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

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The Challenge of Product Differentiation

Recently, product differentiation has become a focal point of discussion in the beverage industry. Although creative coffee options are now abundant, many fail to withstand scrutiny. Numerous products are simply variations of the same template with different flavor substitutions, so after the initial wave of excitement fades, novelty-seeking consumers quickly lose interest.

Product differentiation means producing something different from others. For instance, when a shop creates something that other establishments wouldn't even dare to imagine, like Starbucks announcing today that they will add Partanna extra virgin olive oil to their 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. Consequently, he began incorporating olive oil into his daily coffee routine and decided that Starbucks should experiment with combining the two.

This is also why the new product launch was held in Italy rather than the United States. However, this product will gradually expand to other regions, including the United States, United Kingdom, 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.

However, this idea 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 developing the company into the giant it is today.

A Revolutionary Change

The practice of adding olive oil to coffee is something no one had previously imagined. After 40 years, this represents another revolution for Starbucks. Howard also expressed that the launch of this new product could potentially disrupt the entire coffee industry. He holds optimistic expectations for this innovation and is confident about the future sales of olive oil coffee.

Market Response and Strategy

Current Starbucks CMO Brewer stated that regarding the use of Partanna olive oil in coffee, many consider this approach quite extravagant, yet many customers still wish 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 the largest sales category and the fastest-growing market segment. This 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 help with heart health. Additionally, more and more extra virgin olive oil companies are marketing their products specifically for drinking rather than cooking purposes.

Image source: Internet

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