Starbucks to go instant?

Excuse me if I am wrong, but isnt the whole Coffee experience the picking of fine Coffee, the Roasting, the Grinding, the Brewing, just an over all atmosphere? Well look what these choads are doing. Starbucks Instant Seriously, could you get any closer to being Folgers? We wonder why they are closing down Starbucks stores faster than Shit through a Goose? Well I never did, to me they couldnt close fast enough. Regardless, just throw in the towel already. No need to further make a joke of what you once were. The Chocolate Coffee Smoothee outlet that built on every corner.

Starbucks will profit from instant coffee
Posted Sep 29 2009, 05:47 AM by Douglas McIntyre Rating: Filed under: Starbucks, 24/7 Wall St.
Starbucks (SBUX) has been talking about its foray into the instant coffee business, and its product, “VIA Ready-Brew,” finally launches in the U.S. and Canada today.

According to the company, VIA "is made with a proprietary, U.S. patent-pending microgrind technology to preserve the coffee’s taste, quality and freshness.” Chief executive Howard Schultz sees the launch as a way to get the firm into the $21 billion instant coffee business using its brand power as leverage (see video below).

It may not matter if VIA is “better” than the coffee that Starbucks sells in its stores, since that will be a subjective decision on the part of consumers. What will matter is that the margins on the instant product are probably very high, at $2.95 for a three pack.

Bing: Read more about Starbucks' VIA
That will help Starbucks keep the momentum that cost cuts and slightly improving sales have given to its share price, which, at above $20, is more than double its 52-week low.

VIA is a financial breakthrough because it allows Starbucks to attack a market much larger than the coffee house business and because the product does not rely on a system of relatively expensive stores with relatively expensive employees for its sales. Starbucks annual revenue is just above $10 billion, and its growth has stalled. The odds that people will flock back to its stores in droves given the relatively high costs of its drinks and food are relatively low, even if the recession is ending.

VIA is Starbucks path to improved sales and profitability, and, in the final analysis, the introduction of the product carries almost no risk.