Starbucks...Good To the Last Drop?

Just how hard has this economic slump hit Starbucks? It's closed more than 600 stores in the U.S. and cut at least 2,000 from its payroll. It put its corporate jet up for sale. It launched discounts on breakfast pairings.

And now this: It's going instant.

The Seattle-based coffee giant will begin testing a new soluble coffee product called Via next month. For those unfamiliar with the term, Folgers, Sanka, and Brim are also examples of soluble coffee.

Just add hot water and stir! Tough times, indeed.

According to AdAge.com, the product is not just a reaction to the current economic recession, which has forced many Americans to reconsider their triple shot mocha lattes every morning. Several unnamed executives tell the publication that the instant product has been years in the making and was designed to mimic the taste of store-bought Starbucks.

"It's a breakthrough in soluble coffee," said a person close to the project.

The company is expected to make a formal announcement next week and disclose more details at its annual shareholder meeting in March. So far, no details on pricing have emerged, but it's safe to assume the product will sell for less than its coffee beans currently cost in its cafes and in supermarkets. It's also not clear if customers will be able to order instant coffee at the cafe or if it will merely be sold in packages for at-home stirring.

by Megan Barnett