Starbucks New Products
Starbucks recently unveiled a new single-serving home brewer. Starbucks has always made their coffee available at home. They were presently offering their coffee beans for home brewing; sells premixed bottled frappuccinos; and recently started selling Via which is instant Starbucks coffee. So, being able to brew Starbucks’ coffee at home isn’t a new concept. However, now Starbucks has an added twist with its new top notch coffee system, the Verismo. The Verismo is in alignment with Starbucks’ commitment to bring exceptional coffee and espresso beverages to their customers. In fact, in being able to offer customers these products at home, Starbucks has once again raised the bar (Starbucks Newsroom, 2012).
The single cup brewing machine is coffee’s fastest growing sector. An impressive 38% of the coffee machines sold last year being single cup machines and this sector saw a triple digit growth in 2011. So, as Starbucks tries to stay on top of the coffee market, the $8 million pod market is not the sort of trend this former trendsetter could have afford to ignore; this market is “ripe for innovation” (Wilson, 2012). Starbucks is attempting to capitalize on the popularity of the single-cup coffee machines that use K-Cups. Starbucks’ president for channel development and emerging brands, Jeff Hansberry, noted that 1 out of 3 coffee machines sold is a single-cup machine. He also noted that in the U.S., sales grew by 143 percent last year. Indeed this is a great market as Hansberry notes that “customers want convenience and great quality in their home” (Strom, 2012); that is exactly what Starbucks aims to accomplish with their new Verismo. With the new Verismo Starbucks is able to offer customers the same high-quality coffee and the all the “complexity of the espresso shots” they use in their coffee shops right in their own home (Starbucks, 2012)
The Verismo uses coffee pods and hot water as do at other home coffee systems such as the Keurig. However, the
The single cup brewing machine is coffee’s fastest growing sector. An impressive 38% of the coffee machines sold last year being single cup machines and this sector saw a triple digit growth in 2011. So, as Starbucks tries to stay on top of the coffee market, the $8 million pod market is not the sort of trend this former trendsetter could have afford to ignore; this market is “ripe for innovation” (Wilson, 2012). Starbucks is attempting to capitalize on the popularity of the single-cup coffee machines that use K-Cups. Starbucks’ president for channel development and emerging brands, Jeff Hansberry, noted that 1 out of 3 coffee machines sold is a single-cup machine. He also noted that in the U.S., sales grew by 143 percent last year. Indeed this is a great market as Hansberry notes that “customers want convenience and great quality in their home” (Strom, 2012); that is exactly what Starbucks aims to accomplish with their new Verismo. With the new Verismo Starbucks is able to offer customers the same high-quality coffee and the all the “complexity of the espresso shots” they use in their coffee shops right in their own home (Starbucks, 2012)
The Verismo uses coffee pods and hot water as do at other home coffee systems such as the Keurig. However, the
References: Patton, L. (2012). Starbucks Verismo Brewers Sell Out After Strong Sales. Retrieved September 28, 2012 from http://www.bloomberg.com/news/2012-09-26/starbucks-verismo-brewers-sell-out-after-strong-sales.html. Starbucks Newsroom. (2012). Verismo System by Starbucks Now Available on Verismo.com. Retrieved September 28, 2012 from http://news.starbucks.com/article_display.cfm?article_id=699. Strom, S. (2012). Starbucks to Introduce Single-Serve Coffee Maker. Retrieved September 27, 2012 from http://www.nytimes.com/2012/09/20/business/starbucks-to-introduce-single-serve-coffee-maker.html?_r=0 Wilson, M. (2012). Starbucks Reinvents Itself For Home Brewers, With A Latte Machine. Retrieved September 28, 2012 from http://www.fastcodesign.com/1670874/starbucks-reinvents-itself-for-home-brewers-with-a-latte-machine.