As Starbucks launches an olive oil-infused range of drinks, MCA asks coffee experts whether the new product innovation could become as big a hit as the famed pumpkin spiced latte – and help the High Street chain re-capture some cultural relevancy
Starbucks may not be to the taste of purists, but to its credit the brand has been a dynamic, innovative force in the often prescriptive world of coffee.
For better or worse, the chain has helped popularise espresso-based beverages around the world, creating a string of concoctions that have become much-imitated household names: see the Frappuccino and pumpkin spiced latte.
Nor is the Seattle-founded coffee giant afraid to face opprobrium in the country that inspired it. Howard Shultz, the man responsible for building Starbucks into the global brand it is today, was captivated with the romance of Italian coffee bars while visiting Italy and determined to recreate the experience in the US.
Now in his third stint as CEO and tasked with reenergising the brand, Shultz has returned to his original inspiration for his next big product launch.
The idea arrived during a trip to Sicily, where he adopted locals’ daily ritual of taking a spoonful of extra virgin olive oil with his morning coffee, before deciding to experiment by mixing the two together.
Launched in Milan this week, the range includes an iced shaken espresso, an espresso martini and olive oil latte steamed with oat milk. Called oleato, it is a play on words between the Italian terms oliva (olive) and oliato (meaning oiled and smooth).
Shultz says it produces an “unexpected, velvety, buttery flavour that enhanced the coffee and lingers beautifully on the palate”.
The corporate executive says he hasn’t been so excited or enthused in 40 years. And in an acknowledgement of the potential backlash of combining two sacred Italian staples, advises the “proof is in the cup”.
The drinks will be available in the US in the spring, and the UK, Japan and Middle East later this year.
Launching in Italy first may seem like an audacious move for a brand which faced scorn on its launch in Milan in 2018 – carrying coals to Newcastle springs to mind.
But the sentiment towards the American brand appears to have softened in the birthplace of espresso, with some 20 Starbucks stores now operating across Northern and Central Italy, and a further 26 planned by the end of 2023.
For UK-based coffee shop operators, there is an attitude of “don’t knock it until you’ve tried it” when asked about the new product.
That was the perspective of Craig Bunting, founder of five-strong Bear Coffee, which recently secured funding from Clark private equity firm Clark Group to open new shops and enhance its online offering.
“For me, I can almost guarantee that many coffee professionals and menu development teams, from indie brands to corporations alike, will find it difficult to discount this without trying it (As I head downstairs to knock out a quick latte on my home machine with olive oil in hand!)
“Whether this will make them relevant is a much bigger question - I am not sure a drink innovation will do that, but I don’t doubt this is part of a much wider strategy to achieve relevancy.”
Also keen to give the combination a fair taste, Chris Ammerman, co-founder of Caravan Restaurants and Coffee Roasters, said olive oil could potentially add creaminess for dairy-free consumers – though he is sceptical over whether it will catch on.
To test the combination, he poured a double shot of El Fenix Gesha from Colombia and added some Oatly almond milk followed by a dollop of Filippo Berio Extra Virgin Olive Oil.
“The olive oil typically added fat to the drink increasing the mouthfeel, but it masked all the fruit flavours,” he tells MCA.
“It feels like they’re trying to make it taste more like a cow’s milk drink, which has a higher fat content than oat milk. I have to confess I prefer drinking black coffee, so it’s definitely not for me.”
For the specialty pioneer, there was a suggestion the tweak was being used to mask the flavour of lower quality ingredients.
“The general consensus was not a pleasant experience,” he adds. “If you’re using good ingredients, you shouldn’t really need to add olive oil. I can’t see this trend catching on in the UK. Good to try it, but we’ll stick with our great tasting craft coffee for the time being.”
Meanwhile for Jeffrey Young, CEO of coffee insight specialist Allegra, the innovation demonstrates how Starbucks are looking to stay fresh.
“While consumers are creatures of habit, they form new habits when good products come along, e.g. flat whites, iced beverages, oat and non-dairy alternatives, seasonal beverages and cold brew in the US,” he tells MCA.
Young commended Starbucks for not taking the easy option and trialling it in Italy first, a place where they could face a tough reception.
“There is no major beverage precedent here other than coffee and olive oil are staple food ingredients deeply rooted in Italian lifestyle – except of course with bullet proof style coffee, including butter or coconut oil added to coffee.”
With critics accusing Starbucks of losing relevancy, Young cautions against writing off the chain’s cultural influence.
And despite the NPD originating and having a top-level cheerleader in Shultz, Young dismisses the idea that it is a knee-jerk PR stunt.
“Especially launching in Italy, I see this as a genuine well- thought-through product innovation, based on significant background research and development.
“I would say it has a better than 50% chance of a successful product launch, and potentially something that could be followed by others across the world of coffee.
“There are genuine health benefits and potentially a new category of functional coffee with a delicious texture if well executed. It could be very relevant to indulgent blended iced drinks too.
There is a caveat though. “Nothing is guaranteed until it’s tested with live consumers, and we won’t know for a while,” Young adds.
