Starbucks Expands Coconut Water Beverage Test to 400+ Stores Amid Health and Wellness Focus.

Starbucks is expanding its test of coconut water beverages, including Coco Matcha and Coco Cold Brew drinks, to hundreds of stores across major cities. The move is part of the company's health and wellness strategy, driven by younger consumers who crave customized cold drinks and healthier options. The test is the next step in Starbucks' "Starting Five" innovation program, which seeks feedback from baristas and customers before pushing new ideas into additional stores.

Starbucks is continuing its push into the health and wellness space with an expanded test of coconut water beverages. The coffee giant will be testing its Coco Matcha and Coco Cold Brew drinks in over 400 stores across major cities including New York, Los Angeles, and the greater Chicago area, along with select cities in the Midwest. The test will begin on August 21, 2025 [1].

The drinks feature matcha foam or cold brew foam layered over coconut water, a trend that has been gaining popularity among younger consumers who seek healthier and customized beverage options. This expansion is part of Starbucks' "Starting Five" innovation program, which tests new ideas in five coffeehouses before rolling them out to additional stores based on feedback from baristas and customers [1].

Cold foam has become one of Starbucks' most popular modifiers, growing by 23% year over year. The company is planning to launch protein cold foam late in the fourth quarter, further emphasizing its commitment to health and wellness [1].

This move is part of a larger trend among top restaurant chains to increase beverage options, driven by younger consumers' demand for customized cold drinks and healthier choices. The number of beverages offered by the top 500 chains has increased by more than 9% over the past year, with specialty coffees and energy drinks seeing the most growth [1].

Starbucks is also in the midst of its "Back to Starbucks" turnaround strategy, which includes cafe renovations and menu changes. The company has seen improvements in customer satisfaction, particularly among Gen Z and millennials, who make up over half its customer base [1].

While Starbucks posted better-than-expected U.S. sales last quarter, they still fell by 2% from the prior-year period. The company's shares have fallen by just over 1% this year, indicating market concerns over its financial performance [1].

References:
[1] https://www.cnbc.com/2025/08/21/starbucks-expands-test-of-coconut-water-beverages.html