I’m sure a lot of people love iced coffee. I enjoy a wonderful, iced drink during warm days. However, there does come a point in the weather that it seems that iced drinks are a bit silly. My personal opinion is when it gets cold, drink something warm. However, the iced coffee business has been soaring throughout the cold weather, and the business technique is quite remarkable.
Iced coffee has a long and interesting history. First reported at the Battle of Mazagran in Algeria in 1840, it was allegedly developed by the French military. Originally known as mazagran, it was a sweetened cold coffee beverage. Introduced to the Parisian cafes by the veterans, it quickly made its way across the pond to the United States in 1920. Iced coffee then became marketed towards the masses in the early 1960s. Iced coffee then was picked in California when a barista introduced a drink called “the Ice Blended” in 1987. In 1995, Starbucks introduced their frappuccino line and soon, iced coffee began getting some traction, but its popularity soared during the 2010s.
For Starbucks’ drink beverage sales in its fiscal 2024 third quarter, cold drinks accounted for 75% of their sales. The younger generations of drinkers are helping with the growth. According to a survey conducted in July 2024 by the National Coffee Association, 45% percent of coffee drinkers aged 18 to 24 drank a cold coffee within the past day.
Many business experts believe that since cold coffee is easily customizable, with different syrups, toppings and cold foam, this has allowed people to control their coffee to their preferences. With a colder drink, it offers a marketable benefit, which allows the customer to alter their drinks, feeling that they are getting value out of their money. Especially amongst the younger generations who value personalization and self-expression in their personal routines, they favor this form of drink since it is easily customizable.
Starbucks has become the prime example of turning coffee into loyalty. Starbucks made themselves into an experience and created their cup into a fashion statement like carrying a new handbag or wearing a new lipstick.
“Customers return for the convenience of mobile ordering, customization and the café atmosphere, which fosters loyalty. However, sustainability hinges on maintaining value perception.” Robin Salvador, CEO of Caffeine Brothers said to the Food Institute. The combination of being considered a luxury item, and a daily part of a person’s day can make a drink an inevitable part of one’s day. In conclusion, iced coffee has evolved from a simple treat to a global phenomenon which has reshaped the coffee industry. The success of chains like Starbucks has turned ice coffee into both a luxury item and an everyday necessity. This exemplifies the power of branding and customer loyalty in the modern coffee market. As the demand continues to grow, the future of iced coffee looks promising, driven by innovation, customization and the cultural significance it holds in daily life.