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SW Retail Advisors founder Stacey Widlitz analyzes why Starbucks’ stock is soaring after its new CEO announcement on ‘The Claman Countdown.’
Starbucks will stop selling the olive oil-infused coffees it debuted last year.
Bloomberg first reported Tuesday that the coffeehouse chain plans on “saying goodbye” to the Oleato coffee drinks once and for all come early November.
A spokesperson for Starbucks confirmed to FOX Business the Oleato line was being discontinued next month. The chain makes changes to its offerings on a regular basis, the spokesperson added.
A Starbucks sign in Warsaw, Poland, July 31, 2024. (Aleksander Kalka/NurPhoto via Getty Images / Getty Images)
The Oleato line has been offered at Starbucks locations across America and other locations internationally since the beginning of the year.
Oleato caffe latte, Oleato iced shaken espresso and Oleato golden foam cold brew are among the Oleato drinks the coffeehouse chain has sold.
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The drinks were originally launched in 2023, when Starbucks added them to menus in Italy.
Howard Schultz, who headed Starbucks as CEO for two stints and interim CEO for another, said in February 2023 he had become “captivated by a transformation idea” of combining coffee and olive oil, helping bring about Oleato.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SEX | STARBUCKS CORP. | 97.39 | -0.63 |
-0.64% |
“As I prepare to pass the mantle of leadership to Laxman [Narasimhan] and the rest of the Executive Leadership Team, it’s my deepest wish to share this moment of inspiration and love with you,” he said at the time. “This innovation is a tribute to the convening power of coffee and connection and the entrepreneurial spirit that drives us forward to new possibilities.”
Narasimhan ran the coffeehouse chain from March 2023 to September 2024, and Brian Niccol became CEO at Starbucks Sept. 9.
A Starbucks coffee shop’s sign June 11, 2021, in Miami, Fla., as the company reported supply shortages at some coffee shops. (Joe Raedle/Getty Images / Getty Images)
The planned discontinuation of Oleato predated Niccol’s tenure at Starbucks, the Starbucks spokesperson told FOX Business.
Niccol said last week the company “need[s] to fundamentally change our recent strategy” to “welcome all our customers back and return to growth.”
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“We will simplify our overly complex menu, fix our pricing architecture and ensure that every customer feels Starbucks is worth it every single time they visit,” he said.
The Starbucks sign outside one of its stores in New York July 3, 2008. (Reuters/Chip East/File Photo/File Photo / Reuters Photos)
Starbucks is planning to “refine mobile order and pay” and “address staffing in stores,” among other initiatives, he also said.
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The company plans to release its financial results for the fourth quarter Wednesday.
In preliminary results announced last week, Starbucks said it generated $9.1 billion in net revenue for the fourth quarter. Its quarterly diluted net earnings per share, meanwhile, was $0.80.
Daniella Genovese contributed to this report.
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