Starbucks revamps bakery food ingredients
LOS ANGELES (Reuters) - Starbucks Corp, which has tried for years to jump-start a much-criticized food division, plans to revamp its menu at the end of this month to
lure health- and cost-conscious consumers.
On June 30, the world's top coffee chain will begin selling baked goods without high-fructose corn syrup or artificial flavors and dyes, and will introduce salads and other items.
"Food has been the Achilles' heel of the company ... That statement will be long buried after we launch this program," Michelle Gass, Starbucks' executive vice president of marketing, told Reuters on Tuesday.
The new campaign -- which will be promoted with the tag "Real Food. Simply Delicious" -- follows last year's health and wellness push that added food like oatmeal, smoothies and a protein plate to Starbucks' repertoire.
The ingredient changes, which also include removing preservatives where possible, will affect about 90 percent of the baked goods Starbucks sells and are part of the coffee chain's ongoing efforts to appeal to increasingly health-conscious consumers as recession has damped spending on little luxuries like lattes.
Food prices will not rise as a result, Gass said.
Further, this summer in Dallas, the company is testing a Frappuccino formula that Gass says mirrors what the company is doing with food.
Starbucks' latest move lands as fast-food chains like McDonald's Corp sell more coffee and cappuccinos.
Food accounted for 17 percent of sales at company-operated Starbucks cafes in its fiscal year ended September 2008, up from 15 percent in fiscal 2006.
HEALTH AND WELLNESS
High-fructose corn syrup, a commonly used and relatively inexpensive sweetener in foods ranging from sodas to hamburger buns, has been a lightning rod in the obesity debate.
Nutritionists urge people to restrict calories and focus on natural over processed foods that include preservatives, artificial dyes and flavors and high-fructose corn syrup.
"There is a push toward more natural types of ingredients," said McAdams Wright Ragen analyst Dan Geiman, who noted that companies like Pepsi have introduced new soda products made with cane sugar.
Starbucks' "belief is that health and wellness is a unique opportunity," said William Blair & Co analyst Sharon Zackfia. Continued...
