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

[BOSTON STARBUCKS REBEL]

Howard Schultz lets go through your letter about the commoditization of the Starbucks brand.

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.

I'm not sure about you but I think, instant coffee really does water down our brand. After all, when all you do is add water, well thats just wrong. I have brought it up to every person so far, and they just shake their heads. Starbucks you are going into the black hole.

[BOSTON STARBUCKS REBEL]

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.

[orinfan]

Paging Orin Smith! Paging Orin Smith! Code RED

[BOSTON STARBUCKS REBEL]

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.

Howard Schultz, I'm not sure but somehow introducing breakfast pairings and instant coffee is not the final solution.

[BOSTON STARBUCKS REBEL]

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 SMATER 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.

Innovation does not mean instant coffee.
Differentiation does not mean instant coffee.
Trusted does not mean instant coffee.

Instant coffee is some thing that white trailer park trash drink.

[BOSTON STARBUCKS REBEL]

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…

Howie, Michelle "Fat Ass" Gass and Cliff. I think your time is beeping and you all just expired. I'm going to have to dump you down the drain.

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

[BOSTON STARBUCKS REBEL]

That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.

But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.

[BOSTON STARBUCKS REBEL]

And for the support of Mission Statement and Guiding Princples, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our Lives, our Fortunes, and our sacred Honor.

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

[kc starbucks rebel]

I want to join the rebel alliance. Do I need to pass any tests? Have any training? Take any loyalty oath?

[green_cup]

First, Boston Starbucks Rebel... calm down. You probably account for 20% of the posts on this thread. Chill.

Anyhow, regarding this:

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

Posted by: Melody | February 12, 2009 at 07:14 PM

This will be on the menu next month! You've just given Starbucks their next new promo!

They really ought to hire you on as a consultant (but be careful of being a layoff in a couple of months.)

[BOSTON STARBUCKS REBEL]

Starbucks Rebel Alliance is bound together by a passionate spirit for holding onto a perpetuating the heritage and traditions of Starbucks. We are true rebels in the sense that we believe in a mission that goes back to our roots as a Company. A company that values, its partners and the contributions. We are woven together by hope for a better day, a day when coffee farmers everywhere will receive a just wage, where affordable insurance is given to everyone, and can all treat ourselves with true respect and dignity for the work we do.

At the current moment, the Starbucks Rebel Alliance has been closely monitoring all of Starbucks to determine the proper course of action. After almost a year of careful patience and reflection, we have now come to the conclusion that the senior leadership is leading the Company down a path of imminent catastrophe. But we are hopeful, that we can avert this crisis by remaining true to who we are, by living out the Mission Statement and Guiding Principles.
The Starbucks Rebel Alliance is organized in a decentralized manner, because that has been most efficient. Each partner who wants to be a great partner is a cell who can motivate and help other partners create the Starbucks Experience. Do not be afraid to ask questions and demand answers from your store manager or district manager. Many of them are afraid to stand up for the truth and not willing to call out others when they see something wrong.

However, the time is here and the place is now.

As President Clinton once said, "There is nothing wrong with Starbucks, that can't be fixed by what's right at Starbucks."

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

[jonesb]

The hold time for the "Perfect Instant Coffee" will probably be 4 seconds...

Customer: Grande Bold

Barista: Let me open the pouch and pour that for you.

Customer: OK

Barista: Sorry it timed out while I was pouring the water in it.

Customer: Looking oddly

Barista: I have to get another pouch, it will only be a minute.

Customer: Do you have any Verona?

Barista: Sweating--The coffee in the pouch is much better than the Verona.

Customer: seen running out the door.

Senior Leadership memo: Don't say pouch, say Perfect Instant.

All customers are now happy :-\

[truth]

Will the New York City events include a giant test tube erected in Bryant Park?

[NVBarista]

"But we are hopeful, that we can avert this crisis by remaining true to who we are, by living out the Mission Statement and Guiding Principles."

I am not sure you are talking about the same Mission Statement that hangs in our store.

[7-11 Coffee ROCKS!]

When the jumbo pack of 200 Via is available at Costco, life can not get any
better. Woo Hoo! (remember WAMU?)

[beantheredonethat]

So let's look at Howard's track record and see if it provides any indication of whether instant coffee will succeed:

We forecast 40,000 stores worldwide.
We only have 3% of the global coffee market...there is room for growth.
Customers give us "permission" to see CDs, movies and books.
Viviano.
Chantico.
Breakfast sandwiches.
Wait, no breakfast sandwiches
Wait again, we have better breakfast sandwiches.
Never franchise (wait, it happens already in international. only a matter of time for it to happen in the US).
We'll enter India.
10,000 stores in China, no problem.
Starbucks is a growth company and growth stock.
Never will we introduce value meals.
McDonalds is not a competitor.

And now, the great Howard, is claiming instant coffee, because it is a $17 billion market, is ripe for the picking...

I think his track record speaks for itself...

Downwards.....

[NVBarista]

Provide a great work enviroment and treat each other with respect and dignity?

Recognize that profitability is essential to our future success?

I am not saying that i was completly shocked by the instant coffee. However i am at least willing to tast it before i go off the deep end.

Its a tough world out there i guess we could all be standing in government cheese lines tomorrow.. (or not.. the government used all of the cheese money to bail out the banks.)

Sometimes you got to do what you got to do..

I am sure that this is not the most proud moment in Howards life.

[jonesb]

Instant coffee at home is a great way to decrease foot traffic in the stores. This will improve cleanliness and decrease toilet paper costs. Another good plan.
Seriously, if it sell in grocery stores more power to it. We need a little some somethin'.

[Herman Melville]

Ad idea for McDonalds

Are you gonna drink your grandmothers coffee (cut to picture of coffee crystals falling into a mug) or are you going to drink good coffee (cut to a smiling mcdonalds employee handing a customer a cup of actual coffee.

This should make it even easier for other companies to start diluting our brand because now we have entered a new arena, and how many instant coffee drinkers do you know that say to themselves "damn, wish I could have some starbucks."

You might as well welcome your new bosses pepsi or coca cola

[KGB]

well now we know that there is something that makes PPR taste better

[Herman Melville]

Anyone want to start a coffee shop consulting firm. Now that I am unemployed and have years of coffee experience I think perhaps I will use what I know to drive starbucks further into the ground. That Howie is making that easier for me by introducing instant coffee is just brilliant.

[g]

Melody,
I'm afraid green_cup is right. This new instant coffee is a slap in the face to customers such as yourself.

I wish I had another coffee shop in my town. All we have is Starbucks. You are lucky to live in a city that has an abundance of coffee houses that I'm sure make a decent cup of bold brew.

It may not be bold brew from the Starbucks of old, but this recession has caused us all to do things we wouldn't normally do.

Good luck.

[Mr. Who]

Most instant coffee tastes horrible because before the dehydration, they brew it at 50% extraction, while the optimal extraction rests at or just above 19%. (Of course, their use of lowest-of-the-low-grade Robusta beans doesn't help with flavor, either.)

Obviously, if they've worked on Via for twenty years, it's not going to taste like backside juice. This is Starbucks, and thoroughly-researched instant coffee by the leading purveyor of expensive coffee is going to be tasty.

Quit the melodrama, this "oh it's totally over niaw" business. This product is going to put the mud that is generic instant coffee to shame.

[Joe]

This isn't a good idea for retail partners. Even if it is a big hit for the instant coffee crowd, it doesn't mean the stores are saved or their won't be more layoffs. It means starbucks has changed direction (again) to focuse on something other than fixing the stores. what a slap in the face to every hard working retail partner and every coffee house customer. This is just one more example of poor management (as if we needed another example).

Way to go Howard!!!

[PA SM]

I know it's after 12pm but is there any way I can get some decaf coffee.

Sure, I'll have it for you in an INSTANT!

[Starloss]

I wonder what Juan Valdez is thinking now.....?????

[Scott]

Mr. Who...

Ya, you're right. It will put the romance and passion back into coffee. I can't wait to mix me up a cup-o-joe. Then I can take my Starbucks cup and walk down the street and other people will be saying "I wish I had a cup of that intant coffee too".

[Melody]

There are so many great ideas with this. I'm looking forward to the in-store version: It could be stylishly packaged with a photo of Howard Schultz on it, and called "Howard's Own". Talk about pride and joy of Starbucks. Hopefully Rock Star Howard's autograph will appear somewhere on the packaging since it is his signature instant coffee. I've always wanted to collect his autograph! Could be even better than Newman's Own coffee which is made by Green Mountain Coffee! And Newman's Own is organic! (I think) Will Via be organic?

Mr.Who, I think you missed the point. Look at what people are saying about Starbucks and that famous memo that BostonStarbucksRebel posted: Please reclaim your status as a world premier coffee brand. Instant coffee is the opposite direction of exquisite premier coffee. It's heading in the opposite direction. Look at the posts by Marketing Professional in this thread.

Hopefully this will come and go faster than a Chantico. Mama Mia it's Via! Is that what they say in Italy about Starbucks' new idea?

[Ex Bux Pgh]

BSR, keep bringing up the Mission Statement and Guiding Principles. Then take them to a company that still believes in them. That ship sailed away from Starbucks a long time ago.

[Wholahay]

BOSTON STARBUCKS REBEL -

Nice Battlestar reference...you're now my favorite.

[Cut out the Heart]

Instant coffee????What will be next, self-service soda machines in the lobby? You know the soft drink industry is 190 billion plus! Oh, and an icy cold Coke will go well with the #3 breakfast combo.

[MAE]

Ok, sorry if someone already wrote this, but appearantly, this will not be served in stores, but sold there. It will be $2.95 for three packs and $9.95 for 12. This was on the MSN homepage.

[Instantsadness]

OK Howard. Its time to hang it up. Please, for the sake of whats left of the integrity of Starbucks....turn the reigns over. I am stunned that anyone would think that introducing instant coffee in the NYC Ego-boosting spotlight would be a good thing for the Starbucks brand.

To Howard and company: why not do a tour of the US stores, and visit the top store in each region??? Elevate the best of the best so that all of us partners can see what we strive to be. Since you love publicity so much, let the media know and let them follow you in your pimped-out bus around the country as you REALLY attempt to reignite the "passion" of your partners and the brand. Hold town-hall meetings in these stores, and let customers have their say too. There are still a large number of people out there who believe Starbucks ideals have not changed that much...this move would reinforce a positive image of this big company still trying to keep it small.

In the end, everyone would win: Howard sees what is really out there and what REALLY needs to happen to fix the issues of the company...partners can see that upper management really believes that the success of the company begins and ends in our stores....and customers will want to be a part of the movement too, especially once they see changes being made and their voices being heard. And since it is all about customers, when they are happy, they come more often and spend more money. Which...at the end of the cycle...makes the shareholders happy.

I would love to take over this company for one year. And, as a 6-yr partner, I bet other partners would support ANYONE who listened to them and had their best interests at heart! Cutting labor isnt the answer if you really believe that you have a premium brand. Providing a premium experience IS!! This is not rocket science. Howard was right when he said years ago that we are in the people business serving coffee. Anyone who has worked at a store that created the 3rd place can vouch for that. Why does he now think that introducing "bold new products" that dilute the brand will make people sit up and listen?

It has to start at the store-level, one store at a time and one partner at a time. To all those making big decisions that affect all of us partners: Figure out who you want to be, and just BE IT. Don't waffle anymore. Just be the best at what you do. It is embarrasingly simple. Why make it harder than it has to be?? We all want to be proud of where we work, and know that we are supported to provide that "uplifting experience that enriches people's daily lives". Since that is what helped build the brand in the first place, it makes sense that it would be the way to climb out of the depths we are in now.

[smkr45]

Starbucks just knows they can swindle a bunch of customers and get away with it. A lot of businesses go this route, riding their brand story and lowering their quality. How many products on store shelves are full of corn syrup and artificial crap, but gullible people buy them every day?

This is just a very cynical move and I sincerely hope that Starbucks doesn't have enough "brand equity" left to pull it off. Judging from their stock price I am doubtful that they do.

The best intention I can ascribe to the company is that its executives have accepted that the high-end business won't last and that its whole cost structure needs to be changed to fit the "new world." If so I hope they enjoy their future lives as mid-level VPs in Altria Group or some such ...

[asmfornow]

I find myself torn. I have until tommorow at 5pm to alert my district manager if I'm staying or going. I was hoping that going would include severence, but the store I'm offered to transfer to is 3 miles away, so no severence if I go. If severence would have been there, my choice would have been easy. But, I've got to make a living. I know that my parents always have my room for me, ready and waiting, but I really don't want to go that route. I'm really torn on what to do. Maybe I'll just get wasted tommorow then wing it. The new manager at the place I would be going to is fired up with the Starbucks Kool-Aid, in fact I think he mixes it, and that could save me. This makes me really sad though. I just don't know what I'm going to do.

[lattegal]

Instantsadness -

...follow you in your pimped-out bus around the country...

SBUX can't afford a new bus.

:D

[beantheredonethat]

news reports where I live are leading their reports with the headline: "Starbucks taking steps to lower premium brand image to compete in tough times"...

Not exactly brand appropriate, but what the hey.....

I'm lovin' it!

[oops]

Is this company serious?!? How do we move Onward if this type of news being released the day after losing some of our finest?

[lattegal]

Instantsadness -

Seriously...your post had some great points...I'm adding to them...

- Figure out who you want to be, and just BE IT. Don't waffle anymore. Just be the best at what you do. (This is so key...key #1)

- Listen to your partners! Really LISTEN...hear what they/we are saying. Oh, and for clarification...the partners IN the stores, who work day in and day out serving customers. (key #2)

- If you have a premium product/brand, and are charging a premium price then you need to have premium service which doesn't happen when the morale in the stores is at an all time low...lack of help on the floor, not knowing if you are going to have a job or not are not ideal morale boosters.

- Remember that we are in the people business serving coffee. And as you put people first, other things start to fall into place. Baristas are your front line... I'm sure you've heard the saying "If momma isn't happy...nobody is happy".

- RETURN TO YOUR ROOTS! People/stockholders loved what the company stood for...and they bought into it.

[Yippee]

Thank the lord independent coffee shops will save us from the self immolation our corporation is experiencing. I guess the heart of the coffee business isn't corporate after all. Howard got us started, he went crazy, and now we must turn to the logical successors, the indies. C'mon over Walmart shoppers.

[Bob Mangino]

Starbucks Gossip is such a ridiculous place. What is the point of this site exactly? I've long held the belief that the less information is known, the more fervent the beliefs you'll find here. Thank you for exhibit A in proving me out. No one on this thread knows really the first thing about this product. Thus, logically, its roundly condemned!

Keep up the "great" work and insightful commentary...

[HOWARDSEND]

I'm thinking about posting an open letter to Howard on MSI. Do you think it would get me fired?

Dear Howard,

I write this letter in the midst of making a very important choice. The choice I face is should I stay or should I go now? When I had my meeting with my DM and SM on Wednesday, I was told I could either transfer to another store or take a severance package. Well, partner resources called me later in the day to inform me that a severance package was out of the question because the store was exactly 10 miles away, not more. Much to my chagrin, I tried to locate a resource on the internet that told me that it was any less than 10.3 miles away, but that doesn’t really matter, I probably won’t make the choice to leave, and I doubt I would have with a measly $1200 thrown at me.

I’ve really enjoyed my time working with Starbucks. Honestly, I’ve met the most amazing people working here, both customers and partners. Before working for Starbucks, I was a very shy person as well. The social nature of the job has helped me overcome a lot of that. I can’t thank you enough for starting this wonderful company and giving me a chance to prove myself to not only myself, but to other people. I can’t thank you enough for that opportunity. I have great friends and associates because of Starbucks, and you created that.

I know what it’s like to create something, and create something successful. You really have a reason to be proud. The company has helped more people than you know in more ways that you can imagine. I know what it’s like to be proud of an accompishment, and I know how it feels to have to let it go, but I think, ultimately, that is the solution to our problems. You have to let go. Since I’ve been with the company, the last time I remember it being successful and the “true Starbucks” was when Orin Smith was t the helm. I know you did a lot for the company before that point and Orin continued on that work.

Then, along came Jim. I know more than most, that Jim was doing what he had to do to keep stock holders happy. The very same people that are blaming our problems on over expansion are the very same people that would have been kicking our asses over not expanding had we been more prudent. But, that would have been leadership. Doing the RIGHT long-term thing when it was unpopular. Now, I know Starbucks is your baby, and you want to be in control, but it’s not really working. I support very few of the choices you’ve made., as do any of my customers. Would you really be in control of your baby and crash it or let it go and watch it flourish? It’s like parenting, you have to let go at some point, mostly because you are too emotionally involved.

Please, pay Orin Smith or somebody else that gets our culture to get us back on track. I hear Paul Twohig is looking for a job.…

Sincerely,
A Partner

[moveon]

Bob Mangino: there are millions of other sites out there...knock yourself out.

[.]

So I imagine we'll be doing blind tastings at our meetings this month.

[BOSTON STARBUCKS REBEL]

"To the last I grapple with thee; from hell's heart I stab at thee; for hate's sake I spit my last breath at thee."

I think Captain Ahab, I mean Uncle Howie is searching for great white whale. But unfortunately, he's going to bring us all down with him as he tries to hunt it.

"And then, as if his chest had been a mortar, he burst his hot heart's shell upon it."

[Oliver]

This company has fallen so much farther, so much faster than I dreamed possible.

When I left in at the end of 04 / beginning of 05, I left with the certainty that SBUX would become the next TCBY. I was in Store Dev (a greater bunch of Kool Aid drinkers you have NEVER seen) which gave me a front row seat to stupid decisions. The motto could have been "Growth at any cost! Growth for the sake of Growth!". There was no thought of the long term - only a race to open as many stores as possible to fulfill the absolutely RECKLESS numbers that were promised to Wall Street.

Add to all those stupid store dev decisions this latest INSTANT COFFEE thing, and you don't have TCBY anymore....you have Woolworths, E.F. Hutton or Pan Am. It's just going to go away.

WHAT ARE THEY THINKING? INSTANT COFFEE? There are no words for the level of stupidity here. Really. None. They even offer brewed coffee when you are waiting in the seating area of the Jiffy Lube! The thought of PAYING MONEY for someone to put hot water in a cup of Foldgers Flavor Crystals for you is enough to make me gag! ick ick ick ick ick

Howard needs to go. I vaguely remember some passage in his book about how a man came into his office upset that he was no longer qualified to do the job he had been doing for years, and Howard said essentially, sorry, but that's what happens in a growing company....well, Howard, you are no longer qualified to do your job. Then they need to get rid of all the blanks in Store Dev that dug this hole to begin with - 90% of whom are still there, still making the same terrible decisions, and all of Howard's other yes men.

If you are lucky, you'll end up with a viable chain of about 2000 outlets in suburban and metropolitan areas and another couple hundred licensed concepts in airports. If you are very, very lucky.

Good luck to you all. I mean that. I rarely go to SBUX any more, but this? this seals the deal. How can you put down Dunkin' Donuts or McDonalds when you are selling instant? Good Lord.

[Asher]

Maybe it's just me, but I don't see anything that says we're going to be serving this over the counter...my gut feeling is this will be a flavorlock coffee that will be with the rest of your 1-pd whole bean.

Put it on your shelf and forget about it. Maybe some of your cheaper customers will actually buy it...

[cactusmush]

Most of you are missing long-term plan in all of this.

Sbux instant coffee initiative is eventually aimed at replacing the Grounds, drip, and filter process. Sbux wants to eventually migrate the push button efficiency of its Espresso process to a push button process for a "drip". That would be their non-premium or tier 1 cup of coffee.

At the same time they will deploy the Clover to create a "premium" or tier 2 line of coffees. The instant would be the lower cost coffee (which perfectly dovetails with the “value meals”- enhancing the margin on that line). The Clover would try to retain the customers wanting a real cup of coffee (at $3-$4 a cup).

You guys are imagining baristas dumping individual pouches into cups and initially it may be like that while on trial. But the eventual vision involves automation. The processes made possible by coffee from powder or concentrate are very tempting to the accountants running the company...fewer Baristas and smaller stores.

Anyway - to the apologists of this initiative ("same great taste bla bla..innovation bla bla") you guys sold out long ago. You would think Space Food like Tang, high fructose syrup in savory canned foods and aerosol cheese is "innovative" and you might even feed these things to your family.

[jmkizer]

It'll probably taste evil -- you know, like Pike Place.

[Mal Carne]

Good Lord.

I am so very, very glad that I'm no longer working for this company.

What a horror.

Suppose that this really is some super-amazing powder that makes decent coffee - what kind of water is it going to be heaved into?

And when it gets tossed into chlorinated, lukewarm tap water, and the customer gets a wretched cup of coffee because of it - what's that going to do for the reputation of our brand?

Starbucks is doomed. I don't even know what the bottom is in terms of stores closing and partners being laid off. What's "profitable" any more? Has upper management realized yet that Starbucks is never, ever going to be a $30 stock again?

I'm with Forbes. This company won't last the year.