Starbucks to sell instant coffee at Costco, Target

Starbucks has just introduced a new line of instant coffee that it plans to sell at Costco and Target. At Costco, a bundle of the instant coffee packets will cost $15.98, which makes a cup of coffee about .67 cents.

Although Starbucks claims that the global market for instant coffee is worth around $17 billion dollars, I feel that the the new instant coffee might cheapen the brand. Starbucks is based on a special experience you have when drinking a cup of coffee, which you can only have if you're in a Starbucks restaurant. This has enabled them to charge a higher price for their coffee because people are willing to pay for the experience and brand name. However, I think selling instant coffee at such a low price in discount stores like Costco and Target might hurt the brand more than help it. Starbucks does already sell products in these stores, but they are priced a bit higher than the other brands of coffee like Folgers and Maxwell House.

http://www.seattlepi.com/business/404556_starbucks2.html