I know the economy is going badly and Starbucks is scrambling for cash, but degrading their premium brand is probably not going to end well.
For the press release disguised as a news article version, see:
http://www.msnbc.msn.com/id/33092510/ns/business-businessweekcom/
It's funny as all heck to be ding by Wall Street Journal:
http://online.wsj.com/article/SB10001424052748704471504574447070743132740.html?mod=googlenews_wsj
What product did he point to as the canary in the coffee mine? Instant coffee. Mr. Wu [Former Director of R&D for Starbucks] called it "a product of last resort."
This week Starbucks gave the full nationwide rollout to its new line of instant coffee.
and also,
Which doesn't mean Starbucks instant coffee tastes bad. It's very good, as far as instant coffee goes, and not terrible when compared with a regular cup of brewed coffee. Just drink it fast, while it's super hot. Warmish Via has a slightly pasty quality.
Adweek hits the nail on the head:
the question remains whether this is a solution in search of a non-existent problem. If the consumers now willing to pay more at both the store and in the aisle for Starbucks don't want an instant, that leaves Via to Nescafe and Sanka users. It's difficult to imagine that most folks now using the big instant brands at a fraction of Via's price will suddenly be willing to spend far more for a taste they haven't felt the need to pay for before, particularly in the current economic climate.
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