Starbucks Gets Liqueured Up

• Email
• Share
• Print

Is somebody about to spike your Starbucks (Nasdaq: SBUX)? Today, the party got jumpstarted when Starbucks said that it will team up with Fortune Brands (NYSE: FO), which makes Jim Beam whiskey, to develop a Starbucks-branded, coffee-flavored liqueur. It'll be tested in two U.S. markets later this year.

For those of you reeling at how many more variations liqueur might add to the 19,000 ways you can order a drink at your neighborhood Starbucks -- don't even worry about it. The companies plan to have the liqueur sold in restaurants, bars, and liquor stores -- not in the 7,800 Starbucks cafes that already dot the planet.

In my opinion, that last part's a relief. The idea of adding alcohol to Starbucks locations seems like a plan that would be more trouble than it would be worth. Think of the red tape involved with liquor licensing and possible liabilities. Not to mention, the addition of hyped-up drunks in Starbucks' generally relaxing surroundings might chase away the loyal garden-variety caffeine fiends.

Also, a Starbucks serving booze could lead to a lack of focus that one could argue inflicts restaurant/coffee shop/hangout/bar Cosi (Nasdaq: COSI). For a concept that probably should have taken off with consumers, since Cosi is arguably a "Starbucks & More" atmosphere, the company has struggled. I've recently wondered if the problem is that Cosi hasn't quite figured out what it wants to be.

However, in terms of linking the Starbucks brand to an alcoholic treat, all signs are go. Fortune Brands is a strong player, having recently reported good fortunes for its portfolio of brands. The liqueur will vie with the likes of Bailey's Irish Cream and Kahlua, both of which are classics, if not cool. Judging by the continuing, maybe even fanatical, appeal of Starbucks, a whole new liqueur for the new generation -- that'll probably be part of a whole lineup of new mixed drinks with amusing names -- sounds like a grand idea.

Is this a good fit and a smart way to increase Starbucks' caffeinated empire? Or should Starbucks steer clear of links to booze? Pull up a seat on the Starbucks discussion board and stir things up with other Fools.

Alyce Lomax does not own shares of any of the companies mentioned.