Starbucks Tests Protein-Topped Beverages To Attract Health-Conscious Consumers

Starbucks (SBUX) is testing protein drinks as part of its menu changes to appeal to a broad audience and boost sales, according to the company.

According to a Bloomberg News report, the new protein drinks will contain at least 15 grams of protein added in the form of powder to any cold foam flavor.

Cold foam is a creamy topping made by blending nonfat milk on top of cold beverages like iced coffees and cold brews.

Chief Brand Officer Tressie Lieberman said the company aims to refresh its menu to feel “relevant, modern, and premium.” She spoke on Tuesday during a Las Vegas event where over 14,000 retail managers gathered for a strategy update with CEO Brian Niccol.

At the event, Niccol indicated that Starbucks aims to establish a presence in the health and wellness category as consumers seek to reduce their sugar intake and derive more benefits from their beverages beyond a caffeine fix.

Lieberman said Starbucks’ menu strategy includes bringing “modern essentials” that cater to evolving preferences, like sugar-free matcha, and to refinining offerings, especially food items, that boost afternoon sales.

Lieberman, who previously worked with Niccol during his tenure as CEO of Chipotle Mexican Grill (CMG), was brought on late last year to oversee marketing and product innovation. The duo also worked together at Taco Bell earlier.

The menu refresh is part of a broader turnaround strategy led by Niccol. Starbucks has seen sales and market value slip as inflation and growing alternatives have curbed consumer spending on premium coffee.

Starbucks shares rose 0.8% on Tuesday. The stock is little changed for the year, underperforming the S&P 500 Index (SPX).

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