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New product - Via

SBUX announced today that they plan to roll out Via to Starbucks stores across the U.S. and Canada after having tested it for several months now. Via is part of a strategy to provide value for customers who can't or don't want to splurge on a regular coffee purchase. One packet of the instant variety produces a cup of coffee for less than $1. Via costs $2.95 for a three-pack and $9.95 for a 12-pack.

The idea for developing an instant coffee has been brewing at Starbucks ever since a customer named Don Valencia walked into a store 20 years ago with an instant coffee recipe he created. Starbucks eventually hired him to head its research and development team, but Mr. Valencia died in 2007 before Via was created.

With Via, it seems SBUX strategy is futher targeting grocery people and that itself is a lucrative market. Marcus.tan.yi.wei 12:19, September 29, 2009 (PDT)

References

"Starbucks Takes New Road With Instant Coffee " Article from Wall Street Journal

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