Starbucks, Dunkin', Luckin Launch Non-Coffee Drinks

Major coffee chains like Starbucks (SBUX), Dunkin' Donuts, and Luckin Coffee are expanding their menus beyond traditional coffee. This summer, they are launching a wave of fruity refreshers and frozen beverages that contain little to no coffee, aiming to attract consumers who prefer cold and refreshing options.

The Product

Starbucks is introducing a new line of "Refreshers" based on fruit powder and natural caffeine from green coffee extract, but without the taste of coffee. Dunkin' Donuts is launching new frozen fruit drinks, while Luckin Coffee is offering non-coffee options like fruit juices and tea.

Pricing and Availability

Specific prices have not been announced yet, but these beverages are expected to be priced similarly to or slightly lower than traditional coffee drinks. They will be available at all outlets during the summer season.

Competition

These chains face competition from energy drinks and fresh juices, but they leverage their extensive branch networks and customer loyalty.

Potential Impact on the Company

This expansion represents an opportunity to boost sales during peak summer hours and attract a new segment of consumers who do not prefer coffee, potentially increasing revenue and broadening the customer base.