Nineteen months after Oleato arrived in the United States, Starbucks will remove the olive oil-infused coffee beverage from its U.S. and Canadian locations.
The decision comes as the company announced a third consecutive quarter of falling sales fueled by a ten-percent decline in North America. Starbucks also suspended a previously planned outlook for the 2025 fiscal year.
“It is clear we need to fundamentally change our strategy to win back customers,” newly installed chief executive Brian Niccol told investors on a conference call where he outlined plans to streamline the company’s sprawling menu and speed up service by simplifying baristas’ jobs.
See Also:Extra Virgin Olive Oil Yields Superior Sottoli in Puglia“My experience tells me that when we get back to our core identity and consistently deliver a great experience, our customers will come back,” the former Pizza Hut, Taco Bell and Chipotle Mexican Grill executive added. “We have a clear plan and are moving quickly to return Starbucks to growth.”
Oleato was the brainchild of former chief executive Howard Schultz, who said the inspiration for the drink came after an extended trip to Sicily, where he was introduced to the custom of drinking a tablespoon of extra virgin olive oil before his morning coffee. Later, he started mixing the olive oil directly into the coffee.
The coffee line included five hot and cold brewed beverages made with a tablespoon of Nocellara del Belice extra virgin olive oil sourced from an award-winning producer in Partanna.
The beverage line debuted in Italy in February 2023 and has since spread to stores in Canada, China, France, Japan and the United Kingdom. Starbucks has not publicly said whether it will discontinue Oleato from its international stores, where sales declined in 2024.
During its year-and-a-half run, the Oleato line of beverages was met with enthusiasm and skepticism.
From the outset, some experts hoped Starbucks could become a global olive oil ambassador by introducing extra virgin olive oil to the next generation of consumers and providing a new platform for olive oil producers.
Some U.S.-based Starbucks locations even sold bottles of Oleificio Asaro dal 1916’s Partanna Robust blend, used to make the beverages. However, it is unclear what impact this additional sales channel had on the Sicilian producer.
Despite a then-bullish Schultz claiming Oleato would “transform the coffee industry” and his successor, Laxman Narasimhan, describing the beverage launch as “highly successful” and “one of the top five product launches in the last five years,” customers and critics were giving the beverage mixed reviews.
While some customers enjoyed the “super rich, creamy, and nutty flavor,” others reported cramping and experiencing a laxative effect after drinking the olive oil coffee beverage. Dieticians attributed this to the combination of high levels of fat and caffeine.
Baristas and managers at several stores also confirmed to Bloomberg News that the item was not very popular.
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