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American Coffee Culture at Starbucks: Milk Tea Test in the Tea Market

September 14, 2024
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How does an American coffee culture brand approach milk tea?

Starbucks has added four drinks to its Deliverspace series, two of them caffeine-free milk teas, prompting speculation that the chain is moving into the tea beverage market. Each drink uses syrup, freshly brewed tea and milk, with the tea bag left inside the cup so customers can add water and extend the flavour. The 36-yuan price has drawn criticism over value.

The tea-bag method dates from the Deliverspace launch last year: the bag steeps during delivery so the drink tastes right on arrival. Some customers find the bag awkward, and cold drinks release flavour slowly. Starbucks previously tried bubble tea in North America with weak results, so this localized version tests whether an american coffee culture brand can compete in a crowded tea category.

Starbucks' Deliverspace series recently launched 4 new products, among which two caffeine-free milk teas have sparked heated discussion. Some speculate this is a signal that Starbucks is entering the milk tea arena after being provoked by Luckin. The new products use a combination of syrup, freshly brewed tea, and milk, with the tea bag placed directly into the drink, allowing customers to add water themselves to extend the flavor. This approach continues the design philosophy of last year's Deliverspace series and has won recognition from some consumers, but others complain that dealing with the tea bag is troublesome and that the flavor isn't released sufficiently in cold drinks. The 36-yuan price tag is still considered high by milk tea enthusiasts, making cost-effectiveness the focus of controversy. Starbucks previously tested bubble tea in North America with lackluster results; this time the domestic new products are highly localized, but whether they can break through in the fiercely competitive tea beverage market remains uncertain.

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Recently, Starbucks' Deliverspace series launched 4 new products in one go, among which two are caffeine-free milk tea beverages that have garnered considerable attention since their launch. Onlookers have been speculating whether Starbucks has been "provoked" by Luckin and is also planning to compete in the milk tea space.

Jokes aside, curious fans still placed orders one after another after the new products went on sale, wanting to taste how Starbucks' version of milk tea differs from other tea beverage brands.

According to the official ingredient information, the ingredients of these two milk teas are not complicated—just syrup, freshly brewed tea, and milk. What sets them apart from most milk teas on the market is that the freshly brewed tea bag stays directly in the drink, and customers can add water themselves after finishing it, making full use of the tea bag.

This approach was already used when the Deliverspace series first launched last year—the tea bag steeps in the drink, slowly releasing flavor during delivery, so that by the time it reaches the consumer, the taste is at its optimal state. Many customers have praised this approach by Starbucks, feeling that this milk tea with a visible tea bag is more reassuring than some milk teas made from tea powder.

However, some consumers have complained after trying it that the freshly brewed tea bag requires you to remove it yourself, adding an extra step to drinking milk tea. Meanwhile, users who prefer a stronger tea flavor report that if they order a cold drink, the tea bag's flavor is not easily released during delivery, and by the time they get it and drink it, the taste falls short—not quite like the milk tea they've had before.

In addition, the price of Starbucks' new products has drawn criticism from some cost-conscious customers. The drink's original price is 36 yuan, and after using a coupon on a third-party platform, a single cup can be brought down to around twenty yuan, but this price point is still not cheap in the eyes of milk tea consumers. Many frankly say that for the same money, they would still choose a milk tea brand.

Actually, this isn't the first time Starbucks has sold milk tea. In early May this year, Starbucks launched a bubble tea-like drink in the North American market called "Summer-Berry Refreshers," which included raspberry-flavored pearls. But after launch, the response was mediocre—local consumers didn't seem to buy into it.

For this milk tea product launched domestically, Starbucks took local consumers' taste preferences into account, with highly localized ingredients, striving to cater to the preferences of users who like milk tea. It's evident that Starbucks put real thought into making milk tea.

Starbucks launches milk tea to test the tea beverage track: can genuine ingredients shake up the fiercely competitive market?

However, in a tea beverage market crowded with similar competitors and white-hot competition, this thoughtfulness is actually hard to get consumers to give a second glance. What everyone cares about more is whether the product suits their taste, whether the price is expensive, and whether buying it is worth it.

Take Luckin, also a coffee brand that sells milk tea—its milk tea product "Light Jasmine" attracted a large number of fans to try it with a low price of 9.9 yuan, selling 44 million cups in a month, letting the brand taste the sweetness of crossing over into tea beverages.

Therefore, netizens generally feel that although Starbucks' milk tea uses quality ingredients and caters to milk tea lovers' preferences in taste, it still falls short in cost-effectiveness. Wanting to break through in the tea beverage market with this will probably not be as easy as the brand imagined.

Image source: Internet

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The above content is compiled by CoffeeHunters, a coffee news website.

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