Starbucks is getting into the kombucha business


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Starbucks CEO: This is just the beginning

Starbucks is brewing up some kombucha.

The espresso chain introduced it may promote its personal line of the stylish fermented tea. Starbucks (SBUX) is providing six flavors of kombucha below its Evolution juice model and mentioned the drinks have began delivery to grocers and pure retailers in choose cities.

Why kombucha? The cold-pressed drink is scorching proper now due to its probiotic punch and zingy taste. Gross sales of the fermented tea totaled $1.2 billion final yr, skyrocketing practically 40%. Starbucks says “shopper curiosity” additionally spiked the identical quantity in 2017. The chain mentioned it would not have rapid plans to promote it in its personal shops simply but.

Tapping into the booming drink might assist Starbucks reverse its fortunes. Lately put in CEO Kevin Johnson mentioned prospects have soured on sugary drinks, just like the Frappucino, and he needs the model to promote extra wholesome drinks. Evolution’s kombucha is low in energy and has three to 7 grams of sugar relying on the flavour.

“We all know our shoppers are on the lookout for drinks with purposeful advantages, and Evolution Recent Natural Kombucha is simply what they’re asking for— a scrumptious and refreshing pick-me-up that additionally helps digestive wellness,” Ryan Ziegelmann, president of Starbucks’ Evolution Recent model, mentioned in a press release.

The drink is debuting New York Metropolis, Boston, Chicago, Los Angeles, San Francisco, San Diego and Seattle earlier than increasing to extra cities this fall. Some flavors embody ginger lemon honeycrisp, pink grapefruit, and mango pineapple and can promote for $three.99 for a 15.2 ounce bottle.

Replace: The headline was modified to make clear that Starbucks is promoting kombucha at grocery shops, not Starbucks shops.

CNNMoney (New York) First printed August 10, 2018: eight:07 AM ET

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