Starbucks’ Coco Matcha and Coco Cold Brew drinks.
Courtesy: Starbucks
Starbucks will expand its test of coconut water beverages to hundreds of more stores, as it leans further into health and wellness.
Starting Thursday, the coffee giant will test its Coco Matcha and Coco Cold Brew drinks in more than 400 stores across major cities including New York, Los Angeles and the greater Chicago area. The drinks layer matcha foam or cold brew foam over coconut water.
Starbucks first tested the coconut beverages in New York City as a part of its “Starting Five” innovation program, in which it tests out new ideas in five coffeehouses and seeks feedback from its baristas and customers before pushing those ideas into additional stores. Starbucks did not share plans for further expansion beyond the regional test this month.
“Health and wellness at Starbucks isn’t a trend — it’s a long-standing commitment. Expanding the test of our Coco Matcha and Coco Cold Brew beverages is the next step to accelerate our health and wellness beverage innovation plan,” Dana Pellicano, senior vice president of Starbucks global product experience, said in a statement to CNBC. “We are incorporating real-time feedback with a focus on transparency, functionality, and evolving consumer needs.”
Cold foam has become one of the chain’s most popular modifiers, as it grew 23% year over year, CEO Brian Niccol told analysts on its most recent earnings call. Starbucks will launch protein cold foam late in the fourth quarter, part of its push to kick-start sales after a stretch of financial results that has disappointed Wall Street.
“Protein cold foam with no added sugar is an easy way to add 15 grams of protein to virtually any cold beverage. And customers can also add the flavor of their choice,” Niccol told analysts.
The expanded Starbucks test is part of a larger trend of top restaurant chains increasing beverage options, driven in part by younger consumers who crave customized cold drinks and healthier options.
The number of beverages offered by the top 500 chains has increased more than 9% over the past year, according to Technomic’s 2025 Away-From-Home Beverage Navigator Report released in July. Companies have leaned even more into cold drinks. Offerings such as specialty coffees and energy drinks have seen the most growth on menus over the past two years, as hot coffee and tea beverages on menus decline, the market researcher reported.
Starbucks is in the middle of its “Back to Starbucks” turnaround plans under Niccol, featuring more cafe renovations and menu changes. As the strategy takes shape, Starbucks executives have said the company has seen increases in satisfaction among younger consumers. Niccol told analysts customer value perceptions were near two-year highs in its most recent quarter, driven by gains among Gen Z and millennials, who make up over half its customer base.
Starbucks is betting that innovation, coupled with better experiences under its new “Green Apron Service” strategy, will help to boost business. While Starbucks also posted better-than-expected U.S. sales last quarter, they still fell 2% from the prior-year period.
Starbucks shares have fallen just more than 1% this year.
In addition to the New York, Los Angeles and Chicago areas, Starbucks will also test the coconut water drinks in select cities in the Midwest including Cedar Rapids, Iowa; St. Louis, Missouri; Springfield, Illinois; South Bend, Indiana; and Madison and Milwaukee, Wisconsin.
