Starbucks is expanding its health and wellness offerings by testing coconut water beverages in hundreds of additional stores.
The new Coco Matcha and Coco Cold Brew—which layers creamy matcha foam or silky cold brew foam atop refreshing coconut water—are the latest products the company is testing as part of its plan to accelerate health and wellness innovation.
Coco Matcha features hydrating coconut water over ice with a creamy unsweetened Matcha Cold Foam. This refreshing drink offers a subtle, tropical sweetness that complements the matcha.
The Coco Cold Brew is an iced coconut water topped with cold brew foam. This refreshing drink offers a tropical sweetness that complements the foam.
Health and wellness push
Beginning Thursday, the coffee giant will introduce Coco Matcha and Coco Cold Brew beverages for testing in over 400 stores, according to a CNBC report.
These trial locations will be in key cities, including New York, Los Angeles, and the broader Chicago metropolitan area. The new drinks feature a layer of either matcha foam or cold brew foam atop coconut water.
Starbucks initially piloted its coconut-based drinks in New York City through its “Starting Five” innovation program.
This program involves testing new concepts in five select coffeehouses and gathering feedback from baristas and customers before wider implementation. Starbucks has not yet disclosed plans for expansion beyond this month’s regional test.
“Health and wellness at Starbucks isn’t a trend — it’s a long-standing commitment. Expanding the test of our Coco Matcha and Coco Cold Brew beverages is the next step to accelerate our health and wellness beverage innovation plan,” Dana Pellicano, senior vice president of Starbucks global product experience, was quoted in the CNBC report.
We are incorporating real-time feedback with a focus on transparency, functionality, and evolving consumer needs.
Cold foam and protein innovation
Cold foam has emerged as a highly popular modifier for the chain, experiencing a 23% year-over-year growth, as reported by CEO Brian Niccol during the latest earnings call.
In an effort to boost sales following a period of disappointing financial outcomes, Starbucks plans to introduce protein cold foam late in the fourth quarter.
Niccol told analysts:
Protein cold foam with no added sugar is an easy way to add 15 grams of protein to virtually any cold beverage. And customers can also add the flavor of their choice.
Industry trends and market strategy
Leading restaurant chains are expanding their beverage menus, a trend exemplified by Starbucks’ broadened test.
This initiative is largely fueled by younger consumers’ desire for personalised cold drinks and healthier choices.
According to Technomic’s 2025 Away-From-Home Beverage Navigator Report, released in July, the top 500 chains have increased their beverage offerings by over 9% in the past year, with a significant emphasis on cold drinks.
The market researcher noted that specialty coffees and energy drinks have experienced the most significant menu growth over the past two years, while hot coffee and tea beverages have seen a decline.
Under Niccol’s leadership, Starbucks is implementing its “Back to Starbucks” turnaround strategy, which includes cafe renovations and menu updates.
This strategy has already shown positive results, with Starbucks executives reporting increased satisfaction among younger customers.
Niccol highlighted to analysts that customer value perceptions reached nearly two-year highs in the recent quarter, primarily due to improved engagement with Gen Z and millennials, who constitute over half of their customer base.
Starbucks aims to increase business by focusing on innovation and enhancing customer experiences through its new “Green Apron Service” strategy.
Despite exceeding US sales expectations last quarter, sales still saw a 2% decline compared to the previous year.
This year, Starbucks shares have seen a decline of just over 1%.
Starbucks plans to test coconut water drinks in the Midwest, specifically in Cedar Rapids, Iowa; St. Louis, Missouri; Springfield, Illinois; South Bend, Indiana; and Madison and Milwaukee, Wisconsin, according to the report.
These trials will be in addition to those conducted in the New York, Los Angeles, and Chicago areas.
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