Starbucks has gotten a lot of attention—and revenue—from its Frappuccino drinks. Now, with Frappuccino sales down, Starbucks plans to push other cold drinks to make up the missing income.
On its third quarter conference call Thursday, Starbucks Chief Operating Officer Rosalind Brewer said the beverage company will stress chilled drinks such as nitro cold brew draft coffee, its fruity Refreshers, iced tea and cold brew coffee.
It's crucial for Starbucks to make up the lost Frappuccino revenue, because it accounts for 11% of Starbucks U.S. revenue.
All those categories are up, says Brewer, and she said nitro cold brew is "really resonating with our male millennials." A reason could be that Starbucks is marketing the nitrogen-infused coffee much like craft brewers do beer, with baristas handing out samples and pulling it from a draft spigot.
But sales of the other cold drinks are "not enough yet" to offset the decline in Frappuccino sales during the first three quarters of its fiscal 2018, compared with last year, Brewer said.