Starbucks Pins Cold Drink Popularity to Generational Shift But Still Focusing on Hot Drinks

Starbucks attributes its portfolio of cold beverages to a shift in generational taste preferences in response to a question on its earnings call. An analyst, who estimates that since 2016 US cold drink sales have grown while hot drink sales have declined, asks if Starbucks has less of an everyday hot drink customer and more of a new type of customer who comes in less frequently and opts for cold drinks. CMO Brady Brewer notes that the coffee chain doesn’t see a trade-off in frequency between cold beverage customers and hot beverage customers. He adds that with cold beverages there are infinite possible customizations, offering a great opportunity. “On hot beverage, I would say we’re not leaving that customer behind. We’re continuing to innovate on hot beverages,” says Brewer.

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