Starbucks Testing $2.50 Cup of Brew

Slumping company looks to both high-end and low-end products
By Jane Yager,  Newser Staff
Posted Feb 15, 2008 9:03 AM CST
Starbucks Testing $2.50 Cup of Brew
J.J. Geise reads a paper as he treats himself to coffee and a baked good at a Starbucks coffee shop in Seattle in this Jan. 25, 2008 file photo. Starbucks Corp. is teaming up with AT&T Inc. and will start offering a mix of free and paid wireless Internet service in many of its U.S. coffee shops, beginning...   (Associated Press)

Struggling with its first major sales slump, Starbucks hopes to lure back customers with a $2.50 cup of luxury coffee. The company hopes to find a high-end niche among serious coffee aficionados with the new brew, made in an $11,000 gizmo similar to a French press, Bloomberg reports. The company already is experimenting with a $1 cup with free refills.

"If they can create a better-tasting product and if they can get people to pay more for it, then you'd have the missing ingredient, which is pricing power," said one analyst. The price is about a dollar more expensive than the current regular brew, but just less than the company's lattes. (More Starbucks stories.)

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