Starbucks to Remove Controversial Olive Oil-Infused Drinks from U.S. Menus
Background
Starbucks’ controversial line of olive oil-infused drinks, known as Oleato, will be removed from U.S. menus in early November. The decision to remove the drinks from domestic menus predates newly installed CEO Brian Niccol, who arrived at Starbucks in early September. However, it aligns with Niccol’s strategy to simplify menus as part of a broader turnaround scheme to go "back to Starbucks."
History of the Oleato Line
The Oleato line was first launched in Italy, where Schultz saw Sicilians drinking olive oil as a daily ritual. He, too, began drinking olive oil alongside his daily coffee and decided that Starbucks should try to mix the two together. The line was then brought to stores in Southern California in the spring of 2023 and a nationwide launch followed in January.
Reception and Controversy
The drinks were met with largely negative reviews in the U.S. press, and some social media users complained that the drinks had a laxative effect. The combination of coffee and olive oil did not seem to resonate with customers, and the drinks ultimately failed to gain popularity.
Impact on the Company
The removal of the Oleato line is part of Starbucks’ broader efforts to simplify its menu and refocus on its core offerings. The company will report its fiscal fourth-quarter earnings after the bell on Wednesday, and investors are eagerly awaiting the results. The news of the drinks’ departure is likely to be a non-event for the company’s financial performance, but it may be seen as a step in the right direction for a company looking to regain its footing.
Conclusion
The removal of the Oleato line is a significant departure for Starbucks, but it is a necessary step in the company’s efforts to simplify its menu and refocus on its core offerings. With the departure of the line, the company can focus on its core strengths and offerings, and work to regain its position in the market.
Frequently Asked Questions
Q: Why is Starbucks removing the Oleato line?
A: The company is removing the Oleato line as part of its efforts to simplify its menu and refocus on its core offerings.
Q: When will the Oleato line be removed from U.S. menus?
A: The Oleato line will be removed from U.S. menus in early November.
Q: Will the Oleato line be available in other markets?
A: Yes, cafes in China, Italy, and Japan will continue to serve the Oleato line.
Q: Why did Howard Schultz think the Oleato line was a good idea?
A: Schultz was inspired by his trip to Italy, where he saw Sicilians drinking olive oil as a daily ritual. He believed that the combination of coffee and olive oil could be a game-changer for the company.
