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Starbucks To Sell Nitro Coffee Out Of The Tap At All Stores

From: boston.cbslocal.com

(CNN) — Nitro is coming to a Starbucks near you.

Every company-operated US Starbucks location will offer the nitrogen-infused cold brew coffee, which comes out of a tap, by the end of next year to meet customer demand, the company said on Thursday.

The expansion is part of Starbucks’ plan to sell more products next year — especially as Frappucino sales slip.

Frappuccinos used to help drive sales for Starbucks. But in recent years, increasingly health-conscious customers have turned on the sugary blended beverages.

Cold drinks like iced espresso, cold brew and Refresher juice drinks have driven more than 80% of Starbucks’ beverage growth over the last two years, said Roz Brewer, chief operating officer for Starbucks, during the company’s investor day presentation.

“As you know, our primary softness has been centered around Frappuccino,” Brewer said on Thursday.

Frappuccino drinkers tend to treat the drink as a one-off purchase, she noted. But customers are more loyal to cold brews and iced coffees. “These categories are more habitual and create more brand affinity,” she said.

The company is not moving away from Frappuccinos, Brewer noted. Starbucks is just offering new options for the blended drinks and expanding its cold drink portfolio.

Starbucks started selling Nitro in its Roastery and Tasting Room in Seattle. The brew was such a hit that Starbucks expanded it to 500 Starbucks stores later that year.

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