:. Food Industry News


Starbucks Introduces Afternoon Drink Promotion

Source: Reuters
06/08/2008

San Francisco, Aug. 5 - Starbucks Corp began a U.S. promotion Tuesday, offering $2 cold drinks in the afternoon to people who bring in the receipt from the purchase of their morning coffee fix.

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The promotion, which applies to "grande" or medium-sized drinks purchased after 2 p.m., will run through Sept. 2.

Starbucks -- which is closing underperforming U.S. coffee shops, shuffling management and rolling out new products in a turnaround bid -- has seen domestic sales slow as consumers cut back on little luxuries like specialty coffee in the face of a weak economy and rising prices for food and fuel.

Starbucks, which posted its first-ever net loss in the most recent quarter, said the "Treat Receipt" promotion is a response to consumer requests for nationwide promotions.

In San Francisco, for example, the promotion would save a customer about $1.50 on an Iced Caffe Latte. It would also take $2.15 off a Mint Chocolaty Chip Frappuccino.

Brad Stevens, vice president for customer relationship management at Starbucks, said that while the company has often run promotions for new and seasonal products, the weak economy has boosted the appeal of such offers.

"Right now they are more relevant than ever before," he said. "Consumers are really looking for value right now."



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