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Tribune News Service
Tribune News Service
Business
Janet I. Tu

Starbucks adds to list of its grocery products that earn rewards

SEATTLE _ Starbucks is expanding the number of items in grocery stores eligible to earn credits in the coffee company's rewards program.

Starbucks is now including its K-Cup packs, individual ready-to-drink beverages, and multi-serve chilled coffees on the roster of products eligible for what the company refers to as stars. Other items at grocery stores that were already eligible include its packaged roast and ground coffee, Via instant coffee, and Via instant refreshers.

The rewards program is hugely important to the company, as members spend much more than non-members. It's also integral to Starbucks' digital efforts, with the company's mobile app strongly tied to its rewards program.

Under Starbucks' rewards program, members earn two stars for every $1 spent at Starbucks stores.

Customers earn varying amounts of stars for the items sold at grocery stores, ranging from two stars for a ready-to-drink beverage to 25 stars for a K-Cup pack of 40 or more.

The stars can be redeemed for anything on the menu in Starbucks stores.

Last year, Starbucks changed its rewards program from one based on frequency of visits to one based on dollars spent.

Since then, the program has grown to include 13.3 million active members in the U.S., up 11 percent year-over-year, Starbucks CEO Kevin Johnson said during the company's most recent earnings call.

That's about half of the growth rate of a little over a year ago.

Still, rewards members' spending and visits to stores both showed record growth in the most recent quarter, with the average amount spent per active member growing 8 percent, the company said.

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