Save Your Money
With the idea of helping out consumers in this ‘trying economy’, Starbucks announced last week that they will start selling an instant coffee, available for less than a dollar a cup.
The main idea being of course that it will allow consumers to save some money, while still being able to enjoy a ‘good’ cup of coffee.
With that in mind, let’s break it down together.
Starbucks Via Instant Brew
12 servings for $9.95.
$9.95 x 1.07 (tax) = $10.64
Price per serving – 88 cents
So, after all is said and done, you can have a cup of coffee for only 88 cents.
Sweet deal right?
Nope.
Let’s say that instead, you use a 3 cup/12oz press at home, with 20 grams of coffee per press.
1/2 pound of beans = 227 grams. 227/20 = 11.35 servings.
Below is a small sampling from some of the bigger roasters and these are the prices one would pay for a half pound. Keep in mind as well, that we are now comparing the instant coffee to what are literally some of the best quality and tasting beans in the entire world. These are, again, just a sampling.
Intelligentsia – Organic Bolivia Anjilanaka (Direct Trade) – $8.00
Price per serving from a press – 70 cents
Stumptown - Ethiopia Wondo - $8.00
Price per serving from a press - 70 cents
Stumptown - Kenya Ngunguru (Direct Trade) - $10.00
Price per serving from a press - 88 cents
Victrola Coffee - Guatemala Huehuetenango Finca Vista Hermosa (Direct Trade) – $7.00
Price per serving from a press - 61 cents
That instant coffee isn’t looking so cheap now is it? Compared to Victrola, it’s almost 50% more per cup. Let me say again, that this is in comparison to literally some of the best coffee in the world. Not instant coffee.
What’s even funnier is that I just looked up the price of starbucks beans from their online store. For a full pound of Ethiopian Sidamo, it costs $10.45. At half a pound, that will cost you $5.22.
Price per serving from a press – 45 cents
The instant coffee costs just about double what their wholesale beans cost.
So, all this to say that even though it is being marketed as a product that will save money, it actually costs more.
This all just goes to serve as a reminder for a few things:
i) Coffee is really, really, REALLY cheap. 45, 60, 80 cents a cup? Are you kidding me? Think of all the pairs of hands the coffee bean has to go through before it’s in your cup, and yet it’s still far under a dollar. I want to say one more time that we are talking about some of finest coffee available, this is not your average grocery store coffee.
ii) Don’t just believe everything you’re being told. The cup of instant coffee is not even close to being cheaper than whole bean.
iii) Buy a press. Buy fantastic whole bean coffee. Enjoy quality.
great post and as always an awesome picture.
Great post, I was reading up on this earlier last night.
yeah this move has nothing to do with wanting a slice of the multi-billion dollar industry that is instant coffee. The ‘helping of the ecomomy is more likely a reference to those who buy a cup of coffee (or three) everyday as big enticement of instant is convenience. The half price instant cup that (supposedly) tastes just like a cup from Starbucks is now more appealling to that customer base. They’re after the Maxwell House and Folgers crowd. With luck however, some instant coffee drinkers will
-move to starbucks brand instant coffee
-then move to starbucks brand specialty coffees
-and from there why not explore more of the world of specialty coffee?
I doubt many current coffee drinkers will revert back to instant, especially after giving it a taste.
I hope so anyways.
George,
Thanks for the thoughtful post and analysis. As an employee for Starbucks of course I love the “Starbucks is wonderful” blogs, but I always learn so much from a post like yours, so thank you.
For me personally this product isn’t about saving money vs not (though it is less expensive than a cup of drip from a store, for sure), but more about giving me the opportunity to have great coffee when I couldn’t otherwise.
There are many times in my life–while flying, in hotels, camping, visiting my father who lives in a very rural part of the country, or just when I’m in a hurry sometims–when it’s difficult or impossible to get good coffee. VIA gives me an option. Others are reporting being excited to use it in an office that has “bad coffee”, but I obviously don’t have that problem.
Ah! Jesse, you have hit on something I’m finding very interesting as I read blogs: there is a theory out there that the ease of making VIA (3 of the 4 fundamentals are taken care of for you), will lead more people to learn to love good coffee, and indeed, be a launching point into the world of high-end coffee. I think we can all agree that’d be a good thing!
Thanks again,
Matthew Guiste
Starbucks
BTW, email me your address and I’ll be happy to send you some samples.
[...] I haven’t bothered to think about it, really. But no matter, because in an overlooked post on cleanhotdry, superfriend-of-Myriade George has done it for us. It’s stunning to be reminded of how [...]
I actually recently brought some Starbucks beans just to see what they were like, It seems like heresy, but they aren’t too bad, and were actually at average prices for beans in Australia.
I’d like to try some of these more up market beans, but I can’t find anywhere that will sell / ship to Australia, any suggestions?
@ Matthew
Hey Matthew,
That’s pretty cool that you take the time to read around and see what’s up in other parts of the industry, I appreciate you not only reading this but responding as well.
Now, forgetting about costs and marketing for a moment – I can understand why someone would have a use for instant coffee (like you said, flying, in a hurry, etc.), however I fully believe that this is a giant leap backwards in educating customers on coffee. All the care and work that goes into making it, from the growing and picking of the cherry on the farm all the way through to the barista serving it becomes forgotten and irrelevant.
I’ve yet to come across anything worth doing that is ‘instant’, and coffee is no exception.
@ Micheil
I haven’t ever been to Australia myself, but I asked a friend who knows the scene and he gave me 3 places.
Mecca Espresso (can’t find a website)
Sydney, 67 King Street / (02) 9299 8828
The Source Espresso, Sydney
http://www.thesourceespresso.com/
Brother Baba Budan, Melbourne
http://www.brotherbababudan.com.au/
These are all in Australia and should provide you with more coffee than you’ll know what to do with.
@george Thanks for that list of suppliers, I’ve forwarded it across to a few people who can check them out for me.. Can’t wait to actually get some premium coffee
ha, I met the owner’s of Brother Baba Budan in Japan
@George
You’re my favorite.
I love reading your posts.
Pretty sure that’s me in the reflection of the French press…