MarketWatch

Pumpkin-spice lattes in July? Why these companies are beating Starbucks to the punch.

By Charles Passy

Starbucks hasn't announced the launch date for its beloved fall drink, but pumpkin-spice beverages and other offerings are now available elsewhere even in early July

Fans of Starbucks (SBUX) are likely anticipating the annual arrival of the coffee chain's pumpkin-spice latte, which is rumored to come Aug. 22 this year.

But here's the real news: The season for all things pumpkin spice is actually well underway.

Some companies launched their fall-flavor lineups days, or even weeks, ago. Consider that 7-Eleven (JP:3382) rolled out its pumpkin-spice menu of beverages, including a pumpkin-spice Slurpee at select stores, on Aug. 1. In a press release, the convenience-store chain said it "is here to satisfy your seasonal yearnings."

Or consider that Old World Christmas, a company that specializes in ornaments, candles and décor items themed around Christmas and other holidays, introduced a spiced-pumpkin crème candle in July and has already sold hundreds of them.

And while Starbucks wouldn't comment on the date it will launch the pumpkin-spice latte (or PSL, as the drink is sometimes called) and the rest of its fall menu this year, the company did confirm that its pumpkin spice-flavored creamers and packaged coffee drinks have already returned to store shelves. In so doing, the company said it is "giving coffee fans their first chance to enjoy the iconic seasonal flavor."

It may be worth remembering that when Starbucks first unveiled the pumpkin-spice latte more than 20 years ago, it was conceived as a truly in-the-fall drink, with a start date in September. But over time, that start date has come earlier and earlier.

Competitors have taken heed: Dunkin' also used to bring out its pumpkin-spice drinks in September, but now has generally jumped ahead of Starbucks. Last year, for example, Starbucks launched on Aug. 24 and Dunkin' on Aug. 16. Dunkin' wouldn't comment on its release date this year.

Some companies want to move up the calendar in even bolder ways. Danone (FR:BN), the company behind some prominent coffee and creamer brands, including ones under the International Delight and Dunkin' labels, came out with a few of its pumpkin-spice products as early as July 1.

In other words, pumpkin-spice season now arrives before the Fourth of July.

How to explain the early timing? Neal Applefeld, president of Old World Christmas, told MarketWatch it's all about beating the competition to the punch. "Everybody wants to get the edge," he said.

Others note that the pumpkin-spice season is increasingly being tied, at least in consumers' minds, to the start of the school calendar - meaning the fall "begins" when the kids are back in class.

While that start time is after Labor Day and close to the actual beginning of autumn in some school districts, it can be in August or even late July in others, according to a recent Pew Research Center study. And a CNN report from a few years ago noted that districts are increasingly opting to make the date earlier for a variety of reasons, including giving teachers "more instructional time before statewide assessment tests in the spring."

Either way, there's an obvious profit motive for brands and retailers behind the early push - namely, the expanded season creates a longer sales period. It "could lead to one or several more purchases per buyer since they now have more time to enjoy" the drinks or other pumpkin-spice offerings, said Reilly Newman, a brand strategist.

It also probably helps that some of those coffee drinks are being served cold, so it's not like consumers are trying to enjoy a hot latte while they sweat it out at the beach. Klatch Coffee, a Southern California-based coffee chain, says cold pumpkin-spice offerings now often lead the way, as do chilled coffee beverages (think cold brew) throughout the rest of the year.

"Coffee is definitely not a hot drink anymore," said Klatch Chief Executive Heather Perry. She added that she launched her fall menu, including pumpkin-spice drinks, in early August largely because her customers were frustrated when she waited till after Labor Day in the past.

"I've never gotten so much hate mail. 'Where is my pumpkin?' they asked," Perry said.

With all this defying of seasonal norms, some wonder if we may see the day when the fall flavor simply becomes a year-round offering.

Take what happened when Thrive Juice Lab, a California chain, made its pumpkin-themed smoothies and bowls permanent items on its menu.

"We didn't see any drop in demand," said owner Cole Carson. He added that it behooves any business to pay attention to what the customer wants regardless of what the calendar says. "We're going to go with what sells," he said.

Then again, there are also those who refuse to buy into pumpkin-spice mania, even in the fall.

Mikael Olsson, owner of Zibetto Espresso Bar, which has three locations in New York City, refuses to put any pumpkin drinks on his menu. He considers himself a purist and prefers only the traditional java beverages.

"I don't see any reason to give any extra flavor to coffee," Olsson said.

-Charles Passy

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

 

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08-10-24 1044ET

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