Research Outline

Starbucks VIA Latte

Goals

To identify factors contributing to the underperformance of Starbucks VIA Instant Latte in market, with a specific focus on consumer feedback (positive and negative), relevance, and differentiation from competitors. This information will be used to help develop messaging that may help the brand course-correct.

Early Findings

Starbucks VIA Instant Latte

  • Starbucks VIA Latte was launched in 2014, as an extension to the 2009 launch of the Starbucks VIA Ready Brew coffee line. The VIA line was initially designed to "change the way people drink coffee" by delivering "Starbucks coffee quality in an instant."
  • The VIA Instant Latte line is available in four flavors: Vanilla Latte, Cafe Mocha Latte, White Chocolate Mocha Latte, and Pumpkin Spice Latte, a limited-edition variety linked to the Pumpkin Spice limited-time launch in Starbucks retail channels.
  • Two additional flavors, Peppermint Mocha Latte and Caramel Latte are not highlighted on the Starbucks website but are currently available on Amazon.
  • The Vanilla Latte and Mocha Latte are available on Amazon for $5.36 for a 5 pack. The product is also available in multi-packs and variety packs.
  • The VIA line is available through online channels and in supermarkets. Starbucks entered into a partnership with Nestle in 2018 to help support distribution efforts.
  • Texture, taste, and ingredients are a core element of the Starbucks Latte messaging: "Discover rich, creamy Starbucks lattes made with 100% arabica coffee beans."
  • The positioning also highlights the convenience of the single-serve, instant form, as well as its link to the in-store version (thereby potentially setting up an expectation of comparable taste experience). Specific verbiage includes, "Inspired by Starbucks handcrafted beverages" and "Create great-tasting beverages with these single-serve packets. Enjoy them anytime—in an instant."

Consumer Feedback

Vanilla Latte

  • Messaging on Amazon.com specific to this variety focuses on taste and convenience: "A generous kick of vanilla makes this a deliciously satisfying treat. The recipe is an enticing blend of lighter-roasted beans and vanilla flavor that you can enjoy anytime."
  • The Vanilla Latte receives 4.4/5.0 stars on Amazon, 3.0/5.0 stars on the Starbucks website (12 reviews), and 4.1/5.0 stars on the Walmart website (41 reviews).
  • The commentary among Vanilla Latte VIA triers focuses on taste, texture, and convenience, with a notable number of negative comments comparing the product to the in-store latte. Additionally, some comments addressed ease of dissolving, which may point to some issues with consumer preparation (that potentially could be resolved with more specific instructions).
  • Sample positive comments include, " I think it's a brilliant combination, it is sweet but what do you expect from a vanilla latte? I like that it is NOT overly sweet or sugary. Smooth and perfect blend of coffee, cream, sweetness, and vanilla. YUM!" and "I’ve been dedicated to these vias for quite a few years now. They are flavorful and smooth."
  • Sample negative comments include, "Great for on the road, was not comparable in flavor to a latte you’d get from Starbucks- was disappointed" and "these were not as good as I had hoped. My theory was that since they were Starbucks brand they would be better than more affordable instant flavored coffees. I don’t think they are, I had hoped these would be sweeter and less bitter, and easier to dissolve but they were not."

Caffe Mocha Latte

  • Messaging on Amazon specific to this variety focuses on taste and indulgence: "Our Starbucks VIA Instant Caffè Mocha Latte is an irresistible treat—the perfect union of dutched and natural cocoa and Starbucks instant and microground coffees. Made with dairy, this everyday indulgence is rich and full of depth, a celebration of our handcrafted Starbucks Caffè Mocha."
  • The Mocha Latte receives 4.3/5.0 stars on Amazon (406 reviews), 4.4/5.0 stars on the Starbucks website (126 reviews), and 4.3/5.0 stars on Walmart website (191 reviews).
  • Consumer commentary highlights taste, indulgence, convenience, and price (cost-savings over the in-store version). As with the Vanilla Latte, those who offered more negative feedback felt the product fell short of the comparable in-store flavor.
  • Sample positive comments include, "We love to start our day with coffee or hot chocolate. This gives you the perfect balance of both. We started drinking the Mocha about two years ago and never looked back. This Starbucks is smooth and tasty" and "I love the Starbucks Via Mocha! I mix it with milk instead of water to increase the calcium intake, and I love the mocha flavor. I hope this flavor is never discontinued because it is part of my morning routine."
  • One consumer notes the affordability of the product compared to the in-store version: "I make the Starbucks Mocha via with ice during the hot summer. Very nice treat at a fraction of the price I'd pay going to the Starbucks drive-thru."
  • Negative comments center on taste and texture falling short of expectations of a Starbucks drink. Sample comments include, "This doesn’t taste anything like a Starbucks mocha made at the restaurant. It has a strange aftertaste" and "The flavor of this beverage mix is much more like Swiss Miss hot chocolate than a Starbucks drink. The flavor of coffee is barely noticeable and the texture is fairly gritty."

Other Starbucks VIA Latte Flavors

Social Listening and Consumer Awareness

  • Unmetric, a social media analytics company, highlights the impact Starbucks has when creating "buzz" around its flavor offerings (such as Pumpkin Spice Latte, offered as a seasonal flavor each fall). Starbucks leans heavily on photos, videos, user-generated content, and links to generate awareness and 'buzz' for its product offerings on social channels.
  • A "word cloud", based on Starbuck's social media posts in 2018, indicated that flavors and efforts around social good rose to the top in terms of conversation and engagement, while no mentions of the VIA line were evident.
  • Starbucks typically leverages social channels each year to draw awareness to topics such as their limited-time Pumpkin Spice launch, and this year is no different, with many major media outlets highlighting the impending flavor availability in August. However, an initial scan of Starbuck's social accounts (Facebook, Instagram, and Twitter) indicate the VIA Instant Latte form (of the Pumpkin Spice flavor or otherwise) receives no posts or highlights.
  • A recent social media analysis published on Clemson University's blog (including several reputable sources, such as Business Insider), noted that by September 2, 2020, Pumpkin Spice had over 130,000 mentions on social media. This continues to support the concept that Starbucks flavors (rather than specific forms) tend to receive social media attention, with top mentions in this analysis including "Pumpkin" and "Spice". The term "latte" did surface at a slightly lower level, but "VIA" or "Instant" were not observed in relation to this flavor.
  • Pumpkin Spice VIA Instant Latte was highlighted in "Starbucks Stories" on the company's website, as one of a number of offerings in the seasonal Pumpkin Spice line.
  • According to Marketing Dive, only 20% of customers are aware of seasonal variants (despite advertising spend), which indicates that potentially even fewer may be aware of the specific VIA form of the product.

Competitive Insights

  • There does not appear to be a predefined list of key competitors to Starbucks VIA Latte or even a "top" or "recommended" list focusing on Instant Lattes (though we should note we did find several "top" instant coffee lists, such as this and this, which were not necessarily focused on latte).
  • Instead, we identified several brands highlighted on Amazon, along with Starbucks VIA, in the instant latte segment as a viable proxy for key competitors to the Starbucks VIA Latte line.
  • Some key competitors to Starbucks VIA Instant Latte on Amazon include Cafe Tastle, Maxwell House, Nescafe, Gevalia, and Organo. Please note this is not an exhaustive list of competitors.
  • Gevalia focuses on its authentic taste and real ingredients in their Caramel Latte positioning: "Be your own barista with Gevalia Cafe at Home. With Gevalia, you can create an authentic cafe-style caramel latte at home—without a brewer. Just combine our rich, never bitter espresso coffee with our creamer, made with real milk, to create a delicious caramel latte with a layer of velvety foam." An initial scan of consumer feedback indicates superiority in terms of taste versus the competition, while price concerns are more prominent.
  • Sample Gevalia comments include, "The foam is what makes Gevalia 100x better than the competition" "Delicious and frothy coffee. Love the taste and balance between milk and coffee", and "Great Cappuccino (but not a good price)."

Additional Reviews

  • The VIA Vanilla Latte was part of a broader recent review of the VIA line in this review by kitchenhomer.com. The reviewer noted the flavor's popularity among teens ("This sweet-tasting brew is a hit among teenagers who want a not-so-strong dose of coffee")
  • Other blog reviews tended to be more dated, from the initial 2014 launch, such as this review which notes that "Fans of a regular Starbucks Mocha will definitely find that this matches up to the original latte with a nice balance of flavors."
  • This 2015 reviewer noted the Vanilla Latte "wasn’t as strong as I expected but I’d still give it a 7/10!" and the Caffe Mocha was " too sweet for me and it made my throat feel dry afterwards (more like a Hershey’s syrup aftertaste, if you know what I mean)."

Summary of Findings

  • In this initial research, we found numerous consumer reviews of Starbucks VIA Instant Latte and its competitors (such as Gevalia). There was less information about Starbucks VIA Instant Latte found on blogs, possibly due to the fact that this is not a newer product (as there was more information around the time of its initial launch). Social listening information surrounding the VIA Instant Latte line (and the category) was also quite limited, suggesting the VIA Latte is not a frequent topic of social conversation.
  • Early information suggests taste, texture, convenience, and price are key drivers of interest in the Starbucks VIA Latte line. Information also pointed to the Starbucks name and comparable in-store alternative setting clear expectations for the VIA Instant Latte taste experience, which often impacted those who were dissatisfied with the product delivery.
  • Communication appeared to be specific to the flavor variety, and messaging for that variety, coupled with a possible previous in-store experience with the flavor, set the ingoing expectation for the product.
  • Social listening feedback for the VIA line (latte or coffee) was not found, and a scan of Starbuck's social accounts indicates that Starbucks posts center on their in-store items, such as new or limited-time offerings and social good initiatives. We did spend some time drilling into the Pumpkin Spice flavor (since it is one of the VIA Instant Latte flavors), which mainly reinforced the limited discussion around the VIA Instant Latte. It is possible that lower awareness of the VIA Instant Latte line may also be limiting its performance in market.
  • Recommendations are based on the information we uncovered in early research.