Starbucks announced that it would remove its Oleato beverage line from U.S. locations in early November, ending a controversial chapter in the coffee chain’s menu expansion history, TODAY.com reports. The olive oil-infused drinks, which debuted in early 2023, were originally conceived by former CEO Howard Schultz following his experience with Sicilian olive oil consumption traditions.
The beverage collection, marketed as “arabica coffee deliciously infused with Partanna cold pressed extra virgin olive oil,” featured the ingredient in various forms: steamed with oat milk for lattes, shaken into iced espresso drinks, and blended into vanilla sweet cream foam for cold brews. Before the launch, Schultz had enthusiastically promoted the concept as “alchemy” and a potential “game-changer” after he began drinking olive oil alongside his daily coffee and decided to combine the two.
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However, customer reception proved mixed, with numerous reports of digestive issues emerging on social media. One anonymous Starbucks employee shared on Reddit that “Half the team” sampling the drinks before launch experienced gastrointestinal effects, with several “Needing to use the restroom, if ya know what I mean.” Not all feedback was negative, though, as one Redditor defended the drinks, stating, “I tried all 3 and loved all of them. Had no problems whatsoever.”
Registered dietitian Frances Largeman-Roth explained the biological basis for these reactions to TODAY.com in 2023: “Castor oil has long been a cure for constipation. Oil of any kind can help stool move through the digestive tract, especially if you’ve been constipated for a while. Olive oil can certainly have this effect too, especially if you’re drinking a venti or grande.”
The decision to discontinue Oleato predates new CEO Brian Niccol’s appointment but aligns with his strategy to streamline the company’s offerings. The company has confirmed that this change comes amid broader transformations at Starbucks, including the elimination of extra charges for non-dairy milk alternatives at company-owned stores in the U.S. and Canada starting Nov. 7.
The latter policy shift follows years of advocacy from vegan and lactose-intolerant customers, PETA demonstrations, and even a personal letter from Sir Paul McCartney, per TODAY.com. Niccol indicated in a press release that this is just one of “many changes” planned for Starbucks, including a reduction in discounts and promotional offerings.
The timing coincides with challenging financial performance for the coffee giant. Starbucks’ preliminary fiscal fourth-quarter results indicate declining sales for the third consecutive quarter, attributed to weakened demand in both U.S. and Chinese markets, according to CNBC. Wall Street analysts view Niccol’s leadership as an opportunity to distance the company from Schultz’s influence and implement strategic changes.
Schultz’s inspiration for Oleato (“with oil” in Italian) came from observing Sicilians’ daily olive oil consumption during his travels. The line launched first in Italy, then appeared in Southern California stores in spring 2023 before expanding nationwide in January. Early reviews in U.S. press were largely negative, contributing to the decision to discontinue the product line, the outlet reports. While U.S. locations will cease offering Oleato beverages, the drinks will remain available in Starbucks cafes across China, Italy, and Japan.
