Starbucks Via coffee is instant $100m success

Starbucks today said its Via instant coffee, which it hopes to build into a billion-dollar business, had hit $100 million in sales in 10 months.

The coffee chain launched Via to a sceptical investment community in September last year, but the pace of sales have put it among only 3% of American products that hit $50 million in their first year.

Frappuccino, widely viewed as Starbucks' most successful consumer launch, took three years - adjusted for inflation - to reach $100 million.

The bulk of sales so far have come from the US, where it is most widely available but where instant coffee is not as popular as it is in parts of Europe and Asia. Via is also on sale in Britain, Canada and Japan.

Starbucks said it expected Via to have a "slightly positive contribution" to earnings in the financial year to October 4, even as it puts significant marketing and advertising dollars behind the coffee brand.

"We are continuing to drive steady increases in Via distribution," said Starbucks chief executive Howard Schultz.

"In the next few weeks, we will announce new product innovation as well as an additional international market entry for Starbucks Via," Schultz said.

Schultz recently said he plans to expand sales into China within the next year.