Is Olive Oil-Infused Coffee the Next Pumpkin Spice Latte?
Stocks
February 22, 2023
The next big thing in coffee? Olive oil.
Starbucks is launching Oleato — a new line of coffee including an oatmilk latte and cold brew infused with extra-virgin olive oil.
- Arriving in Italy this week — then in the US in the spring.
- Starbucks expects it to be a significant part of their syrups, foams and modifiers biz — which makes ~$1B annually.
Interim CEO Howard Schultz said, “this will be the most significant, transformative thing we’ve done in decades” (WSJ).
Why olive oil? Studies say a Mediterranean diet (in which olive oil is a key ingredient) cuts the risk of heart disease and stroke — and consuming higher amounts of olive oil reduces the risk of some cancers and dementia. The trend gained traction on TikTok last year as “drink olive oil.”
One last hurrah: Schultz came out of retirement last year (for the second time) to help turn Starbucks around. But this could be his final creation. A new CEO is arriving in April, and Starbucks will once again be left Schultz-less.
