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New Starbucks Kombucha Drinks Added to Grocery Stores

SBUX stock was down about 1% Friday

By Karl Utermohlen, InvestorPlace Writer

http://bit.ly/2KIjynS

Starbucks (NASDAQ:SBUX) announced that the company is adding kombucha drinks to be sold at grocery stores.

Starbucks Kombucha Drinks
Source: Shutterstock

The coffee giant said that it will be bringing the popular fermented tea to grocery stores as it hopes to win big with its millennial consumers. The chain will be offering six flavors of kombucha through its Evolution juice brand, adding that the drinks have already started shipping to grocery stores and natural retailers in select cities.

The cold-pressed drink is among the most popular beverages in the world right now as it is a probiotic option that has a kick to it and Starbucks is hoping to capitalize on the budding success of kombucha. The chain added that “consumer interest” of the drink increased to $1.2 billion last year, soaring nearly 40% year-over-year.

The company has no plans to add kombucha drinks to its stores just yet. Nevertheless, the move could be a profitable one as Starbucks has had its fair share of struggles lately and CEO Kevin Johnson noted that less and less customers are buying sugary drinks.

Instead of selling the calorie-packed Frappuccinos, the company is seeking to appease consumers with healthier drinks. Its Evolution kombucha drinks are low in calories, amassing 3 to 7 grams of sugar depending on the flavor.

The drink will roll out in New York City, Boston, Chicago, Los Angeles, San Diego, San Francisco and Seattle before expanding.

SBUX stock fell about 1% on Friday following the company’s news.


Article printed from InvestorPlace Media, https://investorplace.com/2018/08/starbucks-kombucha-drinks-sbux/.

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