Starbucks introduces instant coffee?

February 17, 2009 – 5:01 pm – No Comment

Instant coffee is typically not America’s choice for coffee drinking. In the U.S. instant coffee only makes up 9 percent of the coffee consumption for the country. So, why would Starbucks be concocting an instant coffee for test markets in Seattle and Chicago?

Well, while I’m not sure about why it is testing in those markets, I did learn that as opposed to the U.S. other markets like Japan, the United Kingdom and South Korea’s consumption of instant coffee is around 60%.

With Starbucks’ declining profits maybe this will help them in markets that it hasn’t entered before:

The $17 billion in instant-coffee sales make up 40% of the global coffee market, with $3.4 billion accounting for the premium segment. As a comparison, Starbucks touts a packet of Via makes a cup of Starbucks coffee at less than $1, while at Safeway supermarkets a 7-ounce jar of Nescafe goes for $4.99; an 8-ounce jar of Folgers Instant goes for $6.99 and Maxwell House Instant costs $8.49.

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