Starbucks’ Instant Brew for Instant Change

It’s been a little more than a year since Howard Schultz returned to the iconic Starbucks Coffee Company as CEO.  The stock, which has tumbled from 19 at the beginning of 2008 to 10, hasn’t performed quite as well as analysts expected and shareholders hoped.

Now, Schultz introduces Via, its inaugural venture into the instant coffee category, to a less than enthusiastic public.  Starbucks fanatic blog “Starbucks Gossip” gave sneering remarks:

“Okay, company over. Everyone go home”

If there’s one thing Schultz loves, besides growing an empire of coffeehouses, it’s a well brewed cup of coffee. Starbucks has been known for its luxury designer drinks at a high price point.  The venture into instant coffee may allow Starbucks to reinvent the category, much like how it reinvented the coffee shop in the early 1990s.  Via brings the cost down to encourage people to still enjoy their morning Starbucks, even if they have to wait until they arrive at the office for that first sip.

Fast Company was able to sample an early taste test.  Starbucks set up a blind taste test to try competitor instant coffees, Starbucks’ brewed coffee, and Starbucks’ new instant coffee.  The results?  Favorable, but only if you are used to drinking Starbucks:

Most were impressed, calling the flavor “impressively rich” and noting that “the color, taste, and consistency are identical to a $2+ venti.”

Keep in mind, a few of the samplers from Fast Company didn’t like Starbucks’ original brew.  And Starbucks didn’t provide cream or sugar for people to add to taste.  If the sample was comprised of regular customers, it’s likely that the results would have been more positive.

Even in a recession, Starbucks has already introduced a line of instant oatmeal, which performs very well. The Via instant coffee will join the product lineup to allow any customer an affordable Starbucks breakfast, to go.