Starbucks unveils exciting new drinks to fuel its turnaround strategy efforts
New Protein Lattes: Starbucks’ Strategy to Revitalize Its Brand
Starbucks Introduces Protein Beverages in North America
Starbucks is aiming to revitalize its brand with the introduction of a new line of protein-infused lattes and cold foam drinks, now available year-round across the U.S. and Canada. This strategic move comes as Starbucks aims to arrest a stock decline of less than 7% year-to-date, despite slightly trailing the S&P 500, which has seen a 13% increase in 2025.
Market Analysts See Sales Potential in Protein Trend
Wells Fargo analysts have identified these protein beverages as a significant potential driver for Starbucks’ U.S. sales. According to their projections, these offerings could boost same-store sales by approximately 2.5 percentage points, potentially translating into $720 million if the attach rate reaches 10%. The analysts emphasize that the U.S. market for quick-service protein drinks is valued at around $10 billion, suggesting a substantial opportunity if Starbucks captures even a modest share of this market.
A New Approach to Product Launches
Starbucks’ latest CEO, Brian Niccol, has opted for a “Starting 5” stage-gate method to roll out the protein beverages. This structured approach tests customer demand and operational processes in select coffeehouses before a wider rollout. The strategy aims to improve the likelihood of a successful product launch, a challenge faced by previous CEOs, given mixed results of past beverage introductions.
Potential Impact on Starbucks’ Turnaround Strategy
If successful, the protein initiative could lend credibility to Starbucks’ broader turnaround strategy, which includes store closures and corporate restructuring aimed at generating significant savings. These actions are expected to secure over $175 million in annual earnings before interest and taxes (EBIT).
Challenges and Optimism Amid Share Decline
Wells Fargo cautions that Starbucks still faces notable challenges, including flat North American comps and pressure from rising coffee prices. These factors have prompted a reduction in earning forecasts for fiscal years 2025 and 2026, with execution risks remaining high. Despite these challenges, Wells Fargo maintains a buy rating with a price target of $105 per share, indicating long-term optimism.
Starbucks’ Role in the Protein Craze
This new launch could position Starbucks to benefit from consumer health trends, with data showing that 70% of Americans are seeking to incorporate more protein into their diets. The successful integration of these beverages could mark a significant step in Starbucks’ growth trajectory and bolster investor confidence.
Overall, while Starbucks faces a challenging near-term outlook, its commitment to innovation and adaptation to consumer trends presents a potentially rewarding opportunity. Brian Niccol’s strategic direction appears aligned with evolving market demands, providing hope for a successful turnaround.
