Seattle-based coffee chain CEO Kevin Johnson reveals cold beverage sales continue to soar in the US, especially among younger consumers
Starbucks CEO Kevin Johnson has revealed cold beverage sales continue to soar in the US | Photo credit: Starbucks
Starbucks has revealed spring and summer cold beverage sales significantly outpaced hot drinks across the US, accounting for 74% of total beverage sales in its fiscal third quarter ended 27 June.
"We continue to see strong demand for Starbucks Cold Brew, Nitro Cold Brew, and Starbucks Refresher beverages, while iced shaken espresso alone contributed more than a third of the iced espresso growth in the quarter," said Starbucks CEO Kevin Johnson on an earnings call with analysts.
World Coffee Portal data shows cold beverages are a year-round US coffee shop staple. Even in winter months, 41% of US consumers surveyed purchased iced beverages out-of-home.
In a separate interview with Yahoo Finance, Johnson highlighted the significant popularity of cold beverages among younger consumers “in the Millennial and the Gen Z cohorts”.
Starbucks’ sales continue to recover in the third quarter of 2021 amid the easing of Covid-19 trading restrictions globally.
In the 13 weeks ended 27 June, the coffee giant reported a 78% increase in revenues to $7.5bn compared to the same period in 2020. The world’s largest coffee chain also reported $1.1bn profit compared to a $678.4m loss in the same period for 2020.