Wednesday, May 12, 2010

Starbucks Expands its Seattle's Best Brand to Compete

Starbucks is revamping its Seattle's Best brand by expanding its availability through franchises and a big expansion at other retailers.

The coffee giant is facing increased competition as lower-priced rivals such as: some gas stations like Holiday or Super America and restaurant McDonald's, have copied fancy coffee shop coffees Starbucks made popular, and have priced them significantly lower.

Starbucks just announced that it will increase its availability of Seattle's Best Coffee in 300 AMC Theaters nationwide beginning in July. Seattle's Best will also be offered in Burger Kings across the country by September.

You may have already seen other companies serving Seattle's Best, including Alaska Airlines, Borders bookstores and Royal Caribbean Cruise Lines.

Starbucks and Seattle's Best have been a pair since in 2003.

I think this is a good idea for Starbucks. It would be hard for the Starbucks brand to compete against a company McDonald's, since it would require them to completely change their brand identity to meet those consumers who are buying coffee based on cheaper price. Actually, it would probably hurt Starbucks more if they did do this. However, I believe the Seattle's Best brand can be taken anywhere and can compete against the cheaper priced rivals in the coffee market.

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