Tuesday, October 18, 2011

Starbucks going Blonde...

Starbucks Corp (SBUX) is going "Blonde," expanding its coffee lineup with its lightest roast to date in a move aimed at wooing more customers and capturing a bigger share of the U.S. coffee market.

The world's biggest coffee company is known for its dark roasts, which have prompted some critics to say the chain's coffee tastes burned. The new, lighter roast unveiled on Tuesday is milder in body and acidity than Starbucks' traditional coffees and the company expects it to appeal to a broad audience.

Mass-market competitors McDonald's Corp (MCD) and Dunkin' Donuts (DNKN) offer milder brewed coffees and in recent years have added lattes, mochas and other sorts of "fancy" espresso drinks popularized by Starbucks.

"We think this is a big opportunity," Jeff Hansberry, president of channel development for Starbucks, told Reuters. 

According to Starbucks research, more than 40 percent of U.S. coffee drinkers -- or about 54 million consumers -- prefer a lighter roast coffee.

Additionally, nearly 71 percent of all packaged coffee sales in the grocery aisle are either light or medium roasted coffee.

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