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Starbucks' Natural Fusions Line Adds Flavor To Retailers' Shelves

  • Ad Age, Monday, September 20, 2010 10:47 AM
Starbucks is rolling out caramel, vanilla and cinnamon coffee beans in a Natural Fusions line for retailers, Natalie Zmuda reports, after having discovered that 60% of its bagged coffee customers were buying flavored coffee from competitors.

Created in partnership with Kraft, the line lives up to Starbucks' standards, according to Michele Waits, director of packaged coffee at Starbucks. That means it's more "coffee forward" than flavored coffees produced by competitors such as Dunkin' Donuts, Millstone and Godiva. Waits says 75% of consumers tested say they intend to buy the product. They tend to skew female, particularly women aged 45-plus.

Morningstar analyst R.J Hottovy believes Starbucks could move the Natural Fusions line into its own stores if it does well on the grocery shelves. "It could develop into a nice revenue stream for the company," he tells Zmuda.

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