Thursday, June 26, 2014

Starbucks Adding Fizzio Hand-made Sodas to 3500 Locations

Last year, Starbucks began test marketing hand-made sodas in Austin and Atlanta. Apparently, the response was good, since today the coffee and drink giant announced the expansion of the program to 3500 locations across the American Sun Belt.  

The Fizzio sodas start by steeping a cheesecloth bag of flavors and spices in hot water, like a tea.  Then a new machine developed by Starbucks carbonates the flavored water.  The made-to-order drink takes about 85 seconds, and can be customized to the strength the customer prefers.  The drink price varies by location, but in Los Angeles a tall Fizzio will go for $2.45.

Hunter Communications Original News Source:
Detroit Free Press

Link to article:

Excerpt: "Starbucks is about to make a cold — and carbonated — calculation.

On Tuesday, the designer coffee kingpin will try to become a designer soft drink titan, too, with the launch of three flavors of Fizzio Handcrafted Sodas made by baristas at more than 3,000 locations across the U.S. Sunbelt. It’s a carefully calculated bid to drum-up afternoon business and evolve yet another beverage specialty.

If it works, Starbucks will have given folks yet another reason to willingly pay a premium for beverages that are part show and part show-off.

'We are changing the game in terms of how to get a carbonated drink,' says Josh Fine, brand manager for Fizzio. 'Like what Starbucks did to coffee 40 years ago, we think we can do in the carbonation space.'

The sodas have Starbucks pricing: about $2.45 for a 'tall.' (A 'tall' coffee goes for about $1.80.)

The same baristas who put on a show making lattes and espressos now will go through lots of fizzing and popping to make you a root beer, ginger ale or lemon ale. And get this: They are caffeine-free.

It only takes about 85 seconds for a barista to make a Fizzio drink, so they won’t result in long lines, says Fine. And while the machines are noisy, he says they will add — not subtract — to store ambiance. Starbucks won’t say when the sodas will be in all stores.

For Starbucks, it’s about getting a toehold in the $400 million global carbonated beverage market. While carbonated beverage sales have declined in the U.S. for years, Starbucks figures it can lure nutrition-conscious Millennials with sodas that have the fizz but no artificial preservatives or additives, and no high-fructose corn syrup.

'Adding new drinking occasions is the key to (Starbucks) growth,' says Michael Silverstein, senior partner at the Boston Consulting Group. The company also is branching into tea with its purchase and expansion of the Teavana brand."

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