Starbucks Corporation
(
SBUX
) has introduced a protein and fiber rich breakfast -- New Hearty
Blueberry Oatmeal. This ready-to-eat breakfast comprises a blend
of steel-cut and rolled oats topped with blueberries, a fruit,
nut and seed, as well as agave syrup.
A serving of the new Hearty Blueberry Oatmeal, carrying 280
calories, 7 grams of protein and 6 grams of fiber, is part of the
company's 'health and wellness' strategy started in 2011. Health
and wellness offerings are targeted at health-conscious,
high-income consumers, who are less affected by the economic
downturn.
Starbucks claims that by offering an entire range of customized
health drinks, it will help customers to make healthy choices
easily. The company offers options between non-fat milk and a hot
espresso drink.
Starbucks has made noticeable attempts to offer a healthier food
spread on its menu card. In 2009, it got rid of artificial colors
and flavors and introduced salads, as well as plates of eggs,
cheese and fruit. Its stores have also introduced bags of nuts,
dried fruit and oatmeal. Starbucks mentions the calories by the
side of every food item that it sells.
As people are increasingly becoming more health conscious, such
healthy low calorie options that do not sacrifice taste are
likely to be a hit.
Regular product innovations like the at-home coffee machine,
Verismo; and strategic deals like La Boulange, Evolution Fresh
and Teavana are helping Starbucks stand out from its peers. The
company is also gaining momentum following its solid 2012
results.
However, Starbucks is not the only one to woo customers with
healthy choices. Many companies have jumped on the bandwagon.
Pepsico
(
PEP
) has established a global nutrition group in the windy city's
West Loop, headed by the company's chief scientific officer.
Among other initiatives, the company will be rolling out savory
snacks in which the salt content will be less. Northfield,
Ill.-based
Mondelez International Inc.
(
MDLZ
) is developing organic food.
Our Recommendation
We currently have a long-term Neutral recommendation on
Starbucks. However, the stock carries a Zacks #2 Rank (short-term
Buy rating).
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