Among Starbucks executives, the idea sounded great: If coffee and olive oil work great separately, why not combine them in a single (and outrageous) drink, accompanied by a well-oiled coffee machine? branding And marketing From a Seattle multinational? Such a question was asked by Howard Schultz, one of the key figures in the company’s history, who left the board a little more than a year ago. The result was “Oleato”, a line of drinks that included: latte any espresso Based on coffee and oil.

For Starbucks, the blend represented a “transformative innovation,” a “revolutionary” proposition for coffee growers. The problem is that time has shown that not all customers feel the same way about the company.

At least, we can draw this conclusion from the fact that less than two years after its launch, the network decided to say goodbye to “Oleato” in the United States and Canada.

A cup of coffee with olive oil? Yes, this is the peculiar (or not so strange) claim of “Oleato”, which was launched in Italy at the beginning of 2023 and has since spread more or less steadily to other international markets. It was presented to great fanfare in Milan in February 2023 as a “transformative innovation”. Without losing sight of the adjectives, its supporters spoke directly of “unexpected alchemy.”

And the truth is that the offer was stunning. At least this. “Oleato” combines Arabica coffee with a tablespoon of extra virgin olive oil from the Sicilian company Partanna. The multinational company, which launched its new series with various products in 2023, guaranteed: “The result is a smooth and velvety coffee”: latte, espresso, cold brew… “This represents the next revolution in coffee,” enthused its then-chief executive, Howard Schultz.

But… Why? Like all good releases, the “Oleato” release came with a story. It wasn’t by chance that Starbucks decided to bet on the mix of oil and coffee. Moreover, the company explained that the idea was drawn directly from Schultz’s experience, when during a trip to Sicily in 2022 he encountered a habit that caught his attention in some families on the island: taking a teaspoon of olive oil every day.

The idea seemed so good that Schultz decided to incorporate it into his routine. He started taking a sip of the oil every morning while drinking coffee for breakfast. Until one day he asked himself the million-dollar question: Why not combine these two habits?

No sooner said than done. The manager tried the oil and coffee together. And what he discovered at Starbucks is said to be “a delicious and unexpected alchemy of beverages” that he eventually discussed with the Starbucks development team. “‘Olive oil in coffee?’ But the proof is in the cup. In over 40 years, I cannot remember a time when I was more excited, more enthusiastic,” Schltz admitted during the presentation of “Oleato.”

make your way. Starbucks did more than experiment. It has launched a line of products with different combinations based on coffee and Partanna extra virgin olives. There were oat milk, hazelnut syrup, ice, vanilla cream options… He even invented the Oleato Golden Sparkling Espresso Martini.

The new drink was launched in Italy in February 2023, aiming to enter “select markets worldwide” starting with Southern California that same spring. Their goal was to reach Japan, the Middle East and the United Kingdom that year. At least at that time, Spain did not appear to be in his plans.

A year later, in January 2024, the Seattle company announced that its “Oleato” drinks are now available for purchase at all locations in the United States. “It is also available at establishments around the world, including Canada, France, Japan, London and select cities in China,” the chain detailed, along with a map highlighting cities such as Beijing or Shanghai.

From the big premiere… Stepping back appears to be what the multinational is doing in the North American market. That same week, Bloomberg revealed that Starbucks plans to remove “Oleato” items from its menu starting November 7, to coincide with the launch of its Christmas drinks.

The news has since been confirmed by media outlets such as CNN, BBC, Axios and CNBC, who stated that the coffee and olive oil-based drink will bid farewell to the US and Canadian market. The BBC assures that, at least for now, “Oleato” will continue to be available in some outlets in Italy, Japan and China.

So what is the reason? The multinational company wants a simpler menu, as current executive director Brian Niccol has hinted, having recently admitted that the current menu is “too complex”.

However, different media outlets that confirmed the news assure that the agreement to eliminate the “Oleato” line in the USA and Canada was agreed before the executive took the CEO seat. “The decision was made before Brian Niccol took office,” a spokesperson for the network assures the BBC, and he himself admits that the move is in any case “consistent” with the idea of ​​simplifying the menu.

context, key. Beyond Niccol’s desire to craft a more manageable menu for customers, there’s no denying that the chain’s decision comes in a very specific and not particularly positive context. Neither for Starbucks in general, nor for the “Oleato” line in particular. The latter did not inspire the great admiration Schultz expected. There was a difference of opinion among customers, and even criticism from users who claimed that it caused stomach problems.

Of course, not all evaluations were in this direction. According to former CEO Laxman Narasimhan, the drinks were a “huge success” and one of the biggest launches in the last five years for the chain in terms of branding.

What does finance say. The pushback from “Oleato” also comes at a time when Starbucks is trying to reverse a sales decline. In the fourth quarter, its sales decreased by approximately 3.2% to 9 billion 74 million dollars. Revenue volume for the full year is barely 0.6% higher than last year. Considering this scenario, which also caused a decline in shares, the company chose to suspend its annual forecasts.

Pictures | Starbucks 1 and 2 and Roberta Sorge (Unsplash)

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