Starbucks has sold merchandise since 1994, when its City Mugs debuted — and it is now ramping up that strategy as a core plan to become more culturally relevant, connect with new audiences and engage loyal fans.

The chain today is nearly as well-known for viral merchandise collections that sell out quickly as for its coffee beverages, according to the company. That shift did not happen by accident: over the past two years, Starbucks has deliberately widened its collaboration pipeline while building out owned product lines.

Its partners span categories. Franchises include Peanuts and Hello Kitty. Fashion collaborators include Dandy and Farm Rio. In-house, the company created lines such as the Bearista glass cold cup.

What is driving the merchandise push?

The strategy serves three stated goals: cultural relevance, reaching new audiences, and deepening loyalty among existing fans. Merchandise functions as a brand channel in its own right, sitting alongside beverages rather than behind them.

Global chief brand officer Tressie Lieberman framed the ambition in shelf-level terms. "We want when people walk into a Starbucks to feel really excited about what's on the shelf," Lieberman said.

The remark signals how the company measures the program: not only in units sold, but in the emotional response the retail environment triggers at the point of purchase.

How did the strategy evolve?

The City Mugs, launched in 1994, established merchandise as a durable part of the Starbucks offer. What has changed recently is tempo and ambition — a deliberate ramp-up over the past two years, pairing owned lines like the Bearista glass cold cup with a rotating roster of external collaborators.

The collaborators chosen matter to the positioning. Peanuts and Hello Kitty bring nostalgic, family-friendly franchise equity. Dandy and Farm Rio bring fashion credibility and collectibility. Together they let Starbucks court distinct audience segments — from casual gift buyers to style-driven collectors — under one retail shelf.

Why does this matter for marketers?

The sellout pattern of recent drops shows the model can generate scarcity-driven demand normally associated with streetwear or sneaker releases, not coffee chains. For a brand managing cultural relevance, merchandise converts stores into distribution points for brand affinity rather than pure beverage sales.

The open question is durability. Franchise and fashion collaborations can refresh attention quickly, but each drop raises the bar for the next. Starbucks' bet is that a steady cadence of owned lines and partnerships keeps the shelf — in Lieberman's words — genuinely exciting, and keeps fans coming back between beverage launches.