The Fate of Beer at Starbucks

So what ever happened to the Grande Americana Double IPA with Extra Foam?

While not outright abandoning the idea altogether, Starbucks Coffee currently has made no announcements to expand its beer service beyond its two Seattle, WA, concept locations, 15the Ave Coffee & Tea, and Roy Street Coffee & Tea.

You may recall during the past two years that Starbucks underwent a sweeping Starbocalypse where a large portion of its over 7,000 locations were shut down in anticipation of the recession and upon a re-examining of a business model centered around canvassing every street corner with caffeine induced opportunities to purchase James Taylor albums and books chronicling fraudulent stories about war torn African children.

Evil Clowns

Starbucks execs also recognized an even greater threat to their $4.00 cup of coffee business; Yes, the $1.00 cup of coffee business. McDonalds began selling its McCafe, which not only was cheaper, but according to customers, also tasted better. This spelled trouble for our friend, the little mermaid coffee lady with two tails.

Annoying Clowns. Preferred by more Americans over James Taylor.

Problem: Solution. Beer: Beer.

So Starbucks did what we all do during difficult times; it turned to alcohol. In summer of 2009 plans were announced to launch beer and wine services beginning at the new 15th Ave Coffee & Tea concept coffee house, and to then expand into other locations. According to a November, 2009, news release that is still posted, 10 more concept locations were also lined up, all apparently planning to serve beer. And keep in mind, Beer was only slated for the concept locations, not the usual stamped locations bustling with aspiring novelists and soccermoms.

But like all decisions influenced by alcohol, the decision to serve beer might have been a little too optimistic. Now according to Starbucks, in what represents a step backwards, there are no "announcements" (as opposed to "plans") to expand beer service beyond the two concept locations nestled deep within Seattle. And within those two locations, Starbucks states that it focuses on serving Pacific Northwest regional brews. While the 15th Ave C & T website is silent on the beer menu, Roy Street's site shows that of the 8 Beers on the menu, there are 3 beers that could be considered local crafts. They are Snoqualmie Wildcat IPA, Steelhead Scotch Porter, and Full Sail Wassall.

Craft Beer, a Clown's Natural Enemy

Starbucks should do what Starbucks does best, sell a lifestyle. And by launching more concept locations that individually reflect the specifics of the regional markets, they will find overlaps in consumers' demand for good coffee and local craft beers. It all appeals to the younger artisan loving "Millenial" types who, loving all brands they find sincere, genuine and local, would appreciate the change from the one-size-fits-all stamp coffee locations. To attempt to serve Beer at its stamp locations would require location specific contingencies of which the energy needed to sort out would be better spent on just exploring concept locations. Of course, Starbucks is smart enough to know this already.

Besides, Ronald McDonald's European cousin (Ronaldo?) has been serving beer for quite some time now. McDonalds already has the knowhow for adding beer services to its stamp locations and could easily outdo Starbucks in that game winning on every front from logistics, legal, and marketing. But McDonald's is limited to serving regular common denominator beers with its regular common denominator menu.

Ronaldo McDonald, winner

What Starbucks can do that McDonalds just couldn't, is to offer region specific craft beers that appeal to those who like to fancy themselves as having discriminating tastes. This would be a huge opportunity for small craft brewers throughout the US because, as opposed to trying to pry into regular bars, restaurants, and groceries that are dominated by regular beer distribution issues, they would have a ready made market backed by a somewhat strong corporate player.

Brewers Take Note

It would be wise for craft brewers to pay close attention to Starbucks' plans because any concept location would likely have only a small menu offering of the craft beers. So it would pay off to get in especially early on any opportunity. According to Starbucks, the decision of what Beers to place on the menu rests with the concept locations' management, who, of course, rely on customer choice.

So cheers to Starbucks moving forward with its concept locations and cheers to the little, two-tailed, mermaid coffee lady. May she one day be a two-tailed, mermaid beer lady as well.