Starbucks to eliminate non-dairy milk surcharge in U.S. starting November 7

USA – Starbucks has announced that it will drop its additional charge for non-dairy milk starting November 7, in the U.S., a move CEO Brian Niccol describes as a return to “core values.” 

The change makes soy, oat, almond, and coconut milk free for customization, meeting high customer demand while addressing Starbucks’ commitment to accessibility and sustainability.  

“Core to the Starbucks Experience is the ability to customize your beverage to make it yours. By removing the extra charge for non-dairy milks, we’re embracing all the ways our customers enjoy their Starbucks,” Niccol noted.

This policy shift follows a string of international rollouts where Starbucks removed the surcharge, including in the UK, China, and Belgium, while the U.S. remained an outlier. 

The company acknowledged that swapping dairy milk for plant-based options is the second most requested customization after adding a shot of espresso, with about half of U.S. customers currently paying extra for this modification. 

Upon implementation, the company estimates over 10% savings for these customers in company-operated stores.

For Starbucks, this decision aligns with several initiatives aimed at refreshing the brand’s connection to customers and reinforcing its reputation as an inclusive coffeehouse. 

The change also aligns with shifting consumer preferences; lactose intolerance and dairy allergies impact a significant portion of Americans, with estimates suggesting that 80-90% of African Americans, Native Americans, and Asian Americans are lactose intolerant. 

Niccol, who succeeded Laxman Narasimhan as CEO in August, stressed a customer-centered approach as part of his “Back to Starbucks” strategy, a shift meant to simplify Starbucks’ menu and appeal to current consumer needs. 

 “I made a commitment that we’d get back to Starbucks, focusing on what has always set Starbucks apart – a welcoming coffeehouse where people gather and we serve the finest coffee handcrafted by our skilled baristas,” he said.

In addition to addressing accessibility, this change supports Starbucks’ environmental commitments, which include halving emissions by 2030 and reaching net-zero by 2050. 

Dairy milk represents Starbucks’ largest carbon footprint contributor, making a push for plant-based milk align with the company’s sustainability goals.

Niccol emphasized the need to make customizations more accessible without “penalizing” environmentally conscious choices, stating that removing the non-dairy surcharge helps ensure “a visit to Starbucks is worth it every time.”

The policy shift also comes amid financial strains, with Starbucks reporting a 6% decline in global sales from July to September year-over-year, and a 25% drop in earnings per share. 

This cost-cutting measure is expected to appeal to budget-conscious consumers and environmental advocates alike, particularly as plant-based milks continue to gain popularity in the U.S. 

Starbucks was among the first major chains to offer non-dairy options, starting with soy milk in 1997.

Animal rights and environmental activists, including groups like PETA, have campaigned for years against Starbucks’ surcharge, emphasizing the ethical and environmental benefits of plant-based milk. 

Jacqueline Sadashige, PETA’s manager of corporate responsibility, commented, “Starbucks claims that expansion of its vegan offerings is part of its commitment to give more than it takes from the planet.”

“But charging up to 90 cents extra for them doesn’t ‘empower’ customers – it penalises them.”

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