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Don’t forget the coffee

Starbucks is planning a big marketing push to get consumers to drink its . . . coffee? Jason Paur explains.

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BRIAN WATT: Did you know Starbucks serves coffee? Well, the company has a new marketing plan that aims to remind you of just that. Jason Paur explains.


JASON PAUR: Starbucks is feeling the heat of summer as same-store sales failed to measure up to expectations in the most recent quarter.

Starbuck’s is facing increasing competition from McDonalds and Dunkin’ Donuts in the premium coffee market, but investment analyst Don Gher says one likely culprit for sagging sales is Starbucks’ focus on juice blends and other cold drinks this summer.

GHER: . . . And those led to longer lines. As people saw the longer lines, they decided not to stay in the stores and went elsewhere. Secondly, there could well have been some sort of an economic impact from the effects of higher gasoline prices.

Gher says with cooler weather on the way, the company needs to repeat former growth rates to keep investors happy in the coming quarter.

I’m Jason Paur for Marketplace.