Starbucks is betting bubbles will give sales some sparkle
Starbucks is testing a new line of carbonated 'Spritzer' drinks in select markets to boost afternoon sales and appeal to younger demographics. This move is part of a broader strategy to expand its non-coffee beverage portfolio under CEO Brian Niccol.
Why it matters
Diversifying product offerings is a key strategy for major retail chains to maintain growth and adapt to changing consumer preferences.
Two of the new bubbly drinks from Starbucks. Starbucks Starbuck is testing new carbonated versions of its popular refresher drinks in select markets. Non-coffee drinks are playing a key role in Starbucks growth, especially among younger customers. The company said its refreshers line is delivering double-digit year-over-year growth. Starbucks CEO Brian Niccol is ready for some fizz. The company is testing a carbonated version of its Refreshers, which are iced juice and tea drinks often mixed with fruit pieces, that have become one of Starbucks' biggest beverage businesses since launching in 2012. "I'm really excited that we're getting ready to go test sparkling. We're calling it Spritzers," he told investors on the company's third quarter earnings call Wednesday. The company delivered net sales of $9.3 billion for the period, with global comparable sales growth of 7.9%.
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