Friday, June 27, 2014

Starbucks' Hand Crafted Success

Food merchant extraordinaire Howard Schultz CEO of Starbucks has done a better job expanding the Starbucks brand in new and non-traditional avenues of distribution than any other food retailer. Schultz has done that while driving top line growth and bottom line profits within existing units. 
Complementing its mainstay brand attribute of hand crafted yet leveraging differentiation Starbucks has rolled out handcrafted sodas. “Baristas will brew the sodas in stores using a Starbucks-branded "Fizzio" machine, which the company bills as a "breakthrough in carbonation technology." According to Josh Fine, Starbucks brand manager for Fizzio
Currently the sodas will be available in 16 states, including Virginia, Georgia, Florida, Mississippi, Louisiana, North Carolina, South Carolina, Hawaii and parts of California
Starting with three decaffeinated flavors Spiced Root Beer, Golden Ginger Ale, and Lemon Ale customers will be pleased.  Uniquely Starbucks Fizzio is able to carbonate a flavored beverage. This ensures that "every ingredient in the beverage receives the same level of carbonation and maximum flavor," according Josh Fine.
Success does leave clues and here are some from Starbucks:

1.       In the week leading up to Christmas Starbucks sold $ 2 Million Gift cards a day.
2.       Starbucks spends more money on employee health care than on coffee beans every year.
3.       20% of Starbucks customers visit a store 16 times a month that’s Loyalty
4.       Starbucks is now using 6 billion paper cups a year.
5.       Starbucks platform of choice offered 87,000 possible drink combinations and that was before hand crafted soda’s
6.       Starbucks plans to add 1,000 new store in China alone this year.
7.    Starbucks has grown an average of 2 stores a day over the last 27 years.

Steven Johnson is Grocerant Guru at Tacoma, WA based Foodservice Solutions, with extensive experience as a multi-unit operator, consultant and brand/product positioning. Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche.  253-759-7869

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