Starbucks plans to test Cold Pressed Espresso in some cafes by the end of the year as consumers increasingly stick to cold drinks for their caffeine boost.
The drink was already available at Starbucks luxury reserve locations. Preferred by younger customers, cold drinks have played a critical role in increasing the chain’s sales in the same store in recent years. In the past three years, consumers have spent more than $ 1 billion on Starbucks cold drinks.
“More than 50% of the drinks we sell at Starbucks are cold,” CEO Kevin Johnson told CNBC’s Kate Rogers in an interview on “Halftime Report” on Wednesday.
Johnson predicted that after the pandemic subsides, consumers will look for more social interaction, leading them back to Starbucks cafes to buy their cold drinks. But they will also likely still be driving through lanes or ordering mobile to pick up their coffee.
The company is also gearing up to open one of its first sustainable coffee roasters in China next year. With $ 150 million committed, the project is the company’s largest investment outside of the United States and the first in Asia.
“This is one of the things we do to not only reduce our carbon footprint, to eventually get to zero, but ultimately to store more carbon than we emit,” Johnson said. “That is our long-term agenda, and we are committed to it.”
Shares of Starbucks are up 86% in the past year, putting it at a market value of $ 129 billion. Although the sale of the company was battered by the pandemic, the recovery in the US and China is progressing faster than expected. Next quarter, Starbucks forecasts same-store sales growth in the US of 5% to 10%, and Chinese same-store sales are expected to nearly double.