Starbucks Bugs Customers – Adding Bugs To Drinks Is Not A Good Idea

Recently, Starbucks decided to use a new colorant for is pink drinks and glazing. Instead of using milk products and real strawberries, the coffee chain decide to use chochineal extracts that consist of crushed bugs from South America. 

Cochineal extract is allowed by the FDA as a food colorant. Since it is cheaper to use, Starbucks used it to color its popular Frappuccino Strawberry and Strawberry Smoothies. 

Vegans and vegetarians were not pleased when they found out that their soy milk Frappuccinos and Smoothies suddenly contained animal products. Customers in general were bugged by the idea that there were bugs in their Starbucks.

As usual, the power of social media was harnessed; sentiments were vented in online forums and in YouTube videos. The online petition on Change.org got almost 7,000 signatures.

Starbucks got the marketing message and announced that from now on, lycopene extracts (from ripe tomatoes) will be used. Cliff Burrows, the President of Starbucks U.S., apologized and posted the following blog post:

“As I first shared on March 29, we’ve learned that we fell short of your expectations by using natural cochineal extract as a colorant in four food and two beverage offerings in the United States. Our commitment to you, our customers, is to serve the highest quality products available. As our customers you expect and deserve better – and we promise to do better.

After a thorough, yet fastidious, evaluation, I am pleased to report that we are reformulating the affected products to assure the highest quality possible. Our expectation is to be fully transitioned to lycopene, a natural, tomato-based extract, in the strawberry sauce (base) used in our Strawberries & Crème Frappuccino® blended beverage and Strawberry Banana Smoothie.

Likewise, we are transitioning away from the use of cochineal extract in our food offerings which currently contain it (Raspberry Swirl Cake, Birthday Cake Pop, Mini Donut with pink icing, and Red Velvet Whoopie Pie).

This transition will occur over time as we finalize revisions and manage production. Our intention is to be fully transitioned from existing product inventories to revised food and beverage offerings near the end of June across the U.S.

We thank you for your continued feedback, support and comments, and we encourage you to continue to share your thoughts here as well.”

Although Starbucks bugged its customers, it did excellent crisis management.

Legal oversight, marketing blunder or a stroke of marketing genius?

On Election Day last November, Starbucks launched a one day marketing campaign. It offered a free 12 oz. drip coffee to anyone who voted. However, this is illegal in the US. Federal law prohibits payment of money, goods or services in return for voting. Starbucks advertised the voter promotion on television during the comedy sketch show Saturday Night Live (for a brilliant spoof of the coffee chain click here).

Starbucks did some quick crisis management issued the following statement:
“To ensure we are in compliance with election law, we are extending our offer to all customers who request a tall brewed coffee."

As a result the wires buzzed with, "Did you hear about Starbucks?" which went hand in hand with: "Do you think Obama will win? "

Theis kind of viral buzz is a marketer's dream. Starbucks profited big time from their freebie:

• Many that came in for the free coffee left with purchased sandwiches, cookies or muffins.


• Others opted to upgrade their free plain coffee for a fancy grande mocha frappuccino latte or espresso.


• The Starbucks brand was plastered all over the media

The question remains if Starbucks made an honest mistake (in which case they should fire their legal advisor) or if it was a clever marketing ploy (in which case they should promote that marketing professional to a senior management position).

Quite likely, it was a case of an eager marketing beaver running off with a campaign without clearing it with legal first. If that is so, Starbucks presented us with a wonderful example of effective crisis management.

Although it turned out great for Starbucks in the end, I strongly advise all companies (regardless of industry or location) to run all planned marketing, sales or PR campaigns via their legal department or advisor before launch. This is even more critical if the company operates internationally.