Starbucks, with the new Pistachio Cream Cold Brew, bets more on chilly drinks
Starbucks is adding a new, limited-run, cold brew option, reflecting continued sales growth in the cold drink category at the coffee chain and the industry in general.
The coffee giant today unveiled the Pistachio Cream Cold Brew. The new, iced option is part of Starbucks' winter menu. The drink is sweetened with vanilla syrup and is topped with pistachio cream cold foam and brown buttery sprinkles.
In addition to the cold brew, the Pistachio Latte returns to menus, along with the bakery item, the Red Velvet Loaf.
All options are available for a limited-time.
In the release, a member of the Starbucks beverage team Rosalyn Batingan called the new cold brew the "perfect" flavor to follow the holidays and through the winter season.
The decision to introduce a cold beverage comes as iced remains hot for the Seattle-based company.
Two-third of beverages served in the U.S. are cold, Starbucks executive Michelle Burns said at the 2022 Investor Day. Interim CEO Howard Schultz said that 76% of total beverage sales in the U.S. are cold coffee options in a call with analysts.
Starbucks aims to reel in consumers with the Pistachio Cold Brew, following a success with its fall menu lineup. The 2022 Fall pumpkin spice platform saw a 17% spike, in part thanks to the ability to customize with the Pumpkin Cream Cold Foam.
At its Investor Day, Starbucks unveiled a proprietary, handheld Cold Foamer as part of its Reinvention Plan to enhance "beverage quality" and increase "speed of service while reducing complexity for our partners," Schutlz said in the fourth-quarter call.
Starbucks CFO Rachel Ruggeri told Yahoo Finance that customization was the key when it comes to future growth: "The opportunity around cold, and all our beverages frankly, is our ability to continue to create more premium offerings, with an opportunity to...to personalize drinks." She added: "we think (it) helps differentiate Starbucks."
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Brooke DiPalma is a reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.
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