⏱ 2 min read
The Short Version
Blue Bottle is ditching its oat milk default for whole milk as consumer habits pivot, while Italy launches a high-level diplomatic strategy to stabilize global supply chains. Meanwhile, Starbucks China is tightening seating rules to combat aggressive local rivals.
Blue Bottle has officially ended its three-year experiment with oat milk as its standard dairy alternative. In 2021, the chain pivoted to oat milk across U.S. and select international stores to lower carbon emissions, but current consumer data tells a different story. The company is reverting to whole milk as its default, noting that customer habits have shifted toward a dual demand for both plant-based and traditional dairy options. Guest preferences have evolved since we first introduced oat milk as our default, and today we see strong demand for both dairy and plant-based options.
Guest preferences have evolved since we first introduced oat milk as our default, and today we see strong demand for both dairy and plant-based options.
Diplomacy and supply chain resilience
While retail giants adjust to consumer whims, governments are moving toward high-level structural shifts. At an event in Rome earlier this month, Italy’s Ministry of Foreign Affairs announced an international coffee strategy. This initiative aims to unite government leaders from producing nations like Uganda, Colombia, Ethiopia, and Rwanda with major industry players including the International Coffee Organization (ICO) and UNIDO. Crucially, the plan integrates private sector leadership from Lavazza and illycaffé to drive sustainability.
Edmondo Cirielli, Italy’s Deputy Minister of Foreign Affairs and International Cooperation, framed the move as a way to leverage economic diplomacy and research to benefit origin countries. By combining development cooperation with Italian business expertise, the ministry intends to build a more resilient and fair global supply chain.
Adaptation in variety and retail space
The conversation around climate change is also refining how professionals view crop resilience. For years, Robusta has been championed as the primary solution to a warming planet due to its hardiness compared to Arabica. However, new research published in Scientific Reports suggests there is no single “cure-all” variety. Instead, the study argues that success depends on growing specific varieties in environments where they are most compatible, rather than relying on a blanket shift to one species.
In the retail sector, competition is forcing immediate operational changes. In China, Starbucks is facing pressure from local rivals like Luckin Coffee, leading to a new policy effective this month. The rule now requires every person occupying a seat at a Starbucks China location to have purchased an item. This move highlights the intense battle for market share as domestic chains continue to disrupt the traditional coffee landscape through rapid expansion and aggressive pricing.
Do you think major coffee chains should prioritize environmental goals even if they conflict with current consumer preferences?
Questions & Answers
Why did Blue Bottle change its default milk option?
Blue Bottle changed its default milk option because consumer data showed a shifting demand for both traditional dairy and plant-based alternatives. While the company originally pivoted to oat milk in 2021 to reduce carbon emissions, current guest preferences have evolved significantly. By reverting to whole milk as the standard, the chain aims to better accommodate customers who desire both dairy and non-dairy choices simultaneously rather than forcing a single alternative.
What is Italy's new international coffee strategy aiming to achieve?
Italy's new international coffee strategy aims to build a more resilient and fair global supply chain through economic diplomacy and research. The initiative unites government leaders from major producing nations like Uganda, Colombia, Ethiopia, and Rwanda with industry players such as the International Coffee Organization. By integrating private sector leadership from brands like Lavazza and illycaffé, the plan leverages development cooperation and business expertise to benefit origin countries.
How should coffee producers address crop resilience against climate change?
Coffee producers should focus on growing specific varieties in environments where they are most compatible rather than relying on a single species. While Robusta has long been viewed as a hardier solution to a warming planet compared to Arabica, recent research suggests there is no universal cure-all variety. Success depends on matching specific coffee varieties to their ideal environmental conditions to ensure long-term crop resilience and stability in a changing climate.
How is Starbucks China responding to competition from local coffee brands?
Starbucks China is implementing a new policy requiring every person occupying a seat in their locations to have purchased an item. This operational change is a direct response to intense pressure from local rivals like Luckin Coffee, which are disrupting the market through aggressive pricing and rapid expansion. The rule highlights the intense battle for market share as global giants adjust their retail strategies to compete with domestic Chinese chains.
Originally reported by Barista Magazine.
