The encyclopedia · Product & Design · Product decision · 2023–2024
Starbucks bet a national launch on olive oil coffee — gone in under a year
Howard Schultz's final flagship, Oleato, went nationwide in January 2024; by November it was off US and Canada menus after complaints of taste — and stomachs.
Starbucks · 2024-10-29
What happened
Oleato was the last flagship project of longtime CEO Howard Schultz before he stepped down: after watching Sicilians take olive oil daily, he had the beverage team blend Partanna olive oil into coffee. The line launched in Italy in early 2023, spread to Southern California, then went nationwide across the United States and Canada in January 2024 as an olive-oil latte, an iced shaken espresso and an infused cold foam.
Inside the company the launch was talked up as a landmark. The marketing chief called it one of Starbucks' biggest launches in decades, and Schultz's successor Laxman Narasimhan later described it as a top-five launch of the past five years in brand awareness. Outside, reception ran the other way from the start: critics called the drinks a stunt, and customers complained the oil sent their stomachs into turmoil.
On October 29, 2024, Starbucks confirmed that Oleato would leave US and Canada menus from early November — less than a year after going nationwide. The company said the decision had been made before incoming CEO Brian Niccol arrived, but it fit his stated plan to simplify what he called an overly complex menu. Only Italy, China and Japan kept the drinks on.
Why it happened
- The product began as the founder's personal health ritual, and conviction at the top stood in for evidence that customers wanted oil in their coffee
- The rollout outran the reception: nationwide expansion and 'biggest launch' claims came while reviews were negative and stomach complaints were spreading
- The drinks added steps to every order on a menu the next CEO called overly complex — an item that slows the line pays rent on every cup it fails to sell
The lesson
A founder's personal ritual is not a market test — launch where you can learn small before the whole menu, and the year's marketing budget, is committed to it.
Sources
- CNBC — Starbucks Oleato olive oil drinks leaving US cafes (Oct 2024)
- CNN — Starbucks abandons the olive oil coffee brainchild of Howard Schultz (Oct 2024)
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