The strategy: Starbucks is testing better-for-you products in a bid to win over more health-conscious consumers, per Bloomberg.

The examples:

• The company is experimenting with ways to remove canola oil from its ingredient list in a nod to rising consumer skepticism of seed oils, despite a lack of conclusive evidence linking them to negative health outcomes. As part of that effort, Starbucks is testing a version of its popular egg white and roasted red pepper bites made with avocado oil.
• It has removed sugar from its matcha powder and eliminated the upcharge for nondairy milk, addressing long-standing complaints from plant-based and sugar-sensitive customers.
• Starbucks also tested unsweetened protein powder as a customizable add-in to its cold foam lineup, offering more nutrition-oriented options.

Why is this happening? Starbucks is repositioning its brand amid a sales slump and intensifying competition from Dutch Bros and Luckin Coffee, which are connecting with younger, value-conscious, and health-minded consumers. To stay competitive, Starbucks needs to find ways to adjust its product offerings and pricing strategies.

Our take: Starbucks is making some necessary changes—but there’s still plenty of work to do. Consumers want brands that meet them where they are, and that means prioritizing ingredient transparency and wellness without sacrificing flavor or convenience. For Starbucks, that could mean cutting back on sugar in key drinks, expanding nutritional add-ins, and offering more customizable options.

If executed well, this strategy could help Starbucks reassert its leadership in the premium coffee space.

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