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Starbucks Launches New Protein-Infused Drinks | Novo Nordisk and Hims & Hers Settle Patent Dispute, Collaborate on Weight Loss Medications | Oil Price Volatility Amidst Iran War | Writers Guild Prioritizes Health Plan, AI, and Compensation in Negotiations | Live Nation and Justice Department Reach Settlement in Antitrust Case | Walmart vs BJ’s Wholesale: Which Retailer Is the Better Buy? | Byron Allen Acquires Stake in Starz: What It Means for the Media Landscape | Exxon Mobil Stock Soars on Swiss Exchange Amid Record Volume | Stock Market Plunge: Sensex Tumbles as Oil Surges Amid Iran War Fears | Starbucks Launches New Protein-Infused Drinks | Novo Nordisk and Hims & Hers Settle Patent Dispute, Collaborate on Weight Loss Medications | Oil Price Volatility Amidst Iran War | Writers Guild Prioritizes Health Plan, AI, and Compensation in Negotiations | Live Nation and Justice Department Reach Settlement in Antitrust Case | Walmart vs BJ’s Wholesale: Which Retailer Is the Better Buy? | Byron Allen Acquires Stake in Starz: What It Means for the Media Landscape | Exxon Mobil Stock Soars on Swiss Exchange Amid Record Volume | Stock Market Plunge: Sensex Tumbles as Oil Surges Amid Iran War Fears

Business / Retail

Starbucks Launches New Protein-Infused Drinks

Starbucks is introducing a new line of protein-infused beverages, including protein lattes and cold foam drinks, across the U.S. and Canada. This move aims to capitalize on the increasing consumer interest in protein-rich options and revita...

Starbucks launches fresh new drinks that could boost its turnaround efforts
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Starbucks Launches New Protein-Infused Drinks Image via CNBC

Key Insights

  • Starbucks launched protein lattes and cold foam drinks on September 29th in the U.S. and Canada.
  • Wells Fargo estimates this launch could add 2.5 percentage points to U.S. same-store sales, potentially $720 million if attach rates hit 10%.
  • The U.S. market for quick-service protein drinks is about $10 billion; Starbucks aims to capture a 10% share.
  • Starbucks CEO Brian Niccol introduced the protein beverages through a 'Starting 5' stage-gate process to test customer demand.
  • New protein options include Iced Banana Cream Protein Matcha, Iced Vanilla Cream Protein Latte, Chocolate Cream Protein Cold Brew, and various Protein Lattes.

In-Depth Analysis

Starbucks' introduction of protein lattes and cold foam drinks represents a strategic effort to modernize its menu and cater to evolving consumer preferences. CEO Brian Niccol's 'Starting 5' stage-gate process aims to mitigate risks associated with new product launches, a lesson learned from previous mixed results with initiatives like Oleato.

The new protein beverage platform includes a variety of options:

  • **Protein Cold Foam Drinks:** Iced Banana Cream Protein Matcha (24g protein), Iced Vanilla Cream Protein Latte (26g protein), Chocolate Cream Protein Cold Brew (19g protein).
  • **Protein Lattes:** Sugar-Free Vanilla Protein Matcha (28-36g protein), Sugar-Free Vanilla Protein Latte (27-29g protein), Protein Matcha (28-36g protein), Vanilla Protein Latte (27-29g protein).

Customers can also customize existing drinks with flavored protein cold foam (+$2) or protein-boosted milk (+$1). This initiative follows Starbucks' restructuring plan, which includes store closures and corporate layoffs, expected to generate significant EBIT savings.

However, Starbucks faces near-term headwinds, including flat North American comps and rising coffee prices. Wells Fargo analysts have trimmed EPS forecasts for fiscal years 2025 and 2026, highlighting execution risks. Despite these challenges, the protein beverage platform aligns with the trend that 70% of Americans are trying to add more protein to their diets.

**How to Prepare:** Consumers can explore the new protein-infused options at their local Starbucks. Investors should monitor Starbucks' sales data and market performance to assess the success of this initiative.

**Who This Affects Most:** Health-conscious consumers, Starbucks enthusiasts, and investors interested in the company's turnaround.

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FAQ

- **Q: What new protein drinks has Starbucks launched?

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- **Q: Why is Starbucks launching these new drinks?

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- **Q: How much protein is in these new drinks?

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- **Q: Can I customize my existing Starbucks drink with protein?

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Takeaways

  • Starbucks' new protein-infused drinks offer a healthier alternative for consumers looking to increase their protein intake while enjoying their favorite coffee. The success of this launch is crucial for Starbucks' turnaround strategy and could restore investor confidence. Keep an eye on sales data and market performance to see if this initiative pays off.

Discussion

Do you think Starbucks' new protein drinks will be a hit? What are your favorite healthy options at Starbucks? Share this article with others who need to stay ahead of this trend!

Sources

Disclaimer

This article was compiled by Yanuki using publicly available data and trending information. The content may summarize or reference third-party sources that have not been independently verified. While we aim to provide timely and accurate insights, the information presented may be incomplete or outdated.

All content is provided for general informational purposes only and does not constitute financial, legal, or professional advice. Yanuki makes no representations or warranties regarding the reliability or completeness of the information.

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Always do your own research (DYOR) before making any decisions based on the information presented.