Maybe we should stop making these comparisons, but Starbucks (SBUX) is making it too easy. This week Starbucks Coffee will be introducing a new product they “have been working on… for more than 20 years.” It will be an instant coffee designed to taste just like regular Starbucks coffee, but at a lower price point. 20 years to do what Kraft and Folgers have been doing for double that time…
According to the company this product should allow consumers who could not otherwise afford their coffee to begin “brewing” at home. It will also allow Starbucks an entry into the $17 billion global instant coffee market.
I would love to know whether consumers who view Starbucks as too expensive for them would ever switch from their regular instant coffee to Starbucks, and whether any loyal Starbucks drinkers will switch to instant coffee to get their favorite brand at a lower price.
In other news, Starbucks stock is down in early trading…
