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February 18, 2015

Starbucks Now Delivers

By Laura Brodbeck, Benzinga
Starbucks Corporation (NASDAQ: SBUX) is continuing its push to attract customers with a more advanced coffee palate by offering an upscale subscription service that will deliver 8.8 ounces of special batch coffee to customers’ doors each month.
The new service follows the opening of the first ever Starbucks tasting room where customers can sample rare coffees and learn about the brewing process.
Starbucks Follows Small Batch Trend
The subscription service appears to be Starbucks’ response to changing consumer habits. Back in December, the company announced plans to expand its reserve coffee options, which are typically sold in stores for a limited time.
The rise in popularity of small batch offerings has been apparent in every industry from whiskey to beer, and Starbucks is looking to capitalize on the growing desire for new, specialize offerings.
Premium Price Tag
Unlike rival Dunkin’ Brands Group Inc’s (NASDAQ: DNKN) just under $100 per year coffee subscription offering, Starbucks’ subscription service comes at a hefty price—$24.99 per month or $288 for an entire year.
But Starbucks promises that the coffee will be worth it; select beans will be artfully roasted at the company’s tasting room and roastery location in Seattle and are guaranteed to reach customers within five days. 
A New Direction For Starbucks
Last year, Starbucks announced that 2015 would be a year of change for the company as it tested new store layouts and a change up in its product offerings.
In addition to focusing more attention on premium coffee offerings, Starbucks is also planning to add alcoholic beverages to menus in select stores in an effort to drive evening traffic.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.

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