I spotted a news article and read various sources to discover that Starbucks will be rolling out with a new instant coffee called "Via Ready Brew" in the US and Canada during September. The price? While there is no firm price set, they plan to charge USD $2.95 for a "book" of three or $9.95 for a box of 12. Come again? There is no way on Earth I would spend that much for instant coffee, regardless of what brand it is.

A Mistaken Assumption?

Apparently, Via Ready Brew had a successful introduction in Seattle (the home of Starbucks) and some places in the state of Illinois. Each packet is equivalent to one cup of Starbucks coffee, making each cup of "instant coffee" more expensive than people pay for the current top brands.

I personally think they're assuming too much. After the novelty wears off, I'm guessing they'll have excess product on the shelves and will start putting it on sale just to clear their inventories. Even if they sell it in the regular Starbucks coffee shops, I predict sales will be lukewarm at best.

Why do I think this way? Most people who can afford to drink coffee at Starbucks are looking for hot coffee prepared in a unique way. They're not looking for instant coffee which won't be any better than the best instant coffee already on the market. Now, I don't know what the "best" instant coffee brands on the market are, but I'm willing to guess they're the most expensive brands found at grocery stores. I speak of brands like Folgers and Nescafé.

Folgers Coffee Crystals

I don't pay attention too much to names on the labels, but I can't help remembering the commercial advertisements on TV. Things like "it's mountain grown, the freshest kind" and "we've secretly replaced their gourmet coffee with Folgers coffee crystals" readily come to mind.

I don't know what the current price is, but I guarantee you it's a jar for less than $9.95 and a lot more than 12 cups.

Nescafé Taster's Choice

My parents always drank Taster's Choice instant coffee, long before I knew it was a label from Nescafé. They marketed it as freeze-dried coffee to seal in the flavor. Ho-hum, it doesn't taste any better than Folgers, but it's around the same price.

When I buy instant coffee, I buy Nescafé Classic, which is a coffee powder. It's around 30 cups for about $4.25 a jar. One of my relatives gave me a jar of Nescafé Red Cup, which is coffee granules instead of powder, but I really couldn't tell the difference in taste.

A Huge Instant Coffee Market

Who can blame Starbucks for trying to get a chunk of the $17 billion in annual revenue generated by instant coffee sales? I don't, but I think they're going about it the wrong way. Going up against the longtime favorites, two of which I mentioned, is going to be a difficult task at the prices they're planning to charge.

I'm no expert, but I believe most instant coffee buyers are grocery shoppers, not coffee shop regulars. Only time will tell, but I believe we'll see the results of their efforts within six months. Prices will either come down or sales will stop. That's my prediction and I'm sticking to it.

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