Nestlé and Starbucks have announced the introduction of Starbucks Coffee Craft concentrate, representing a strategic expansion of the Global Coffee Alliance into the cold coffee sector. The product is a premium concentrated coffee utilizing 100% Arabica beans, designed to provide a "bar-quality" experience within the at-home retail channel.
The launch is timed to capitalise on the rapid acceleration of the cold coffee segment, which industry forecasts project to exceed $4 billion in value by 2030. By introducing a concentrate format, the alliance aims to meet rising consumer demand for personalisation and convenience.
The cold coffee category continues to be a primary driver of global growth within the beverage industry. The launch of Starbucks Coffee Craft allows Nestlé and Starbucks to build synergies across multiple formats and channels, reaching a broader demographic of coffee drinkers who prioritise iced beverages.
Ethel Touitou, Nestlé’s Global Category Lead for Starbucks, noted that the concentrate format makes it easier for consumers to create iced beverages at home. The product is engineered to be compatible with water, milk, or plant-based alternatives, allowing for a variety of preparations, including iced Americanos and macchiatos.
Technical Innovation in Concentrate Formats
Starbucks Coffee Craft debuts in two distinct varieties designed to appeal to both black coffee purists and flavour-seeking consumers:
Rich Black: A smooth, authentic espresso-style base.
Signature Caramel: A flavoured variant designed for indulgent, speciality-style beverages.
The product utilises specialised manufacturing processes to maintain flavour integrity in a concentrated form, ensuring the final drink reflects the standards of the Starbucks coffeehouse experience. This innovation addresses the growing "at-home barista" trend, where consumers seek professional results with minimal equipment or preparation time.
Global Coffee Alliance Operational Impact
The launch underscores the continued impact of the Global Coffee Alliance, a partnership established eight years ago. The alliance combines Nestlé’s global manufacturing capabilities and distribution reach with Starbucks’ brand equity and consumer affinity.
Since its inception, the partnership has scaled Starbucks-branded products into nearly 80 markets worldwide. Nik Dodi, Vice President of the Global Coffee Alliance at Starbucks, stated that the partnership allows the brand to reach new occasions and consumers beyond traditional retail locations. By diversifying into concentrates, the alliance is moving beyond standard bagged beans and capsules into more specialised, high-growth liquid formats.
Rollout and Global Availability
Starbucks Coffee Craft is following a phased international rollout strategy:
Current Year: Launching in Japan, South Korea, and the UK.
2027: Expansion into broader European and Asian markets.
For retailers, the introduction of premium concentrates provides an opportunity to drive value in the coffee aisle by offering a high-margin alternative to standard instant coffee and ground beans. The concentrate format also optimises shelf space while catering to the specific seasonal demand for iced coffee during the spring and summer months.
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