Analyst says VIA could reach $1 billion in annual sales by 2015

Does this analyst need a reality check, or is the new flavored VIA getting enough interest to make his prediction possible? || Read "VIA could reach $1B in sales by 2015"

Comments

[newbie no more (was sbuxnewbie)]

Yeah.. The majority of the customers _who try the flavored VIA_ like it; the occasional comment is that it is too strong, rather than too sweet.

About 3-5% of the folks who try it are buying at our store, but as they try different flavors, that can push buttons toward buying. And now, with the dollar off coupon we're giving to anyone who tries it, this week is off to a better start than last week.

The odd thing is that the flavored VIA sales are not at the expense of the unflavored, or whole bean: the customer is either making an additional purchase, or is a new customer who hadn't heard of VIA ready brew (Our instant coffee, that we've been selling for more than a year.)

I guess I shouldn't be surprised - yesterday,someone asked when we had started carrying Guatemala Antigua...

[Aaron]

Maaaybe, but they may have to lower prices first. In the announcement from Howard congratulating everyone about Via hitting 100 mil, they pointed out its market share of single serve premium coffee, rather than of instant coffee (whereas when it launched they talked about how big of a market there is in instant coffee). I think this is because via is too expensive to do well marketed as an instant coffee. Maybe if they lower prices 30-50% though. They do need to pick a strategy though, at launch they talked about instant coffee, but avoided calling it instant coffee in sales materials (instead it's "ready brew"), and now they seem to be more consistently avoiding instant coffee marketing, which is okay as long as they're consistent, but still I think the wrong choice.

Anyhow, this analyst is basing potential growth on it being marketed as instant, which it is not.

[Current Partner]

The way the DMs are pushing us to sell VIA, I have no doubt we'll hit that goal, assuming we continue recovering economically. VIA goal has continued to rise with every promotion. Though I think the pressure on the DMs is seriously starting to make them crack a bit. Ours called the other day asking why customer count and sales were down from the previous year (fall break). I understand asking about sales, but Customer Count? I'm glad I wasn't the one answering the phone, or I would have said "because not as many people came into the store."

[Darth Sidamo]

The more than occasional comment I get from customers is, "This tastes like a sphincter." I then reassure them that some people are actually into that sort of thing and that it would still make a great stocking stuffer. At $6.95 I would say this type of sphincter is much cheaper than the other some people usually pay for. Almost a steal.

[weatheredbarista]

It will most likely go down in price after a couple of years. They have to pay off all of the "R&D" they did like pharmaceuticals.

[Willie Wifi]

Via cost twice as much as a serving of Keurig, and that stuff is overpriced. Sbux should focus on expanding markets like serving diabetics. The cinnimon spice Via is nice but has way too much sugar and drinks with chicory can make a diabetic on meds bleed out. Just sayin'.

[erstwhile]

I look forward to the day when VIA goal gets lumped with whole bean. How long is that off, now? (And hopefully, it's not ridiculously high?)

[_]

@Willie Wifi:

Because Starbucks really needs to target such a small sliver of the customer market.

...or not.

[latteteadah]

@Willie wifi - they already have loads of sugar-free and diabetic-friendly choices. And people who are taking meds to control diabetes know they aren't doing themselves any favors by drinking their calories - whether the calories come from sugar or a substitute makes no difference. I have a sugar-sensitive medical condition, yet I find myself to be a regular SB customer and a Via fan. I simply don't take cream or order the floating whipped-cream-and-sugar-bomb-frapps like many people do. My palate is more discerning/the better for it. I can taste the difference between a Komodo Dragon and a Pike Place. I don't think I'd be as good a customer if I drank the froo-froo sugar drinks - you can get those anywhere.

I agree about the Keurig cost-per-cup comparison. Waiting for the day when the per-packet cost comes down, then might get a few Via bags at a time. As it is, they're more occasional treats than everyday habits.