Starbucks To Launch Olive Oil-Infused Coffee Line In Select Markets: Transformative Or Tastebud Challenge?

Starbucks Corporation (NASDAQ: SBUX) said it is launching a “transformational innovation” in the form of coffee infused with a spoonful of cold-pressed extra virgin olive oil.

What Happened: The Seattle-based coffee chain said the new line of coffee would be called Oleato and is set to launch in Starbucks stores in Italy on Feb. 22.

The beverages in the line include Oleato Caffè Latte, Iced Shaken Espresso, and Golden Foam Cold Brew.

The company will introduce the beverages in select markets around the world beginning with Southern California in the United States in the spring.

Later in the year, olive oil-infused coffee drinks will be available in Japan, the Middle East, and the United Kingdom.

“Oleato represents the next revolution in coffee that brings together an alchemy of nature's finest ingredients – Starbucks arabica coffee beans and Partanna cold pressed extra virgin olive oil,” said Starbucks CEO Howard Schultz.

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Why It Matters: Starbucks said that the Partanna created a “highly curated blend” of extra virgin olive oil to pair with its coffee.

The three main Oleato drinks to contain the oil include Caffè Latte which will be made with oat milk.

The company said that in select markets, customers will be able to add a press or equivalent of a spoonful of olive oil as customization to certain drinks. 

Touching on customization, Starbucks said “Golden Foam” containing olive oil can be added on top of hot and cold beverages.

Price Action: On Tuesday, Starbucks shares closed 2.2% lower at $104.78 in the regular session, according to data from Benzinga Pro.

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