Starbucks to launch the Oleato… coffee with olive oil!

Milk and sugar in your coffee? Pretty normal… How about some olive oil? Not so much! Well that is exactly what Starbucks are offering in their latest line of beverages!

The coffee giant, with over 30,000 stores in 80 countries around the world, is taking a gamble on adding olive oil in their coffee as a way to separate themselves from the rest in what is proving to be a tough market to crack: coffee loving Italy!

Starbucks are hopeful that the Oleato will be a game changer. They have long struggled in Italy compared to other locations around the world as Italian coffee lovers tend to prefer independent local coffee shops.

The marketing maestros at Starbucks are hedging their bets that many consumers will be intrigued by the new option whilst many may come back for more given the well-publicized health benefits of consuming olive oil – something Italians swear by! In fact, it was on a visit to Sicily by the company’s CEO Howard Schultz which inspired the crazy concept to begin with.

The Oleato will soon be rolled out in other markets around the world including the UK, Middle East and Japan. Who knows if it will take off, but as the old saying goes… any publicity is good publicity!

THINK LIKE AN ECONOMIST!

Q1. With reference to the article above, explain the importance of innovation in a business growing their market share.

Q2. Explain why MNCs like Starbucks are more likely to take risks like the one described in the article.

Q3. What is meant by the phrase ‘any publicity is good publicity’ – how does that link to a company’s sales?

Click here for the source article

TheCuriousEconomist

Recent Posts

Apple Faces Criticism Over New Ad Campaign

Apple's latest advertising campaign, intended to highlight the creative potential compacted into its new iPad,…

1 week ago

Germany Unemployment Forecast for a Decade High

Germany is poised to witness a significant rise in unemployment, reaching levels not seen since…

3 weeks ago

India Set to Overtake Japan as World’s Third Largest Economy by 2025

India is poised to surpass Japan as the world’s third-largest economy by 2025, with a…

3 weeks ago

UK Aiming to Snub Out Smoking For Good

In a bold stride towards public health, the UK Parliament has recently advanced legislation aimed…

1 month ago

China’s Economy Surges with High-Tech Manufacturing Boost

China’s economy demonstrated a stronger-than-anticipated performance at the beginning of the year, primarily fueled by…

1 month ago

CHIPS act to fuel Samsung’s Texas Expansion

In a move to bolster the United States' semiconductor capacity, the CHIPS Act has earmarked…

1 month ago