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Starbucks rethinks stance on young customers

Company acknowledges that teens and children are part of market base

Image: Dustin Doty
Dustin Doty, 13, enjoys a pastry with his beverage at the Starbucks annual shareholders meeting this year. Doty's mother recently purchased shares of Starbucks stock for him.
Elaine Thompson / AP file
By Allison Linn
Senior writer
msnbc.com
updated 7:43 p.m. ET Sept. 10, 2007

Alison
Allison Linn
Senior writer

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Kamyra L. Harding never gives her son coffee or soda, and rarely opts for treats such as chocolate cupcakes. But about twice a month, the mom does give in to her 4-year-old son Garrett David Brand’s request for a Chai tea latte from Starbucks.

“People here already know us,” Harding said on a recent visit to a Starbucks on New York's Upper West Side. “They know we want extra milk.”

Garrett has been a regular Starbucks customer since “he could hold a cup,” his mother says. Now when he passes a Starbucks he says, “I want to buy this tea.”

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Starbucks, keenly aware of the pitfalls of being seen as trying to lure kids to drink sweet, caffeinated beverages, has for years insisted that it does not market to children — even as stroller traffic jams build outside some stores and teenagers pack others.

Now, however, the company is revising its stance on kids, acknowledging that the under-18 set has become part of the coffee chain’s customer base.

Starbucks spokesman Brandon Borrman said there are still no plans to market specifically to children, and grown-ups need not worry that the Cartoon Network will be playing on the flat-panel screen of their neighborhood Starbucks anytime soon.

But Borrman said Seattle-based Starbucks is considering whether to add new drinks or drink sizes that better meet the needs of kids or teens.

Right now, it only lists limited kids’ items, such as milk and hot chocolate, in a smaller size, while teenagers have the choice of adult-sized, and often heavily caffeinated, beverages. A 16-ounce Caramel Frappucino coffee drink, for example, has nearly three times the caffeine as a 12-ounce can of regular Coke or Pepsi.

Starbucks lattes, Frappuccinos and other drinks generally come in 12-ounce “tall,” 16-ounce “grande” and 20-ounce hot or 24-ounce cold “venti” size. An eight-ounce “short” size is often available but not always listed on the menu.

“We need to be realistic about who comes into our stores, so if we have children who are coming into our stores that are on their own, we want to make sure that we have products that are appropriate to that age group,” Borrman said. “Do we have an alternative to a venti-size caffeinated beverage that would be more appropriate?”

Borrman said the company also now recognizes that it is a family destination. That means you might see an ad for the company that features a family — although you wouldn’t likely see a Starbucks ad with a child on his or her own.

“What we want to do is recognize the fact that there are people who are under the age of 18 who come into our stores,” he said.

The company also is looking at whether other items in the store that might appeal to kids, such as its signature line of teddy bears, should be placed in parts of the store where kids can’t get to them as easily.

As of now, however, Borrman said Starbucks is still evaluating how to cater to younger customers and doesn’t know when more formal decisions will be reached.

Analyst John Owens of Morningstar said it is pretty clear that teens have become part of Starbucks’ regular customer base.

He also admits that even his 3-year-old recognizes the company’s logo from frequent trips there with adults. At his local Starbucks, he said, the baristas refer to steamed milk as a “babyccino.”

“While Starbucks hasn’t actively marketed towards that demographic, I think the Starbucks brand has appealed to teenagers, and so there’s certainly an opportunity there for the company to increase business,” he said.

But, he said, the company walks a fine line if it is seen as doing anything specifically to appeal to a younger audience.


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