WHY STARBUCKS ONCE SOLD OLIVE OIL COFFEE
Starbucks once looked at two things that don't usually go together:
Coffee
and
Extra virgin olive oil
And decided:
Let's put them together.
The result was called:
Oleato.
IT STARTED IN SICILY
The idea came from Starbucks founder Howard Schultz.
While in Sicily, Schultz learned about the Mediterranean tradition of having a spoonful of olive oil every day.
One morning, while drinking coffee, he decided to try the two together.
According to Starbucks, that experiment inspired the Oleato concept.
THEN STARBUCKS TURNED IT INTO A PRODUCT
Instead of simply adding olive oil to a cup of coffee at home, Starbucks developed an entire line of drinks using Partanna extra virgin olive oil.
The company described the result as a smoother, richer coffee experience.
The first Oleato drinks included:
Oleato Caffè Latte
Oleato Iced Shaken Espresso
Oleato Golden Foam Cold Brew
AND THEY LAUNCHED IT IN ITALY
This wasn't random.
Starbucks had been inspired by Italian coffee culture since Schultz visited Milan in 1983.
Italy eventually became the first market to receive Oleato.
The drinks launched in Starbucks Italy and the Milan Reserve Roastery on February 22, 2023.
WHY ITALY?
There's a business strategy behind this.
Starbucks wasn't simply introducing:
“Coffee with oil.”
It was creating a story around:
Italian coffee culture
Mediterranean olive oil
Starbucks
The ingredients already had cultural associations with quality, tradition and lifestyle.
Starbucks combined them into something completely new.
THEN IT WENT GLOBAL
After Italy, Starbucks began introducing Oleato in other markets.
It eventually reached locations including:
United States
Canada
United Kingdom
France
Japan
China
among others.
In January 2024, Starbucks announced Oleato beverages would become available across its U.S. company-operated and licensed stores.
IT WASN'T JUST ONE DRINK
Starbucks created multiple versions.
For example:
Oleato Caffè Latte
Espresso + oatmilk + extra virgin olive oil
Oleato Golden Foam Cold Brew
Cold brew + vanilla sweet cream foam + olive oil
Oleato Iced Cortado
Espresso + oatmilk + olive oil + orange bitters
WHY WOULD STARBUCKS DO THIS?
Because Starbucks wasn't only selling coffee.
It was trying to create a:
new coffee ritual.
That's an important distinction.
Instead of competing only on:
“Our coffee tastes better.”
Starbucks could create an entirely new category of experience.
AND THERE WAS A BIG BUSINESS ANGLE
Oleato also created an opportunity to connect Starbucks with another premium category:
olive oil.
Starbucks used Partanna extra virgin olive oil in the drinks.
Interestingly, Starbucks' 2024 proxy statement disclosed that Howard Schultz indirectly held an approximately 19% ownership interest in Partanna and served on its board, while Starbucks purchased olive-oil commodities from a Partanna subsidiary.
So the story wasn't simply:
Starbucks discovered olive oil.
There was also an existing business relationship behind the ingredient.
THIS IS WHAT MAKES THE STORY INTERESTING
Starbucks could have created:
another caramel drink
another vanilla drink
another seasonal latte
Instead, it took something people already knew:
olive oil
and connected it to something people already bought:
coffee.
THE PRODUCT WAS ALSO A BRAND EXPERIMENT
Starbucks has always tried to sell more than caffeine.
Its stores are designed around the idea of a coffeehouse experience.
Oleato pushed that idea further:
What if the coffee itself became a completely different ritual?
That's why Starbucks described Oleato as a new coffee ritual rather than simply another flavor.
THE CRAZY PART
Olive oil and coffee sound like two completely separate industries.
But Starbucks found a way to connect them through:
Culture
Storytelling
Premium ingredients
Curiosity
And most importantly:
A reason to try something new.
SIMPLE IDEA
Olive oil
↓
Coffee
↓
Starbucks experiments
↓
Oleato
↓
Italy launch
↓
Global expansion
The product wasn't created because customers were demanding:
“Please put olive oil in my coffee.”
The company created something customers didn't know they wanted to try.
MAACAT PERSPECTIVE
One of the strongest ways to create a new product isn't always to invent a new ingredient.
Sometimes it's to take:
A + B
and ask:
“What happens if we put them together?”
Coffee already existed.
Olive oil already existed.
Starbucks didn't invent either.
It invented the combination.
And sometimes that's enough to create an entirely new product.
