Starbucks' newest coffee drink comes with a surprise: olive oil
Starbucks is launching a sweet new line of coffees with a savory twist: one heaping tablespoon of olive oil.
The coffee chain this week announced the new "Oleato" beverage line, which includes three coffees crafted with the Mediterranean staple: the Oleato latte with oat milk and olive oil, the Oleato ice shaken espresso with oat milk, hazelnut syrup and olive oil, and the Oletao golden foam cold brew, crafted with Starbucks' sweet milk infused with two servings of olive oil.
The product line's name draws inspiration from the Italian word for "with oil," according to Starbucks.
The coffee giant debuted the drinks at its 25 Italian locations on Wednesday. It plans to roll out some versions of the three beverages in Southern California this spring, with information about other U.S. markets still to come. The coffees will also hit markets in the United Kingdom, Japan and the Middle East later this year.
Starbucks interim CEO Howard Schultz said the idea for the quirky concoction was born during a trip to Sicily, where he was inspired by the local tradition of consuming one tablespoon of olive oil per day to promote good health. When mixed with olive oil, both hot and cold coffees take on an "unexpected, velvety, buttery flavor" that "lingers beautifully on the palate," Schultz said in the company's product announcement.
Starbucks executives hope the olive oil-infused beverages will be a market-maker, drawing customers into its stores amid a period of tightening consumer demand. Earlier this month, the coffee company reported lower-than-expected earnings and revenue numbers for the fourth quarter as a coronavirus wave shuttered more than 1,000 of its 6,090 Chinese locations and weakened international demand. The U.S.-based chain has also faced considerable hurdles in its effort to expand into Italy, where strong coffee traditions have allowed mom-and-pop coffee shops to reign supreme.
"This is a transformational moment in the history of our company: creating a new category, a new platform," Schultz told CNBC's "Mad Money."
Starbucks has long embraced product diversification as a central part of its corporate strategy. The chain offers more than 87,000 possible drink combinations through various customization options and is also famous for rolling out seasonal beverages like the cult-classic pumpkin spice latte and peppermint hot chocolate.
A press, or spoonful, of the company's Partanna olive oil will become available as a customization option for all Starbucks drinks.
Alongside the oiled coffee, Starbucks is also debuting an Oleato espresso martini, available at select locations in Italy, Seattle and New York.