Early last year Starbucks took a few steps in the right direction to regain the reputation they’d tarnished when their focus shifted from quality coffee and espresso to Frappuccinos and retail products. They were retraining baristas on milk and shots, introduced a lighter roast, and rocked the coffee world by buying the Coffee Equipment Company (makers of the Clover brewer). These were positive steps to repair the brand.
That’s all changed in the recession. The company has closed several hundred stores and laid off thousands of employees. It dropped the quality control measure of pulling shots into glasses. It introduced combo meals, er, “pairings.” And now this:
Premium java giant Starbucks is venturing into what some would consider lowbrow territory with a soluble-coffee product called Via, according to three executives familiar with the matter.
Starbucks declined to comment on the launch, which is said to be a long-term pet project of Chief Executive Howard Schultz and as such will get a significant marketing push.
Starbucks will begin testing the soluble coffee — a term that conjures up images of instant brands such as Folgers, Sanka and Brim — by selling it in Starbucks cafes as early as next month. It’s unclear as yet whether the company will also extend the product to supermarkets, where it already has a presence with ground Starbucks-branded coffee.
A corporate memo to employees describes it this way:
We are hosting exclusive events next week in New York and other cities where we will unveil the product. We have been working on this project for over 20 years, and have a patent pending on the technology that enables us to absolutely replicate the taste of Starbucks coffee in an instant form. And as Howard has always said, “The proof is in the cup.”
Ouch. I realize Starbucks is in a bad way and Schultz’ goal of making his company the equal of leading indie shops was always a pipe dream, but this is completely throwing in the towel. There’s just no way to market your stores’ expertly sourced and roasted beans, high-tech brewing equipment, and skilled baristas while telling customers they can “absolutely replicate” the taste experience at home with an instant formula. This might be profitable in the short-term (SBUX stock is up today, in fact), but it’s brand suicide. Employees are justifiably furious; check the comments at Starbucks Gossip for some of their reactions.
I’m not writing this to gloat. As I’ve written before, I think Starbucks has helped advance the specialty coffee industry and I’m glad to see any shop, whether a corporate behemoth or a small independent, raise customers’ expectations. It would have been great if Starbucks continued in that role. Now, however, I’m more ticked than ever that this instant coffee company has exclusive access to the Clover. So much more could be done with it in better hands.
On the upside, an instant coffee cupping could make for a fun blog post.
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Jacob Grier is a freelance writer, barista, mixologist, and magician in Portland, OR. He writes, eats, and drinks a lot. His articles have appeared in The Washington Post, Reason Online, The Oregonian, and other publications.
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