The days of the $0.50 coffee cup are long gone. Starbucks (NASDAQ:SBUX) has rerouted global coffee history, and now even sophisticated lattes and cappuccinos are being upended by new, diverse, and socially conscious coffee drink options.
Beyond the bean
In Starbucks' second-quarter conference call, CEO Kevin Johnson detailed the company's hottest products.
"Nitro Cold Brew and refreshment continued to lead for beverage, and our new alt-milk beverages, Almondmilk Honey Flat White and Coconutmilk Latte, are also resonating well with customers," he said. "Our innovation in food, notably, our new breakfast wraps, have surpassed expectations to date."
Starbucks introduced nitro cold brew in Seattle in 2016, and it has since risen to become one of the company's signature drinks in locations all over the world. It launched a new salted honey flavor as well as iced coconut milk drinks and new breakfast wraps this March.
The company first offered plant-based milks with the addition of soy milk in 1997, adding coconut milk in 2015, almond milk in 2016, and oat milk this year.
"Customers are looking for more ways to personalize their beverages," Product Developer Raegan Powell said in a story on Starbucks' website.
Getting back to speed
Revenue in the second quarter was down 5% year over year, but U.S. sales were flat. Management expects to see a greater decline in the third quarter and into the fourth quarter. But if enough customers want their nitro cold brews, maybe things will start looking up.