Coffee chains are focusing on cold drinks as Gen Z rejects traditional coffees.

Coffee chains are focusing on cold drinks as Gen Z rejects traditional coffees.

The Rise of Cold Drinks: Starbucks and Tim Hortons Compete for the Market

In today’s cafe culture, more and more customers are opting for refreshing and fruity cold drinks over piping-hot cappuccinos. Two major players in the market, Starbucks and Tim Hortons, have recognized this shift and are vying for dominance in the realm of cold beverages.

Starbucks’ Iced Coffee Empire

When it comes to the iced coffee market, Starbucks reigns supreme. A staggering 75% of its beverage sales come from cold drinks, highlighting the overwhelming preference for chilled alternatives. This has been further exemplified by the success of Starbucks’ Refreshers range, which offers customers a delightful combination of fruity flavors infused with green coffee extract.

According to Starbucks CEO Laxman Narasimhan, sales of cold espresso beverages experienced a significant 13% YoY growth in the quarter ending July 2. In addition, cold foam, a popular customization that can only be added to chilled drinks, is the fastest-growing custom addition at Starbucks. The figures speak volumes about the enduring appeal of cold beverages.

Tim Hortons’ Pursuit of Cold Drink Supremacy

With Starbucks’ dominance in mind, Tim Hortons aims to carve out its own share of the cold drink market. Cold beverages now constitute a substantial 40% of drinks sales in Tim Hortons’ native Canada, marking a notable increase from approximately 30% just four years ago.