Starbucks chairman and CEO Howard Schultz revealed his aspirations for the new businesses Starbucks has been working on in the company’s Q1 earnings call.There are two in particular that Schultz sees as massively important. He sees them as the company’s future billion-dollar businesses, and big keys to Starbucks’ growth strategy.
VIA instant coffee
Starbucks’ line of instant coffee VIA generated more than $250 million in sales last year, and now has more than 80,000 points of distribution, said Schultz.
He said that the “confidence and muscle memory” Starbucks has gained from VIA is being applied to everything else. Basically, VIA is the prototype for all Starbucks’ new endeavours.
Starbucks’ K-Cup launch was a success, and Schultz is planning on bringing the cups to his own retail stores in order to meet demand. These are the single-serve cups you put into Keurig coffee machines.
“We strongly believe that as we garner additional supply, and continue to execute against our channel rollout plan, we will build a second billion-dollar business within our single-serve portfolio,” said Schultz.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.