The multinational reported Q1 2014 sales of $4.2bn (+12% year on year), with consolidated operating income up 29% to $814m, with growth in all three core territories: Americas and the US (+5%) China/Asia Pacific (+8%) and EMEA (5%).
Discussing Starbucks’ in-store innovation, Schultz identified “premium hand-crafted, cold-carbonated beverages” as products that could drive food attachment a key area of interest and innovation for the multinational, after successful tests in Atlanta, Austin, Japan and Singapore.
This despite a Euromonitor International prediction that CSD volume sales in the US will fall 1% overall from 2013-2017, and a prognostication that their long-term future is 'bleak' given consumer health concerns.
“This category is by far the fastest-growing segment of the $140bn global carbonation industry. And results of tests we conducted in stores in select US and Asian markets last summer exceeded our most optimistic expectations,” Schultz told investors and analysts, with Starbucks set to strike out into the category despite the US soda sales decline accelerating since 2011.
“The excitement created as barristas carbonated our customers’ favorite drinks and the fantastic innovation and interaction that followed, cemented our interest in the category, and the opportunity to elevate the cold carbonation category with a premium hand-crafted offering in our stores,” he said, noting that it could drive food attachment.