Schultz says, "We're entering the energy category," but he declined to be more specific.

Starbucks going back to grinding beans - USATODAY.com

i heard about this from the pepsi guy, but he was very vague

Doesn't coffee give you enough energy already?

Apparetly not....Monster and Rockstar got them too. They seem to be doing very well too

Can't help but think this is good for the category ... pushing EDs even more mainstream and attracting customers who previously stayed arm's length. Am I wrong?

Not trying to speak too soon, though... more thoughts welcome.

Logic, for what its worth in the beverage industry, dictates that if Starbucks is/was to bring in an established energy brand it would be a Pepsi product. The cross marketing of Starbucks Espresso shot with Pepsi more than likely suggest a relationship already exist to move forward with an energy drink.
My take is that anyone who routinely goes into a starbucks and buys a Grande coffee and then switches to an AMP is backing up. Furthermore, would Starbucks be competitive in pricing. What about the risk of turning on customers to new products that they can get elsewhere cheaper?


I further think that Howard Shultz may be denying the fact that a $3 + cup of coffee may be one of the first things a consumer drops when money gets tight. Why pay $3+ for a cup of coffee that I can make at home for pennies???? Then I can dress it up with whatever I like. ( Although I am an old fashioned "black" coffee drinker).
The mortgage payment is set, the car payment is set, the utility bills, phone, insurance, etc are pretty much set on a monthly basis. Of course the consumer is going to cut costs where it is easiest and most expedient on the bottom line.

Some so called luxuries even expensive coffee from
Starbucks can and do have inelastic demand curves.

Demand Curves

Originally Posted by Mr Zabe

Some so called luxuries even expensive coffee from
Starbucks can and do have inelastic demand curves.

Demand Curves

A "Curve" nonetheless!

Eh, i really don't think they need to do this, don't they already have a triple shot expresso or something?

15 or 16 oz energy/coffee can designed to go after, and stop Monster and Rockstar coffee energy drinks. The starbucks brand has a dominant hold on the bottled RTD coffee market, and no doubt wants to keep that hold.