Starbucks is about to get a whole lot stronger as it expands its customer segment to a healthier population.
With its recent announcement of Fruit Packs, Starbucks has decided to introduce a healthier option for food in their cafes. Amongst their 19,000 stores internationally, most of Starbucks’ profits come from their sale of drinks. After witnessing a decline in their packaged food sales, Starbucks has attempted to launch the line of Fruit Packs to help increase revenue from packaged goods. The Fruit Packs have little calories and provide for a healthy snack on the go, and are going to be produced by third party suppliers in order to reduce costs. With the Fruit Packs coming into place, Starbucks has also decided to let go of some of their other packaged goods, e.g. bread and more. This caters to the demands and lifestyles of consumers as most want to eat a sweet treat that is not going to produce adverse effects on their health.
The Fruit Packs will be priced at $2.50, will be relatively small, and will replace their current $2 packs that are less healthy than the new option. Starbucks will also hold promotions, where buying a coffee or a drink will allow customers to receive a half price on their fruit pack, in order to gauge interest and to assess its success with customers.
With such a move, Starbucks not only expands their target market, but also allows for them to yield higher profits, if the Fruit Packs scheme proves successful. In other news, Starbucks also raises the prices of their coffee to raise profits, as coffee bean prices fall.
http://www.cnbc.com/id/100990171
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