Starbucks Introduces Oleato Olive Oil Coffee! Extra Virgin Olive Oil is Suitable for Direct Consumption and Benefits Cardiovascular Health

The Challenge of Product Differentiation

Recently, product differentiation has become a hot topic in the beverage industry. Creative coffee options are abundant now, but many do not hold up to scrutiny. Plenty of products are the same template with the flavor swapped out, so once the first wave of excitement fades, novelty-seeking consumers lose interest quickly.

Product differentiation means making something different from everyone else. For instance, when a shop creates something other establishments would not even dare to imagine -- like Starbucks announcing today that it will add Partanna extra virgin olive oil to its coffee!

According to Starbucks' official website, starting February 22nd, 24 stores in Italy will launch the "Oleato" (meaning "with oil") olive oil coffee series. This includes Oleato Latte, Oleato Iced Shaken Espresso, and Oleato Cold Brew. The Milan Roastery will also offer Oleato Deconstructed Coffee and Oleato Coffee Martini.

The Inspiration Behind the Innovation

Howard mentioned in a media interview that during a trip to Italy last summer, he observed Sicilians drinking olive oil daily. He began incorporating olive oil into his own daily coffee routine, and decided that Starbucks should experiment with combining the two.

That is also why the launch was held in Italy rather than the United States. The product will gradually expand to other regions, including the United States, the United Kingdom, the Middle East, and Japan.

With this bold innovation, Howard reflected on his 40 years at Starbucks. In 1983, when Howard was still Starbucks' Marketing Director, he brought espresso coffee back to America after his first trip to Italy.

That idea, however, was opposed by Starbucks' CEO at the time. As a result, Howard founded his own coffee chain, Il Giornale, and eventually acquired Starbucks, merging both chains and growing the company into the giant it is today.

A Revolutionary Change

Adding olive oil to coffee is something no one had previously imagined. After 40 years, it represents another revolution for Starbucks. Howard also said the launch could potentially disrupt the entire coffee industry. He holds optimistic expectations for the innovation and is confident about the future sales of olive oil coffee.

Market Response and Strategy

Current Starbucks CMO Brewer stated that while many consider using Partanna olive oil in coffee quite extravagant, plenty of customers still want to customize and change the texture of their coffee.

Currently Starbucks' best-selling products are cold coffee beverages, especially the cold brew and iced shaken espresso series, which represent its largest sales category and fastest-growing market segment. That explains why cold brew and iced shaken espresso with olive oil were introduced first.

Brewer also mentioned that Oleato beverages could attract health-conscious consumers. Studies show that consuming olive oil can reduce inflammation and support heart health. On top of that, more and more extra virgin olive oil companies are marketing their products specifically for drinking rather than cooking.

Image source: Internet

FrontStreet Coffee Recommendation

Cold coffee is where the innovation is landing, and cold brew is the easiest way to try it at home. FrontStreet's Strawberry Candy is a strong cold-brew pick: it marries Panama Geisha with a honey-processed Costa Rican coffee for rose, strawberry candy, and dried blueberry aromas, plus a lively sweet-sour balance that deepens into a fruit-wine character as it rests.

If you want a juice-like iced cup instead, FrontStreet's Kenya Small Tomato -- grown at 1,550 to 1,750m from SL28 and SL34 varieties and given a 72-hour double washed fermentation -- shows savory tomato, dried plum, snow pear, and black plum over a long finish, and stays refreshing with ice.

For everyday cold brewing, FrontStreet's Colombia Xizhua brings passion fruit, grape, and apricot sweetness, and you can stretch it further by blending it with FrontStreet's Costa Rica Tarrazu at roughly 1:2 for added citrus brightness and value.