Friday, August 25, 2017

At Starbucks Partnerships Matter

In what just might become the next big thing in foodservice retail once again very well may be branded partnerships that’s according to Tacoma, WA based Foodservice Solutions® Grocerant Guru® Steven Johnson. 

Just think as Starbucks is closing its online store it is signaling to the industry that is a 'seismic shift'  is about to hit the fresh food retail branded world.  Note: Starbucks' online store is selling items at up to 50% off "while supplies last. Check it out at

A recent press release noted that Starbucks' online store is discounting items up to 50% as the coffee giant prepares to shutter the store for good. The company will close its online store on October 1, a Starbucks representative confirmed to Business Insider.

Starbucks' online store is selling items such as glasses, mugs, coffee brewers, and espresso makers, in addition to coffee, tea, and beverage syrups. People will still be able to buy items currently sold online at third-party sellers like Amazon and Starbucks' grocery partners.

Starbucks spokesperson Maggie Jantzen  stated "We're continuing to invest in amplifying Starbucks as a must-visit destination and are looking across our portfolio to make disciplined, thoughtful decisions… "Continued integration of these digital and mobile customer connections into our store experience is among the highest priorities for us, and to enhance that focus we've looked for ways to simplify our current efforts."

Jantzen said that Starbucks will keep frequent visitors of the online store up to date on product availability, especially as certain items sell out. As Starbucks shutters its online store, the coffee giant is looking to build "commercial partnerships" with digital companies.

"These partnerships, we believe, will enable us to leverage our brand, our global retail footprint, and the customer base in order to extend our reach," CEO Kevin Johnson 
said in a call with investors in late July.

In case you had not noticed Starbucks is also growing its consumer packaged goods (CPG) business, selling items such as K-cup pods and bottled Frappuccinos in grocery stores. Earlier in August, Starbucks announced that it would begin selling its new bottled Pumpkin Spice Latte in grocery stores later in the month.

Starbucks has made 
serious investments in digital over the last few years, as executives have witnessed retailers struggle to cope with the rise of ecommerce. Currently, mobile payments make up 30% of Starbucks orders in the US.

"Retailers who are agile and reimagine the art of the possible will be big industry winners," Johnson told investors on the industry's "seismic shift" towards digital and mobile. "Those who do not will struggle mightily."

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit Johnson, or

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