Starbucks’ Focus On Cold Beverages Heats Up Sales

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As sales heat up, Starbucks focuses on cold beverages

, CEO Kevin Johnson said the company was planning to double its food business by 2021.

It’s also helped with traffic, an important metric considering much of the industry is struggling to find new guests. , Johnson said traffic has increased from the first part of the year, and no doubt driving much of that traffic is beverage innovation, specifically cold beverage innovation. Don’t expect this beverage momentum, cold or otherwise, to slow anytime soon. You can, however, expect a significantly different approach. Two years ago, the company relied on its beverages for exciting limited-time offers, which drove spikes in the business, according to Grismer.

An additional benefit to this platform is it has helped reignite a spark in Starbucks’ afternoon business which has suffered slightly from a decline in the company’s signature Frappuccino sales. In 2015, . By May 2018, sales of the drink were down 3%. Executives cited more health-conscious consumers for the drop.

Starbucks has also beefed up the technology behind its loyalty program, leveraging machine learning to garner more data about consumers’ habits and enhancing personalized marketing efforts accordingly. These changes, Grismer said, have contributed to engagement and comps the last two quarters.

 

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