Starbucks Expands Coconut Water Beverages As It Focuses On Wellness

U.S. coffee chain Starbucks (SBUX) is expanding its test of coconut water beverages as it pushes further into the health and wellness space.The Seattle-based company says it plans to test its Coco Matcha and Coco Cold Brew drinks in more than 400 stores across the U.S., starting with New York City, Los Angeles, and Chicago. The drinks layer matcha foam or cold brew foam over coconut water and are marketed as a healthy beverage option for consumers. The drinks were first tested in New York City as a part of Starbucks’ “Starting Five” program that is exploring new ideas and seeking feedback from baristas and customers.The push into wellness comes as Starbucks targets younger consumers who want customized cold drinks and healthier options.It also comes as Starbucks tries to revive its slumping sales, particularly in its home market of America. The company has been in decline since the end of the Covid-19 pandemic. Starbucks is also undertaking a “Back to Starbucks” turnaround plan under new Chief Executive Officer (CEO) Brian Niccol, featuring cafe renovations and menu changes. As the strategy takes shape, Starbucks executives have said the company has seen increases in satisfaction levels among younger consumers in the Gen Z and Millennial demographics.SBUX stock has declined 3% this year to trade at $89.51 U.S. per share.