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Starbucks (NASDAQ:SBUX) Offering Instant Coffee in UK


Thursday, March 4th, 2010

Pretty soon customers of Starbucks (NASDAQ:SBUX) in the UK will have the option of ordering an instant coffee mix, as next week they get set to offer it to all its stores in the UK. Next month Japan stores will also have the instant coffee option on the menu.

The marketing director of the company in the UK, Brian Waring, noted that it was a surprise at how popular the brew mix was in the British market, as the test introduction exceeded their expectations, which wasn't even sure it would be positive, let alone popular.

Under the brand name Via, the instant coffee mix has become an instant success so far in the markets they've tested. It was launched in the United States last year after tests were also successful, and ultimately was offered across the U.S. as a result.

Along with its Starbucks stores, Via is also available in Costco and Target stores in the U.S., along with others, making the total physical sites you can buy Via over 25,000 in America alone.

After struggling for some time, same-store sales at Starbucks experienced a 4 percent increase, with Via accounting for over half of that in the most recent quarterly results of the company.

After the positive North American and British results, Starbucks isn't even going to bother with testing the Japanese market, as it's considered one of stronger instant coffee markets from past history, and will be launched in all of the Starbucks stores in the country on April 14.

When Via was first talked about and tested in the U.S. in 2009, most scoffed at the idea and thought it was a sign of desperation by Starbucks. Now that is seems they have a big hit on their hands, things are quiet from their former critics.



Article by Gary B

The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com



Tags: instant coffee , starbucks , via