Why is Starbucks' Narino 70 Cold Brew Coffee So Expensive?
Starbucks' Narino 70 Cold Brew coffee stands out not only for its rich taste but also for its higher price point. This upscale offering is priced more than standard cold brew options, and this article explores the key reasons behind this pricing strategy.
Specialty Coffee Beans
The primary reason for the elevated cost of Narino 70 is the use of high-quality Arabica beans sourced from the Nario region of Colombia. Known for its unique flavor profile, these specialty beans command a premium price due to their limited availability and the specific growing conditions required.
Sustainable Sourcing
Another factor contributing to the high price of Narino 70 is Starbucks' commitment to ethical sourcing. The company often pays a premium for beans to support sustainability and fair trade practices, which directly impacts the final product cost.
Production Process
The cold brew process itself is more time-intensive than traditional brewing methods, making it more labor and resource-intensive. Cold brew involves steeping coffee for an extended period—at least 20 hours—which requires specialized equipment and more significant investment in both labor and resources.
Limited Edition
Marketing Narino 70 as a limited-time offering or a seasonal product can further justify the higher price point due to its exclusivity. Consumers often perceive limited-edition products as more valuable and worth paying more for.
Brand Positioning
Starbucks positions itself as a premium coffee brand, and higher pricing for certain products aligns with this strategy. By pricing Narino 70 higher, Starbucks showcases its commitment to quality and uniqueness, differentiating it from standard offerings.
Trade-offs in Cold Brew Preparation
Preparation time is a crucial factor in cold brew, and the process is notably more labor-intensive compared to traditional brewing methods. Even though cold brew can be served more quickly, the initial steeping requires significant investment in labor and resources.
The ratio of coffee to water in cold brew is also different from hot brew, meaning that each cup of cold brew costs more to produce from a coffee standpoint. This higher cost per unit of coffee is a key driver in the final price of the product.
As Andrew points out, the pricing of cold brew is still evolving, and businesses like Starbucks can experiment with how much they charge the consumer. Ultimately, the pricing strategy is guided by the principle that 'charge what the market will bear.'
If people do not purchase Narino 70 at the current rate, Starbucks may reduce the price, sell a different product, or adopt more efficient production methods to maximize profitability. This adaptability is a key characteristic of premium brands like Starbucks, ensuring they can respond to market demands.
In conclusion, the high price of Starbucks' Narino 70 Cold Brew coffee is a result of multiple factors, including the use of specialty beans, sustainable sourcing practices, the extended brewing process, limited edition status, and brand positioning as a premium coffee. These elements collectively contribute to making Narino 70 a desirable and costly offering for coffee enthusiasts.