Starbucks to begin selling an instant-coffee product

The instant product -- called Via -- has been many years in the making, according to Starbucks, and is designed to mimic the taste of store-bought Starbucks. Some Starbucks will begin selling Via next month. || Read "Starbucks poised to launch instant coffee" || Fortune.com: A weak brew

STARBUCKS' E-MAIL TO EMPLOYEES

From: Partner Communications
Sent: Thursday, February 12, 2009 2:21 PM
Subject: Breakthrough Product News

Dear Partners,

This afternoon, a number of media outlets have reported that Starbucks will be introducing a new product next week. Here’s what we can tell you:

We are hosting exclusive events next week in New York and other cities where we will unveil the product. We have been working on this project for over 20 years, and have a patent pending on the technology that enables us to absolutely replicate the taste of Starbucks coffee in an instant form. And as Howard has always said, “The proof is in the cup.”

The instant coffee market is a $17 billion global market and it offers us a significant opportunity as we launch this transformational product.

We wanted to share the key points and get primed for next week. Details and samples will be arriving in stores by Wednesday, so that you can discover first-hand what all the excitement is about.

Best,

Vivek Varma
svp, Public Affairs

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Comments

[snagger]

This really cuts down on the skill level and staffing at the stores.I wonder if it has an expiration date or will it be forever fresh!

[Redacted]

Customer: I'll have a tall brewed coffee please.

Starbucks Employee (SbE): Sorry we don't brew coffee anymore. Would you like a Via?

Customer: What's a "Via"?

SbE: It's our answer to never having brewed coffee anymore--it's instant coffee...

Customer: Well then, BYE YA!

[karen]

They better start working on instant customers. They seem to be vanishing quickly with every new "great" idea. I'm sure this will scare off the last few that remain.

[Latteguzler]

Is that an earthquake, or is it just the vibration of all the other coffee companies laughter????

[Jazzkevin]

Well, at least using instant coffee will make it easier to clean my french press. LOL

[snagger]

So, Howard likes new things.Look at how much money was made with the hula hoop!I'll bet this stuff has a real small carbon footprint-- it's eco friendly.Actually if it's as good as it should be, one could mass sell this stuff wherever there's hot water; no electricty or equipment needed.

[Juan Valdez]

With regards to the claim this idea has been worked on for twenty years all that means is twenty years ago someone went to howard and said, "hey, we should create an "instant" version of our coffee" and their body has never been found. then three months ago, someone said, "hey, we should create an "instant" version of our coffee" and, after everyone said great idea, someone else remembered it was brought up twenty years ago so now they can claim they've been working on it all this time. they just wont mention what happened to the first guy who suggested it.

[green_cup]

Really? I mean, REALLY?! Is this "premium?" No. No this is Folgers Coffee, and my bets are that Folgers still does it better.

At any rate, Starbucks customers need to flee, far and wide. Pick a new coffee shop, an independent, something, anything else.

This will flop even faster than the Sugar Free Mochas. Wow.

At any rate:

Maybe it has some magical flavor crystals in it! It's so good you'll want a second cup!
/sarcasm

There has got to be someone at the SSC shaking their head at these moves which force the brand downmarket. I know, here’s an idea: Howard can segment the brand and have a coffee shop where baristas are encouraged to learn all about the coffees, and you get the best handcrafted espresso and you can sample the finest freshly roasted coffee beans. We can call it Starbucks1992. Fine diners can go to Canlis and have their cup of Starbucks coffee, and ask the waiter, "Is this instant?".

I'm disappointed. It might bring in money but I think it's the wrong direction for the brand, as many of you guys think too.

As an aside, Peet’s FINALLY has a location in the downtown Seattle core now! It’s at about 3rd & Marion (or 3rd & Madison?). It’s been open about a month so I was told, but I just now discovered it.

Posted by: Melody | February 12, 2009 at 03:23 PM

Melody, when are you just going to quit? I mean, if this wasn't the ultimate slap in the face, I'm not sure what is. As you mentioned, that Peet's is pretty decent. Even better it's downtown. I checked it out a couple of weeks ago and go there regularly now. As well, we Seattlites are spoiled beyond when it comes to coffee. You know this, as you've mentioned Vivace, etc. Please, for your sake, go and find a new place.

Starbucks obviously doesn't care about you or the customers that were their core. Now it's sugar, instant coffee and breakfast sandwiches.

Hell, even McDonalds brews coffee still.

It's be hilarious if all they had on "tap" (hot water + instant crystals) was Pike. No Bold Instant. No Decaf Instant. :)

[on the line]

The real question is when I get it is a markout do I have to bring my own platic baggie and bottled water? Next, coffee you can snort or shoot up!!!! How about a coffee patch? Drops? Lozenges? Howard, do you hear this? We can water down our brand by increasing useless profit centers even more!!!

[SpongeBob]

"enables us to absolutely replicate the taste of Starbucks coffee in an instant form"

Replicate *which* coffee, Pike Place?

:/

[Jitters]

I bet McD's feels stupid spending all that money on esspresso bars now!!!

[It's about the dang bean]

please tell me that we are buying robusta for this crap and not using the beans that our partner farmers sweat so hard over.

Disrespectful!

[Melody]

@green_cup: I just found the Peet's today and was very excited! But I still love the Clover. :(

@snagger - Maybe the containers for the Via will ensure freshness for 34 weeks. LOL. Wouldn't it be great if it came in flavor-lock packaging so it had an authentic Starbucks look. Customers won't notice the difference will they? ;)

[Maxwell Folgers]

"Next, coffee you can snort or shoot up!!!! How about a coffee patch? Drops? Lozenges?"

...please, don't give them any more ideas...

[big tree]

i guess instant coffee is good for camping and such....maybe they're going to throw in the importance of an "on the go" lifestyle??? However, there are instant coffee drinkers, and there are starbucks customers. If you're on the search for instant coffee, you're going to get it when you're buying the rest of your groceries- you're not going to stop in a starbucks just for one thing, especially if it's five times more expensive than folgers.

I don't get what's going on here- I know the economy is in poor shape, but this is when we all need to be on top of our game, not trying out far-fetched ideas just to save a buck. It's making each starbucks store look desperate and poorly managed. We make the best coffee? Then lets f-ing make it! Bold and mild! Even decaf! Past 12pm!

[Arch Stanton]

If the best hand tossed pizzeria in town decided to sell pre-made frozen pizza in order to cut cost and wait times, would you buy it? Or would you look for a new hand tossed pizzeria? Would you buy instant coffee from the best coffee house?.......

[LOL/ :-D]

Let's bring back the percalator too. Boild coffee couldn't be any worse than instant.

Are we going to offer instant coffee from all three growing regions?

Will we need to retrain our coffee masters or possibly issue a new colored apron?

Perhaps we could open kiosks in trailor parks nation wide.

Let's put dirt in hot water, maybe no one will notice.

[It's about the dang bean]

Insta-hots installed at the condiment bars, small packets of Via and an honor jar.
Oh the SM will be responsible for the VIA so make sure that the customers put money in the jar for each packet, but hey you save on labor

[LAP]

Ugh. I'd rather they allow Keurig to make Starbucks K-Cup.

What a waste of funds

[stuck@sbux]

This must make all those partners that were laid off yesterday feel better about not being a part of the insanity anymore.

[4merOCSM]

All I can say is WOW... :-(

[Pat Nerr]

GAWD... you just can't make this shite up. I'm sure Howard's pride is swelling at the state of the company...

all partners must be proud right now...

[nycsm]

I'm not crazy about this, but I'll wait until next week to try the samples and see what direction this is really going in.
I know it's hard to be positive right now, but come on...is the only thing keeping most of you working at starbucks the fact that you don't think there is anything else available?

[zoom]

OMG... Starbucks has turned into Sanka?!?

Fail.

[Pat Nerr]

oh... and btw... the instant isn't new. The product has been used at SBUX before... remember the Frapp double stremf powdered coffee? The extract was created by a fella and ex-partner named Don Valencia...

If ya paint poop pink... it's still poop

[Tom]

I think Howard has had one cup too many! Maybe he should get some help or at least switch to decaf.

[Kathy]

This is an insult to customers. You showed us what premium coffee is and now you offer us instant? I am very disappointed.

[IC Lover]

I was seriously hoping April Fool's Day came early at Sbux Gossip but sadly, that's not the case. :-(

Can someone please get Howie on a decent anti-psychotic med? He's obviously got multiple personality disorder. One week it's espresso excellence, the next PPR. Then it's no-more-smelly-sandwiches, and then let's-sell-even-more! It's-all-about-the-coffee-and-Clover and then...well, pink poop (to paraphrase Mr. Nerr :-).

And what makes them think Sbux will win over the instant coffee drinkers? Many of those folks 1) can't/won't pay a premium for coffee and 2)think Sbux is overpriced and 3) think Sbux coffee tastes burnt.

[TNT]

We've been making instant coffee for years. How do you think we make the coffee crapacino base? Oh, sorry...did I spell that wrong?

[Stan999]

Instant PPR....

[BAYAREABUX]

They must be kidding.

[Dave in Seattle]

NARRATOR: "We're here in Seattle at the executive offices of Starbucks Worldwide Headquarters where we have secretly switched Mr. Schultz's usual French press of aged Sumatra with Starbucks Crystals instant coffee. Let's listen in."

EXCECUTIVE ASSISTANT "SALLY": "Good morning, Mr. Schultz."

HOWARD SCHULTZ: "Good morning, Sally."

SALLY: "How is your coffee this morning, Mr. Schultz?"

[Camera slowly zooms in closer as Mr. Schultz enjoys a slow sip of coffee from his 32-ounce Starbucks logo'd travel mug.]

SCHULTZ: "Oh, it's just wonderful as always, Sally. Thank you."

[Host Duncan Winchell barges into the room surprising Mr. Schultz.]

WINCHELL: "Mr. Schultz we secretly switched your morning press of Sumatra with new Starbucks Crystals instant coffee. You didn't notice the difference?"

SCHULTZ: "Huh? What?! No, it tastes so rich and flavorful, just like fresh perc'd. I had no idea I was drinking instant coffee! I'll be drinking Starbucks Crystals instant coffee from now on, Sally."

[regional coffee guy]

...Sankabucks...

[Munchkin]

I would like to first say that I do not know if this is a good idea or a bad idea. I don't see how this is good for brand image, but I do get how this could be good for profits.

Second, while it seems that Starbucks will be selling the coffee in stores, I do not believe the report states that they will actually be "brewing" this coffee to sell and serve to customers. So, let's get a hold of some perspective on this announcement and not freak out.

Lastly, I believe the direction Starbucks needs to go to is to take what we already do and find new ways to make it better. Frappuccinos from scratch is one such way. Work with Bunn and other such equipment makers on new and improved ways to brew coffee. Starbucks SHOULD have worked with La Marzocco or Thermoplan on ways to create real, hand-crafted espresso that reduces inconsistencies and improves speed of service. We SHOULD have been ahead of the curve on our POS systems that would have made them easier to use and would have eliminated the guesswork on what to charge and not to charge for for customers' drinks. (For some of you, how many times have you been to Starbucks and been charged differently for the same drink?) Instead, we are playing catch-up.

Is all this the reason our stock is low and profits are down? No. But, to get customers to continue to come to Starbucks in these economic times, they need to know they are getting the highest quality product available. (More bang for the buck.) But, they are not, and therefore they are not coming often, not at all, or taking their business to competitors.

[SBUX_R&D]

No...Stop...I'm laughing so hard I think I wet myself.

hmmm...possibly a new beverage idea?

[jeffNdc]

How can any partner be proud?

[hearbutloud]

I really thought we had already sunk as low as we could... I guess there is always lower.

[Too Ashamed to sign my fake name.]

My neighbor goes to Africa every year for a month and brings back coffee to last 11 months. It's instant. She loves it.
Personally, I don't like it but she's buying it in the birthplace of coffee and prefers it to anything else.

2nd thought. This is so humiliating.

[dog]

Starbucks has just lowered itself to the bottom feeder status. No longer the sophisticated willy and cunning beutifull brook trout but now has transformed into an ugly cookie cutter fast food bottom feeding trash fish. Howie you have got to be efin kidding!
I'm going back to my maxwell house now

[BOSTON STARBUCKS REBEL]

Official Response of the STARBUCKS REBEL ALLIANCE

To quote President Roslin: "No. Not now. Not ever. Do you hear me? I will use every grinder, every espresso machine, every mug, every beanI have down to my own coffee scoop to end your plans. I swear it! I'm coming for all of you!"

BOSTON STARBUCKS REBEL
PRIMUS INTER PARES
STARBUCKS REBEL ALLIANCE
AIM SN: BOSTONSTARREBEL

[Latteguzler]

We could also offer "Creamora" non-dairy creamer at the condiment bar.

[BOSTON STARBUCKS REBEL]

Quoting Gibbons concerning the Decline and Fall of the Roman Empire: "The decline of Starbucks was the natural and inevitable effect of immoderate greatness. Prosperity ripened the principle of decay; the causes of destruction multiplied with the extent of conquest; and as soon as time or accident had removed the artificial supports, the stupendous fabric yielded to the pressure of its own weight."

[Harold]

Times change. Many years ago as a joke I asked a barista at Starbucks for a jar of instant. He actuallly seemed horrified and said espresso was as instant as decent coffee could ever get. Sigh.

[Luke]

If this doesn't work, I feel sorry for the Partners how will be layed off due to the expence of launching this crap. If it does work, I feel sorry for humanity.

[BOSTON STARBUCKS REBEL]

Zyklon B = Starbucks Via

[Melody]

Oh my god I just had a horrifying thought: you could add a scoop of instant coffee to your banana chocolate Vivanno and that might taste good! Someone please slap me!

Anyone know more about these 'exclusive events'? Inquiring minds want to know!
:-D

[.]

I wish every store would refuse delivery of these samples to show we want nothing to do with it.

[BOSTON STARBUCKS REBEL]

Subject: The Commoditization of the Starbucks Experience

As you prepare for the FY 08 strategic planning process, I want to share some of my thoughts with you.

Over the past ten years, in order to achieve the growth, development, and scale necessary to go from less than 1,000 stores to 13,000 stores and beyond, we have had to make a series of decisions that, in retrospect, have lead to the watering down of the Starbucks experience, and, what some might call the commoditization of our brand.

Many of these decisions were probably right at the time, and on their own merit would not have created the dilution of the experience; but in this case, the sum is much greater and, unfortunately, much more damaging than the individual pieces. For example, when we went to automatic espresso machines, we solved a major problem in terms of speed of service and efficiency. At the same time, we overlooked the fact that we would remove much of the romance and theatre that was in play with the use of the La Marzocca machines. This specific decision became even more damaging when the height of the machines, which are now in thousands of stores, blocked the visual sight line the customer previously had to watch the drink being made, and for the intimate experience with the barista. This, coupled with the need for fresh roasted coffee in every North America city and every international market, moved us toward the decision and the need for flavor locked packaging. Again, the right decision at the right time, and once again I believe we overlooked the cause and the affect of flavor lock in our stores. We achieved fresh roasted bagged coffee, but at what cost? The loss of aroma -- perhaps the most powerful non-verbal signal we had in our stores; the loss of our people scooping fresh coffee from the bins and grinding it fresh in front of the customer, and once again stripping the store of tradition and our heritage? Then we moved to store design. Clearly we have had to streamline store design to gain efficiencies of scale and to make sure we had the ROI on sales to investment ratios that would satisfy the financial side of our business. However, one of the results has been stores that no longer have the soul of the past and reflect a chain of stores vs. the warm feeling of a neighborhood store. Some people even call our stores sterile, cookie cutter, no longer reflecting the passion our partners feel about our coffee. In fact, I am not sure people today even know we are roasting coffee. You certainly can't get the message from being in our stores. The merchandise, more art than science, is far removed from being the merchant that I believe we can be and certainly at a minimum should support the foundation of our coffee heritage. Some stores don't have coffee grinders, French presses from Bodum, or even coffee filters.

Now that I have provided you with a list of some of the underlying issues that I believe we need to solve, let me say at the outset that we have all been part of these decisions. I take full responsibility myself, but we desperately need to look into the mirror and realize it's time to get back to the core and make the changes necessary to evoke the heritage, the tradition, and the passion that we all have for the true Starbucks experience. While the current state of affairs for the most part is self induced, that has lead to competitors of all kinds, small and large coffee companies, fast food operators, and mom and pops, to position themselves in a way that creates awareness, trial and loyalty of people who previously have been Starbucks customers. This must be eradicated.

I have said for 20 years that our success is not an entitlement and now it's proving to be a reality. Let's be smarter about how we are spending our time, money and resources. Let's get back to the core. Push for innovation and do the things necessary to once again differentiate Starbucks from all others. We source and buy the highest quality coffee. We have built the most trusted brand in coffee in the world, and we have an enormous responsibility to both the people who have come before us and the 150,000 partners and their families who are relying on our stewardship.

Finally, I would like to acknowledge all that you do for Starbucks. Without your passion and commitment, we would not be where we are today.

Onward…

[cactusmush]

Instant Coffee: Around for a hundred years. Necessarily used during WWII. Reason: logistics prioritized to war materiel. The U-boats were sunk - we won the war - and instant coffee deservedly (and instantly) relegated to filthy break rooms in Construction Trailers and other nasty places where they don’t clean the toilets or care about what they eat or drink. And Sbux wants to return us to those wondrous times?

What is next from the Sbux? Ersatz coffee made from toasted grain? Bully can tea made from powdered milk, powdered team and sugar? K-Rations? S… on a shingle?

This is parody. ….Or is it….

The purpose of the instant coffee initiative could be a trial balloon to see if Sbux can replace the ground coffee, filters and all processes associated with drip coffee.

Your drip becomes instant. No more filters, grounds or timers. (fewer Baristas)

Then bring in the Clover and offer a real cup for 3 bucks a cup.

The consumer then gets to choose between inexpensive (low cost to Sbux) instant coffee or high priced (v.high margin to Sbux) clover.

Or they could choose to cross the street..

[Sad Spectator]

Howard is borderline crazy. He has fired or demoted everyone who disagrees with him on this product.

Trust me when I tell everyone that he is the textbook definition of desparate. This is another sad attempt to convince the world he's still an entrepreneur. It's shameful. He would rather let the company spiral downward rather than let the world perceive him as irrelevant. In many ways, he's like the angry homeowner who is about to get evicted. He's going to wreck the company so that if he can't have it . . . no one can. The board needs to remove him if they want to save the company.

As for the general notion of instant coffee, I think there is room for improvement and tremendous opportunity. But Starbucks does not need to lead innovation in that space. Let Proctor & Gamble and Kraft have fun in that sandbox.