Remember that mysterious “alchemy” comment from the $SBUX call? As though he was presenting this decade’s iPhone, Schultz stated that Starbucks would "introduce something much bigger than any new promotion or beverage” in the coming month. Something he claims would be a “transformative new category and platform” and “a game changer” before telling analysts on the call he’d have to kill them if he divulged more.

Olive oil. It was olive oil.

Or to be precise, olive oil-infused coffee. The “Oleato” range was the brainchild of Schultz's recent trip to Sicily; where he engaged in the Mediterranean custom of taking a spoonful of olive oil each day alongside his morning coffee. He describes the texture as buttery. What did we expect? This is a coffee company after all. But this isn’t quite as “transformative” as Schultz makes out; Bullet Proof coffee has been selling high-quality fats (such as butter and MCT) in their coffee for years. There are benefits to adding good fats to your diet, and short of blending avocados into their beverages this does intrigue me as a consumer. I won’t overstep the mark and share my unqualified dietary opinions. But I love coffee and I love olive oil. While it was not Starbucks who broke the seal, they certainly have the platform to make this a trend, if it ever becomes one.

Here’s my slight concern. If you are like me and your coffee order tends to be a double espresso, that will set you back ~10 calories with a negligible amount of carbs. But what about those sugar-crazed regulars? Cold drinks account for ~75% of beverage sales these days so what about a grande caramel Frappuccino? That will set you back ~360 calories with a whopping 48g of carbs. Throw in a tablespoon of olive oil and that's another ~120 calories. Great if you are looking to bulk up, not so great if you are the unsuspecting consumer wondering why you're packing beef all of a sudden. That said, if history is anything to go by, I doubt this will be a major concern for the general public. If you substitute the sugar and enjoy a clean coffee with a dash of olive oil, in moderation, I don't see the harm.

The real takeaway here is that olive oil will bolster the high-margin, fast-growing, modifiers business; which generates more than $1 billion in incremental revenue each year, up more than 200% since 2019.

Interestingly, Starbucks decided to launch this product in Italy of all places; the motherland of espresso and a country they have struggled to gain market share in; operating just 23 stores since opening their first store in 2018.

Anyway, I won’t knock anything food related until I try it for myself.