line of smoothie-like drinks made with fresh fruit and whey powder throughout its U.S. locations. Starbucks says they are the first stage of a broader push into healthier drink and food offerings.
"It's also what we believe to be a huge differentiator," Rob Grady, Starbucks' vice president of beverage, told the newspaper. "You cannot get [them] from any fast-food establishment." [image-nocss] The flavors Starbucks has developed include chocolate banana and orange mango.
The company also will begin selling a more-indulgent sweet, icy beverage developed with an Italian company, said the report. That drink will only be sold in select markets, including Southern California.
Part of the strategy is to price the drink affordably to appeal to customers who have cut back on spending because of the weak economy and collapse in housing prices.
Starbucks would not disclose the name or price of either drink or the Italian company that makes the sweet, icy beverage. That drink tastes different than Starbucks' Frappuccino in that it contains separate layers of flavor, such as a creamy layer with a fruity layer. "They're visually beautiful," Howard Schultz, Starbucks' chairman and CEO, told the paper.
The drink is going from being an idea at headquarters to the menu in just a few months, far faster than previous new products. That reflects Schultz's desire to lessen the time it takes to execute ideas.
Both drinks could help Starbucks move beyond the Frappuccino, the ice-blended drink that allowed it to expand beyond coffee drinks in the 1990s. In recent years, the Frappuccino has been less effective at driving summer sales, the report said, in part because competitors copied it.
Separately, Starbucks announced the beginning of the rollout of AT&T Wi-Fi service at company-operated Starbucks stores, kicking off a nationwide effort that will continue through 2008. Also, as of May 1, qualifying AT&T high-speed Internet and Wi-Fi customers will have complimentary Wi-Fi access at more than 7,000 Starbucks locations nationwide.
As of May 1, qualifying AT&T customers can connect to the Internet from Wi-Fi enabled company-operated Starbucks locations nationwide by simply selecting "ATTWiFi" after powering up their computers. Free AT&T Wi-Fi service is currently offered with AT&T's three higher-speed residential broadband packages, all small-business broadband packages and with all AT&T U-verseSM offerings with high speed Internet service.
For other customers, AT&T Wi-Fi service will reach company-operated Starbucks locations on a market-by-market basis throughout the year. The experience will include a mix of free and paid connection options for both frequent and occasional Wi-Fi users and qualifying Starbucks customers. Once AT&T Wi-Fi service is available, customers will be able to shop and surf both Starbucks' and AT&T's respective home pages for products and services.
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