Starbucks enters energy drink market in partnership with Pepsi, launches BAYA Energy

Starbucks recently released its new energy drink, Baya Energy. According to The Street, the drinks were developed through the North American Coffee Partnership, which Starbucks and Pepsi PEP launched together as a way to develop new energy and coffee products for grocery and convenience.

Baya will be available for purchase at stores and online starting this week, and will go on sale at US Starbucks stores on 1 March, with a suggested retail price of $2.89. The ready-to-drink canned beverage is said to be “crafted from caffeine naturally found in coffee fruit as well as antioxidant vitamin C for immune support”.  Each 12-ounce can contains 90 calories and 160 mg of caffeine and it comes in three flavours: mango guava, raspberry lime and pineapple passionfruit. 

“We have always listened to customers and kept an eye on emerging trends to determine what to create next,” said Starbucks VP of Americas Channel Development Chanda Beppu. "Most recently, we've seen a steady increase in energy drink consumption,” she added.

According to Euromonitor National, the US energy drink retail market reached $18 billion in 2021, up from about $16 billion in 2020.  Market research firm Mintel revealed similar findings, stating that total energy drink sales increased 9.2% in 2020, signalling an important opportunity for Starbucks.

In addition to Baya, Starbucks is also rolling out new versions of old favourites in the grocery aisle.