In 2023, Starbucks released a modern drink, Oleato, created by then-CEO Howard Schultz himself. The coffee and olive oil blend was met with a variety of responses, from “it’s not that bad” to “it makes you poop your pants.” While it’s not the craziest coffee combination to go viral in a post-COVID world, Oleato’s widespread rollout to all U.S.-run and licensed Starbucks stores — as well as locations in Canada, France, Japan, England, and China — left many wondering how the divisive drink could have been such a hit.
It turns out that this may have been due to the fact that Schultz wanted to experiment a bit. Partannathe brand of olive oil used in all Oleato drinks, is partly owned by a former Starbucks CEO.
As reported Traffic lightsSchultz bought a 19% stake in the company named after the Sicilian city he calls home. Between the fourth quarter of 2022 and the third quarter of 2023, Starbucks paid Partanna $26.5 million for its olive oil. And it’s not just about buying Schultz-branded olive oil; Starbucks is marketing it by name. On their page dedicated to Oleatothe brand mentions Partanna no less than four times. Schultz himself was even quoted as saying, “people will add a spoonful of Partanna extra virgin olive oil to their drink. I’m sure of that.”
Schultz and Starbucks launched Oleato after a “lack of consumer research.” Instead, Schultz “trusted his gut,” believing Oleato would “change the coffee industry.”
According to Semaphore, Schultz offered Starbucks the opportunity to invest in Partanna when he was CEO, but left the decision to modern CEO Laxman Narasimhan, who was in the middle of a “CEO internship” and eventually resigned.
In a statement regarding the relationship between Schultz and Partanna, Starbucks says, “Starbucks — through its Board of Directors and numerous audit committee meetings — had a forceful governance process in establishing the business relationship with Partanna/United Olive Oil… This included a thorough conflict of interest review, including ensuring that Howard had no role in business decisions related to the Partanna/United Olive Oil relationship.”
I’m sure this is all just a gigantic coincidence, the Starbucks drink that no one asked for, that bypassed all the market testing, just so happens to line the pockets of their CEO, who sometimes is, sometimes isn’t. So the next time you’re enjoying an Oleato, no doubt hovering over the toilet for good measure, you can thank Howard Schultz and his olive oil.
