Starbucks (SBUX) and Target (TGT) are teaming up to lure in holiday shoppers with an exclusive beverage only available at the coffee chain’s Target cafés.
Frozen Peppermint Hot Chocolate will be available at Target (TGT) Starbucks’ (SBUX) cafés starting tomorrow, November 18, the first-ever holiday drink collaboration between the two. Target Circle 360 members get 24-hour early access to the drink on November 17.
“We wanted to create something festive and fun just for Target guests,” says Alicia Binion, from the Starbucks beverage development team. “The Frozen Peppermint Hot Chocolate is a delicious beverage that brings together rich chocolate and cool peppermint flavors, as well as red and green sprinkles for a pop of color and crunch. It’s a sweet way to pause during the holiday rush and enjoy a little seasonal cheer.”
Faced with two consecutive quarters of negative comparable sales, Target (TGT) hopes the exclusivity of the holiday beverage will lure in buyers and give the retailer a much-needed boost during the crucial holiday season, differentiating itself from rivals Walmart (WMT), Costco (COST), and Dollar General (DG).
Under an agreement established in 2003, the Starbucks (SBUX) coffee shops are operated by Target employees on Target-owned floor space, with the retailer paying a licensing fee and percentage of sales to Starbucks (SBUX).
The news has failed to generate any interest in either Target (TGT) or Starbucks’ (SBUX) stock, both of which are trending lower in Monday’s trade.