Starbucks isn’t just launching another drink. With its latest Refreshers debut, announced Monday, the coffee giant is expanding one of its fastest-growing businesses as it races to win customers long after the morning coffee rush ends.
Beginning July 14, Starbucks customers will be able to order any Refresher drink blended, the latest move in the company’s effort to expand what executives describe as a $2 billion beverage platform.
The launch follows April’s rollout of customizable Energy Refreshers, which Starbucks executives said recently exceeded expectations and helped drive new customer occasions.
Refreshers, which are iced juice and tea drinks often mixed with fruit pieces, have become one of Starbucks’ biggest beverage businesses since launching in 2012, helping drive traffic later in the day as the company looks to expand beyond its traditional morning coffee roots.
“The success of Refreshers reflects an evolution in how customers are engaging with Starbucks, with a growing preference for cold, customizable beverages alongside our core coffee offerings,” Dana Pellicano, Starbucks’ senior vice president of global product experience, told Business Insider.
Starbucks said Refreshers are helping drive growth in afternoon visits, an area the company has increasingly focused on as it seeks new sources of traffic. It sees customization as a key reason for the platform’s success.
The strategy reflects a broader shift underway across the restaurant industry, as chains compete not only with each other but also with energy drinks, functional beverages, and social-media-fueled drink trends for younger consumers’ attention and spending.
“Since Refreshers first launched in 2012, we’ve seen increased interest in drinks that are flavor-forward, visually compelling, and easy to personalize,” Pellicano added.
“Chains are no longer just competing with each other for coffee occasions,” Noah Pozin, a food, agribusiness, and beverage industry consultant at Truist, told Business Insider. “They are competing with energy drink brands, bottled teas, functional waters, and customized soda concepts for the broader ‘cold, caffeinated, customizable treat’ occasion.”
Chasing younger tastes
Dutch Bros has expanded its energy-drink offerings, which executives say now account for about 25% of its business. Customized soda chains have also surged in popularity, and restaurant brands from McDonald’s to Taco Bell are investing heavily in cold beverages. Analysts at JPMorgan and KeyBanc have pointed to a growing pipeline of innovation from both Starbucks and Dutch Bros as chains race to capture demand for customizable, functional drinks.
Part of what’s driving that demand is a shift in how younger consumers think about beverages.
“Gen Z and millennials treat beverages more like personal expression, social content, functional fuel, and affordable indulgence,” Pozin said.
As younger consumers navigate persistent inflation, housing affordability challenges, and broader economic uncertainty, beverages have become a relatively accessible luxury, he said. Consumers are increasingly looking for opportunities to experiment, customize, and discover new products without making a major purchase.
That trend has made beverages especially attractive to restaurant operators. Drinks typically carry higher margins than many food offerings and can help drive customer frequency throughout the day, making them an increasingly important growth engine for chains seeking new revenue streams.
Social media has only accelerated the trend.
“One of the biggest insights for us has been just how creative customers are with Refreshers,” Pellicano said. “From early on, we saw customers take the core beverages and make them their own — whether that was swapping in coconut milk, which led to the creation of the Pink Drink, or layering in new flavors, textures, and colors.”
“What started as customization quickly became culture,” she added.
Pellicano said social media has become a “real-time feedback loop and source of inspiration” for Starbucks, helping the company spot emerging drink trends and scale them more quickly.
With blended Refreshers arriving this summer — and additional innovations already in the pipeline — Starbucks is signaling that its future growth won’t come solely from coffee.
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