Defend Truth

Starbucks seeks new growth through instant coffee

Starbucks seeks new growth through instant coffee

So what’s up with Howard Schultz, Starbucks legendary CEO, introducing instant coffee, $1 per cup Via Ready Brew? It’s pretty simple: after many years of planetary expansion, all the way to 16 000 stores, Starbucks had to face what every big company has to at some stage: saturation. Selling espresso-based coffee enabled it to grow big, but it had to end somewhere. Starbucks’ ubiquity and the global downturn, coupled with increased competition from surprising competitors like Walmart, McDonalds and Dunkin’ Donuts, meant the radical ideas became very welcome. But instant coffe, for Pete’s sake? The market may be big, actually huge at $20 billion globally, and US instant coffee drinkers account for only 4% of it, making it obvious target for the behemoth desperate to grow. But do they have to destroy Starbucks in order to save it?

Gallery

Please peer review 3 community comments before your comment can be posted

We would like our readers to start paying for Daily Maverick...

…but we are not going to force you to. Over 10 million users come to us each month for the news. We have not put it behind a paywall because the truth should not be a luxury.

Instead we ask our readers who can afford to contribute, even a small amount each month, to do so.

If you appreciate it and want to see us keep going then please consider contributing whatever you can.

Support Daily Maverick→
Payment options

[%% img-description %%]

The lowdown on NHI: The why, the impact and your options

Why does the government want to introduce NHI, will this mean the end of medical schemes as we know them, and what can be expected to change in the next two years?

Join our live webinar on Thu 30 May at 12h00, live, online and free of charge.

MavericKids vol 3

How can a child learn to read if they don't have a book?

As the school year starts again, thousands of children will not have the basics (like books) to learn from.

81% of children aged 10 cannot read for meaning in South Africa.

For every copy of MavericKids sold from the Daily Maverick shop, we will donate a copy to Gift of the Givers for learners in need. If you don't have a child in your life, you can donate both copies.

Small effort, big impact.