Starbucks launching everyday coffee in U.S.

Mon Apr 7, 2008 11:05pm BST
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LOS ANGELES (Reuters) - In a bid to reinvigorate lackluster U.S. traffic, Starbucks Corp (SBUX.O: Quote, Profile, Research) will introduce a new, everyday brew called Pike Place Roast on Tuesday and for 30 minutes will hand out free 8-ounce (227 gram) samples.

Free cups of the new coffee, which the company said has a smoother flavor and finish, will be available starting at 9 a.m. on the West Coast and at noon on the East Coast at all of Starbucks' roughly 7,100 company-operated stores in the United States.

Andrew Linnemann, Starbucks master coffee blender, said in a conference call with reporters on Monday that Pike Place and Pike Place decaffeinated will be offered daily, along with a third bold-style coffee from a rotating list.

Starbucks had previously served a different coffee each week, which Linnemann said was confusing to some customers. With Pike Place, Starbucks will deliver drip coffee that is the same, regardless of the day or location.

Linnemann declined to reveal the source of the beans used in the Pike Place blend, which will sell for $9.95 per pound (454 grams).

Pike Place blend, named for the company's famed Seattle outpost, will roll out in domestic markets only, Linnemann said, adding that Starbucks is evaluating what brews will be best for international markets.

Traffic in Starbucks' U.S. stores has been slowing in recent months, amid a broad-based economic downturn and stiffer competition from companies such as McDonald's Corp (MCD.N: Quote, Profile, Research), which is aggressively targeting the specialty-brewed coffee market that Starbucks helped establish.

Last year, McDonald's efforts got a boost when Consumer Reports rated the hamburger joint's drip coffee best.

Tasters from the consumer magazine said of McDonald's brew: "Decent and moderately strong. Although it lacked the subtle top notes needed to make it rise and shine, it had no flaws."  Continued...