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Starbucks vs Nestle is Only a Rumor of War and Shouldn't Be More

June 25, 2009

Analysis of:Friends don't let friends overspend on coffee | smartchoice.tasterschoice.com

Nestle has launched an aggressive response to Starbucks' move into instant coffee. Starbucks should not rise to the bait.

Starbucks May Win Back Convenience Sector Customers with Introduction of Instant Coffee

February 17, 2009

Analysis of:Starbucks Takes Plunge Into Instant Coffee | online.wsj.com

Daily consumption of instant coffee among adults in the U.S. has languished around 7% since 2001, down from a high of 25% throughout the 1970’s and early 80’s. Coffeehouse customers say convenience and price are just as important as quality. So, there is an opportunity in the marketplace for a better tasting instant coffee, which is relatively inexpensive to produce, requires no barista to prepare, and results in little to no waste. Instant coffee represents a potentially high margin new revenue driver for Starbucks.

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