Does Starbucks third Space attract consumers? Coffee Starbucks family scene consumption

Do you remember that during the Double Eleven Shopping Festival in 2020 last year, Nestle released a message saying: Starbucks 'coffee sales performance is 30 times that of last year?

Coffee is a big industry with many formats, and in recent years, more and more people have opened cafes, and the business scenarios of cafes are also very diversified. When everyone is discussing which field in the coffee field is more profitable, Starbucks, the coffee industry tycoon, has quietly brought coffee into the family scene.

In the public perception, Starbucks is more about operating the third space, and family scenes are rarely involved.

But in fact, Nestle acquired the permanent sales rights of Starbucks retail business (bagged goods) for US $7.15 billion in August 2018, forming a global coffee alliance.

In May 2019, Nestle, a global coffee giant known for instant coffee, suddenly announced a joint venture with Starbucks, a former competitor in the global coffee market, to form a global coffee alliance.

Subsequently, on August 8, 2019, Nestle and Starbucks jointly held a launch event in Shanghai to launch 21 new products, including roasted coffee beans, ground coffee powder and the first Starbucks coffee capsules developed for Nespresso and Nestle coffee machines.

The entire new line has a unified name worldwide, Starbucks At Home.

The implication is that Starbucks began to lay out family scenes as early as 2019, and Starbucks coffee products officially entered home scenes and out-of-store channels in Daliu.

For this family scenario, Starbucks President and CEO Kevin Johnson has said in Starbucks 'first quarter financial report for fiscal year 2021 that "Starbucks' home-sharing products are in high demand, Nestle's global coffee alliance is strong, and Starbucks has historically become the No.1 coffee brand in the entire coffee category by the end of 2020." Although Nescafe and Starbucks focus on different coffee markets,(Nestle dominates the coffee retail market, while Starbucks specializes in offline chain stores). However, from the result point of view, their joint formation of the Global Coffee Alliance is undoubtedly the right choice. For Nestle, coffee business is Nestle's largest high-growth category. Nestle and Starbucks are two famous brands in the global coffee market. Cooperation is an important measure for Nestle's coffee business. Starbucks has expanded from the original third space scene to the family scene. The alliance between the two is actually a win-win process.

In addition, in addition to home scenarios, Starbucks has previously launched an overall coffee solution for "We Proudly Serve Starbucks Coffee," which provides one-stop coffee solutions for spaces and scenarios such as offices and hotels in cities. According to normal development trends, this service will enter more cities in the next five years.

At present, Starbucks family enjoy series already has including whole bean coffee, roast ground coffee, coffee capsule, coffee machine and so on category, although Starbucks has achieved good performance in the family scene at present, but for the main "third space" Starbucks, whether the future can get a larger share of the family scene still needs time verification.

* Image source: Internet