Pumpkin Spice Lattes
As many would agree, the fall season is one of the most trendy times of year as people from all around purchase oversized sweatshirts, UGG boots, and none other than pumpkin flavored goodies such as coffee, muffins, pie, and pretty much anything else you could think of. One of the companies that has had the biggest influence in this pumpkin flavored trend is Starbucks. Starbucks launched its Pumpkin Spice Latte, or PSL, in 2003, and ever since more and more people have been purchasing this drink every year. This drink is said to be a fall essential by many, and a must try by most.
Since this drink has been produced in 2003 there have been over 200 million that have been sold, so this drink has a very high supply and demand. Also, because this drink is only sold throughout the fall season buyers wait all year for this drink and there are always new people who want to see what the craze is all about. Since this drink is so scarce, only coming around once a year, and for only about five dollars it’s almost hard to resist.
Speciality drinks and items always bring in a large revenue because some people wait for so long to buy this drink and get multiple throughout the fall season. Starbucks is not one to release sale revenue for specific drinks, but it is estimated by Forbes that, Starbucks will make in the region of $100 million in revenues from pumpkin spice lattes this fall (Forbes).
Because Starbucks had been so successful with their pumpkin flavored drink other companies had decided to produce more products in order to keep up with this ever growing demand. Other large companies such as McDonald’s also jump into this annual craze in order to keep up with what the people want, but when one thinks about this drink, Starbucks is the main company that comes to mind. Forbes also states that, “the instances of pumpkin as a flavor on restaurant menus is up 21% since 2012. While just over half of this growth is in baked goods, statistics show we like everything from dressings (20% increase) and dips (6% increase) with a pumpkin flavor” (Forbes). Most cafe-like companies make a good profit as the fall season rolls around, and because they are in a free market economy they make the strategic move of producing these products because they know that the consumers will purchase it.
In conclusion, it is obvious that the Pumpkin Spice Latte, along with many other seasonal drinks and items, are very popular and apparent once the fall season comes around each year. Whether the consumer is young, old, from America, UK, or almost anywhere in between, it is likely that they have tried or at the very least have heard of this type of drink. At a low price, and high demand companies make a very large profit during this time and bring in a relatively large revenue.
O'Connor, Clare. “The Pumpkin Spice Economy: How Starbucks Lattes Fueled A $500 Million Craze.” Forbes, Forbes Magazine, 10 Nov. 2015.
Higgins, Marissa. “How Much Does A Starbucks Pumpkin Spice Latte Cost? Fall In A Cup Can Be Yours For About $5.” Bustle, Bustle, 1 Sept. 2016.
Starbucks. “Pumpkin Spice Latte”. Starbucks Coffee Company, 09 Sept. 2017.