Photo credit: www.cnbc.com

Starbucks to Phase Out Oleato Line of Olive Oil-Infused Beverages in the U.S.

Starbucks is set to discontinue its Oleato line of olive oil-infused drinks from U.S. locations by early November. This decision reflects a shift in the company’s strategy, as newly appointed CEO Brian Niccol aims to simplify the menu offerings and refocus on the core aspects of Starbucks, according to a company spokesperson.

The move to remove the Oleato beverages was in the works prior to Niccol’s arrival in September but resonates with his broader plan to revitalize the brand. Bloomberg first highlighted the news regarding the drinks’ exit from the U.S. market.

As Starbucks prepares to announce its fiscal-fourth quarter earnings, the coffee giant has already indicated declining sales, marking a third consecutive quarter of drop. The downturn has been attributed to weak demand in key markets such as the U.S. and China.

Wall Street analysts express optimism regarding Niccol’s leadership and a potential departure from the strong influence of former CEO Howard Schultz, who originally conceptualized the Oleato drinks. This line featured beverages that combined Partanna olive oil with popular drinks like Caffe Latte, Iced Shaken Espresso, and cold foam. Baristas incorporated the olive oil by steaming it with oat milk for lattes and shaking it with espresso.

The inspiration behind Oleato came from Schultz’s experiences during a trip to Italy, where he observed local customs that included consuming olive oil daily. He adopted this practice himself and envisioned integrating olive oil with Starbucks coffee offerings, referring to this innovation as “alchemy” and a potential “game-changer.”

The term Oleato translates to “with oil” in Italian, emphasizing its main ingredient. This product line was initially introduced in Italy before making its way to Southern California in the spring of 2023, followed by a nationwide launch in January 2024.

However, the reception among consumers has not lived up to Schultz’s expectations. Initial feedback from U.S. customers was largely skeptical, with some social media users reporting adverse effects, describing gastrointestinal discomfort after consumption.

Despite its discontinuation in the U.S., the Oleato drinks will continue to be available in Starbucks outlets located in China, Italy, and Japan.

Source
www.cnbc.com