Starbucks goes Blonde to get more business
The coffee chain is introducing its lightest and mildest roast yet in an effort to reach more customers.
The coffee chain is trying to change that perception with Blonde, its lightest roast ever, and one it says is milder and less acidic. It's an attempt to reach that 40% of the U.S. coffee-drinking crowd that prefers a lighter roast, Reuters reports.
The move amounts to a land grab in the coffee market. Starbucks wants new customers and is breaking its Italian-inspired tradition of darker, heartier roasts to get them. "This is a significant opportunity for Starbucks to gain a greater share of the brewed-coffe market," the company said.
Starbucks shares were down nearly 2% Wednesday to $41.66. The company's stock price has soared more than 40% in the past year. One analyst looks at the share price run in the following video.
Post continues below.
Although Starbucks' cafes will brew Blonde daily, the new roast is more about supermarket appeal. More than 70% of all packaged coffees sold in grocery stores are either light or medium roast.
Starbucks already tried reaching more coffee drinkers in 2008 with its Pike Place roast, introduced as an "everyday" option. But it sounds like Pike Place wasn't a huge seller; the company later said it produced an incremental bump in sales.
Some people are criticizing the coffee as weak and watery. Gawker says Starbucks is catering to milquetoast America. "It won't be too long before America's precious tummy can't handle anything harsher than juice from its sippy cup," the site scoffed.
But analysts are generally positive, according to Deutsche Bank, because Starbucks will maintain its premium positioning and will price its packaged roasts by tier, with light at the bottom.
What do you think, readers? Will Blonde bring new customers and more revenue to Starbucks?
MORE ON MSN MONEY
DATA PROVIDERS
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
Japanese stock price data provided by Nomura Research Institute Ltd.; quotes delayed 20 minutes. Canadian fund data provided by CANNEX Financial Exchanges Ltd.
LATEST POSTS
Try as the bears might, they couldn't break U.S. stocks. But investors still face frothy prices and considerable headwinds.
FIDELITY VIEWPOINTS
- How to sell covered calls - Fidelity Investments
- Savvy year-end tax moves to consider now - Fidelity Investments
- Seven ways to prepare for tax changes
- Five reasons an annual review is crucial - Fidelity Investments
- Take a look at mid caps now - Fidelity Investments
- State of the sector: Health care - Fidelity Investments
VIDEO ON MSN MONEY
ABOUT
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.
