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Starbucks Brews Up Extensions And Expansions For Frappuccino

Hoping to reverse an unspecified slide in sales of its 15-year-old Frappuccino brand, Starbucks is ready to roll out some recommendations gathered from its Passion Panel -- its best customers who respond to online questions in exchange for perks. Among the innovations will be customized Frappuccino, branded ice cream and more bottled versions of the concoction. Starbucks also got the message to test "wacky" ingredients and devise new products, Bruce Horovitz reports.

"We know we can grow the brand around the world," says global CMO Annie Young-Scrivner; it is looking to figure out the best categories into which it can extend the Frappuccino name.

The beverage, which accounts for an estimated 15% to 20% of sales at Starbucks stores, is also facing new competition from McDonald's Smoothies line this summer, Horovitz points out. Among the new options will be one with non-fat milk and sugar-free toppings. Brand consultant Steven Addis says customization gives consumers "ownership" of the product. But, he warns, "If I ever see Frappuccino cereal balls sitting in a bowl of milk, I'll know they've gone too far."

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