Starbucks customers have taken a liking to cold foam.
The product, which the coffee shop giant first introduced in 2014, has become one of the chain’s most popular add-ins, alongside espresso shots, syrups and customized milks.
At a time when Starbucks’ sales have generally been weak, including a 2% U.S. same-store sales decline last quarter, the company's fiscal third, cold foam continues to surge. Sales of the add-on increased 23% last quarter, the company’s fiscal third period, CEO Brian Niccol told analysts on Tuesday.
Unsurprisingly, Starbucks is looking for ways to maintain that momentum. The chain later this year will introduce protein cold foam, the first product tested under the chain’s “Starting Five” operations approach and one targeted at the latest health fad. The company just this week introduced a limited-time, Raspberry Cream Cold Brew with raspberry cream cold foam.
The popularity of cold foam mirrors the rise of cold beverages at Starbucks and other chains.
Scandinavian coffee shops have long used cold-frothed milk to top their drinks. Starbucks introduced the product at its Seattle shops in 2014. The product was expanded nationwide in 2018, when it was made an add-on to any of the chain’s cold beverages.
Those cold beverages have become increasingly popular at Starbucks, now accounting for three-quarters or more of the chain’s sales. The popularity of those cold beverages, and add-ins like cold foam, have been a boon to the company's revenue. Add-ins on their own generate more than $1 billion in revenue every year. Cold foam is a key part of that.
Cold foam is made by frothing milk or cream, often with another flavoring. Starbucks baristas use a handheld, portable frother to make the cold foam.
Raspberry Cream Cold Brew with raspberry cream cold foam.
The product has become a canvas helping Starbucks fuel beverage innovation over the years, with various combinations of milks or creams, sweeteners and flavorings to create a wide range of different beverages. Almost all major new cold beverage line or seasonal beverage comes with some sort of new cold foam flavoring.
The chain has introduced brown sugar, matcha and salted caramel cold foams. There are seasonal flavors like pumpkin spice or peppermint. But the most popular flavor remains vanilla. Even some now-canceled products, such as the olive-oil line Oleato, featured its own flavoring of cold foam.
Starbucks’ rollout of cold foam more than a decade ago has also fueled its popularity worldwide, particularly in the U.S., ingraining it into coffee culture. Most coffee chains now offer some sort of cold foam. Craft cocktails often feature the product.
Convenience stores like 7-Eleven and Wawa offer some version of cold foam, and grocery shoppers can get cold foam in a spray can.
Given the way those sales took off at Starbucks last quarter, it doesn’t appear that will go away anytime soon.
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