Starbucks Introduces Nitro Coffee – CNBC

So what about price? At Starbucks, a grande (large, 16 fl. oz.) nitro will range in price from $ 3.25 to $ 3.95, depending on the market. This works out to be just a bit more than Starbucks’ cold brew (which launched at $ 3.25 for a grande last year) and around a dollar more than a regular iced coffee. At Stumptown, which has only 11 locations nationwide and roasts its beans in smaller batches, a 12-ounce cold brew costs no more than $ 3.50; the same size nitro costs $ 4.50 (price varies by market). Of note: While iced coffee and cold brew are served on ice, nitro is served directly from the cold tap at both Starbucks and Stumptown, and served neat. Either way, the taste, and experience, of drinking iced coffee, cold brew, or nitro is significantly different.

Starbucks’ nitro launch will happen in waves. Four Seattle-area locations already serve the beverage. By this summer’s end, it will be served at locations in New York, Chicago, Boston, San Francisco, and Los Angeles as well.

In addition to launching nitro coffee, Starbucks is unveiling a new drink today: Vanilla Sweet Cream Cold Brew is cold brew coffee served on ice and topped with a float of house-made vanilla sweet cream, made from milk, cream, and vanilla-flavored syrup. This is Starbucks taking a cue from third wave coffee’s cold brew darling and innovating on top of it, adding flavoring and sugar — two elements that have become something like Starbucks’ signature.

The introduction of nitro coffee is an interesting move for Starbucks, a company that was at the forefront of coffee’s second wave. Once an innovator in the coffee sector, Starbucks created and captured a new generation of coffee drinkers in the ’80s and ’90s by introducing flavored brews and Frappuccinos. Today, with coffee’s third wave well under way, Starbucks is playing catch up. Rather than simply innovate, the coffee giant is inspired by the small, obsessive coffee shops that have popped up in large cities across the country. The roasters and baristas behind these shops are pushing coffee drinkers to expect more, better, and fresher brews. Demand for quality coffee isn’t waning. But can Starbucks simultaneously cater to consumers who like their Pumpkin Spice Lattes and those who want a flat white? With this nationwide nitro launch, it’s clearly betting on it.