Starbucks Corporation, Dunkin Brands Group Inc, and Boston Beer Co Inc Hop on Seasonal Drink Trend

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Boston Beer (SAM), the brewer behind the Samuel Adams brand, has grown by leaps and bounds in recent years. SAM stock is up nearly 500% in the past five years, and the stock wouldn’t be where it is today if the company didn’t execute well on an important yet understated part of its strategy: selling seasonally branded beverages.

starbucks corporation dunkin brands group inc boston beer co inc chestnut praline latteStarbucks (SBUX) and Dunkin Brands (DNKN) could stand to take a page from SAM’s playbook, and according to a recent news release from Starbucks, it’s already on top of it.

The Seattle-based coffee retailer announced that it would be releasing its “first new holiday handcrafted beverage in five years” this holiday season. It’s called the Chestnut Praline Latte, and you can expect coffee fanatics to give it a shot (or a double shot) this winter.

SBUX isn’t new to the idea of seasonal offerings. Its autumnal Pumpkin Spice Latte has sold hundreds of millions of cups since its introduction just more than a decade ago. But the last thing Starbucks wants to do is rest on its laurels in what Time has described as “the age of Peak Pumpkin.”

If the transition from the Pumpkin Age to the Chestnut Praline age is a smooth one, that could help SBUX remain in its long-term uptrend.

starbucks corporation dunkin brands group inc boston beer co inc chestnut praline latte

“Eggnoggin’,” far right, is the newest flavorful holiday innovation from DNKN

One of Starbucks’ competitors, Dunkin’ Donuts, is also switching up its holiday offerings a little. DNKN has added “Eggnoggin'” to a roster that already includes Pumpkin Spice and Apple Pie coffee blends.

The idea is the same: Bring something new to the table in the holiday season and give customers a reason to keep coming back. Rinse and repeat next year.

If executed well, the strategy could be a boon to DNKN stock, which is off by 6% year-to-date.

Because they’re smaller companies, SAM stock and DNKN stock (at $2 billion and $5 billion market caps, respectively) can see more meaningful effects from small tweaks in the product mix. SBUX, at $56 billion, can’t necessarily count on the new Chestnut Praline Latte to take its business to the next level … but even incremental improvements in efficiency offer greater opportunities for growth.

So while the new Chestnut Praline Latte might not drive SBUX through the roof, it should be eagerly awaited by plenty of diehard caffeine addicts … and help keep the Starbucks stock train moving forward.

As of this writing, John Divine did not hold a position in any of the aforementioned securities. You can follow him on Twitter at @divinebizkid.


Article printed from InvestorPlace Media, https://investorplace.com/2014/10/starbucks-corporation-dunkin-brands-group-inc-boston-beer-co-inc-chestnut-praline-latte/.

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