The Oatmeal Crusades

On January 12, Caribou Coffee rolled out its line of "Handcrafted Oatmeal." From its birthplace in Minneapolis, MN, Caribou has done a pretty good job expanding throughout the meager two decades of its existence. Though Caribou may not yet hold the status of household name, its most recent launch reveals its intentions to lay hold of it. Just over one year ago, that other company--what's its name? Oh yeah, Starbucks--rolled out a line called "Perfect Oatmeal." While Starbucks has offered various toppings (fruit, nuts, and brown sugar) for its "Perfect Oatmeal," Caribou's "Handcrafted Oatmeal" is available in five flavors (classic, maple brown sugar crunch, apple cinnamon, cranberry orange, and very berry). Moreover, Caribou's launch, like that of Starbucks, includes "pairings" in which customers can receive discounts for purchasing the oatmeal with certain beverages. So what does all this mean to the specialty coffee market? By engaging in a game of Oatmeal Wars with Starbucks, Caribou has said, "Guess hat? I'm not the little guy anymore." More importantly, though, they have said to Starbucks, "Guess what? You're not the only big guy anymore."

By going head to head with Starbucks, Caribou has opened a level of the coffee market that has been somewhat mysterious as of late. Many people have been at a loss as to how to classify Starbucks. It doesn't quite belong with quick fix names such as Tim Hortons and Dunkin' Donuts, but it certainly doesn't reach the heights of names such as Intelligentsia Coffee or Stumptown Coffee Roasters. Starbucks has some quality roasted coffees and yet its retail outlets are run like fast-food chains. Until now, we've had to sort of dump Starbucks into one category or another. With Caribou Coffee creeping up and gaining market share, however, there seems to be a whole other level of the coffee market emerging--a middle ground, if you will. There now seems to be a continuum of "I just need my caffeine fix, man, so I can make it through the work day!" to "I just want to sit down and enjoy the culinary sensation of an excellently prepared cup of coffee!" Starbucks and Caribou together, along with other emerging middle-grounders such as Gloria Jean, are creating a market that says, "I need something quick to perk me up but with enough quality to make me feel sophisticated."

With middle-grounders like Caribou and Starbucks using such things as gimmicky Oatmeal to bring in customers, they are making their target market clear--the everyday people who just want some modest luxury (even if it's fake). Those of us obsessed with quality in our coffee may be concerned that the coffee, behind such promotions, seems to fade into the background. People care more about their "Frappuccinos" and "Coolers" than they do about the coffee. Our reactions, if you'll pardon the pun, may be rather 'bitter' toward these middle-grounders. When we make such accusations, however, we must be careful. We must remember the market that companies like Starbucks and Caribou are now occupying. It's unfair to criticize Starbucks customers for loving "Frappuccinos" and Starbucks for selling them. That is the business that Starbucks is in. The whole bean coffee of these middle-grounders, however, is still there for the time being. We must remember not to read "Cooler" or "Handcrafted Oatmeal" into the french pressed cup of Colombia Timana that we are leisurely drinking. The coffee exists in its own right and we'd do well to treat it with objectivity.