CSP Magazine

CSP Kitchen: Milking Profits

Nondairy products becoming coffeehouse necessities

For years, Starbucks publicly said that it wouldn’t add nut milk or other dairy alternative to its cafes. After all, the coffee giant already offered soy milk for those with dairy allergies.

But things changed in February when the Seattle-based chain heard and responded to its fans’ call for another option: coconut milk. “Providing an alternative to dairy [milk] and soy is the all-time second most requested idea from mystarbucksideas.com; more than 84,000 people voted for this idea,” says Erin Jane Schaeffer, communications manager for Starbucks.

But adding an alternate milk isn’t as easy as slapping it on the menu as a simple substitution.

“All milks froth slightly differently,” says Schaeffer. Starbucks allowed time to develop and hone recipes and methods for frothing coconut milk before offering it in stores, she says.

When Dunkin’ Donuts wanted to expand its nondairy options, it couldn’t overlook a stat it had heard from a supplier: “Almond milk has become a more popular nondairy option than soy, based on U.S. sales,” says Chris Fuqua, vice president of brand marketing for Dunkin’ Donuts.

So the Canton, Mass.-based operator added it to 75% of its stores nationwide last September, coinciding with the brand’s expansion onto the West Coast.

The popularity of more expensive nondairy milk options can help operators manage the bottom line. “Almond milk costs more than whole milk, skim milk and cream, so most locations charge guests to add it to their beverage,” though Dunkin’ leaves pricing decisions to franchisees, says Fuqua. Starbucks charges guests an additional 60 cents to add coconut milk, as it does with soy. And so far, people are paying.

While safety is a concern, operators seem to rely on guests with nut allergies to self-monitor. “Guests with tree-nut allergies or sensitivities should be advised not to choose [almond milk],” says Fuqua. That’s part of the reason Starbucks went with coconut milk over other nondairy options: lower risk.

“Starbucks is unable to guarantee an allergen-free environment in our retail locations due to the potential for cross-contact, so … we did consider the potential for allergens with tree-nut milks,” says Schaeffer.

Showing an excess of caution, Starbucks prepares coconut milk in nondairy pitchers separate from the soy and dairy milks, she says. There’s no guarantee, but weighed against customer satisfaction and potential sales, it’s proving to be a risk worth taking.

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