Starbucks and PepsiCo Launch Ready-To-Drink Nitro Cold Brew

    Industry News | February 27, 2020

    Starbucks and PepsiCo announced the launch of new Ready-To-Drink (RTD) Starbucks Nitro Cold Brew, entering a high growth segment of the RTD Cold Brew category. This is the latest product to join the ranks of successful innovations developed since Starbucks and PepsiCo formed the North American Coffee Partnership (NACP) in 1994, which includes Bottled Cold Brew, Bottled Frappuccino chilled coffee drink, Starbucks Tripleshot beverages, Starbucks Doubleshot beverages, Multi-Serve Iced Coffee and more. Over the past 25-plus years, the NACP has grown to more than $2 billion in retail sales, and Starbucks is the leader in the RTD coffee category with 82 percent share.

    “Through the NACP, Starbucks and PepsiCo created the RTD Coffee category 25 years ago and have consistently delivered leading innovation to our consumers,” says Nik Dhodi, Starbucks senior director, brand management. “To build on the success of Starbucks Nitro Cold Brew in our retail cafes and meet the evolving needs of consumers in the category, we are excited to launch a line of RTD Starbucks Nitro Cold Brew beverages to expand the reach to even more people.”

    While RTD Nitro Cold Brew isn’t new to the marketplace, Starbucks is one of the only coffee companies to bring it to scale, and the brand sees a great opportunity to further expand the RTD Nitro Cold Brew market that is growing at a rate of almost 40% per year.

    RTD Starbucks Nitro Cold Brew arrives on the heels of the popular Nitro Cold Brew in Starbucks stores, representing customer-centric innovation for Starbucks. The brand first introduced Nitro Cold Brew at Starbucks Reserve® Roastery in Seattle in July 2015, and due to popularity, Nitro Cold Brew scaled to 500 U.S. stores less than one year later. Last year, Starbucks reached national availability of Nitro Cold Brew in U.S. company operated stores.

    The new product is available in three flavors, two of which are inspired by handcrafted beverages served at Starbucks stores: Black, Vanilla Sweet Cream and Dark Caramel. The Cold Brew is infused with nitrogen, and the moment the can is opened a rush of microbubbles delivers a delicious, velvety smooth taste. It can be found nationwide for a suggested retail price of $3.99 at convenience locations and $3.49 in grocery.

    The NACP has more café favorites available in RTD format, including the new Starbucks Iced Latte Caramel Macchiato that brings the fan-favorite flavor available in cafés since 1996 to your home or on-the-go. The NACP has also introduced new flavors to various existing product platforms this year, including: Starbucks Frappuccino Brown Butter Caramel with a Splash of Cold Brew, Starbucks Iced Espresso Classics White Chocolate Mocha, Starbucks Tripleshot™ Energy Dark Roast, Starbucks Doubleshot Espresso Americano, Starbucks Medium Roast Subtly Sweet Iced Coffee, and 40 oz. Starbucks Cold Brew Black.

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