Caribou Coffee drops dairy-free upcharge after PETA talks
Published in Business News
All Caribou Coffee customers will no longer pay more for plant-based milk, and a prominent animal rights group is taking the credit.
Until Jan. 2, customers had to swallow an upcharge of about $1 for nondairy milk like oat, coconut and almond at the Minnesota-founded chain. People for the Ethical Treatment of Animals (PETA) said in a Jan. 6 news release that Caribou dropped the additional cost after meeting with the advocacy group.
Caribou’s move follows similar action from brands such as Starbucks, Dunkin’ and Scooter’s Coffee. For several years before dropping the surcharge entirely, Caribou had offered free alternative milk in drinks ordered on its app.
Plant-based milk typically costs more than the usual whole, skim and 2% varieties. But the decision to eat that difference instead of passing it on to customers reflects Caribou’s “commitment to meeting evolving guest preferences and making every visit feel personalized,” per a company spokeswoman.
“Guests have told us they want more flexibility without added cost, and we listened,” spokeswoman Lindsay Bosley said in an email.
Caribou’s nixing of fees for in-person, dairy-free shoppers comes as the chain tries to boost its in-store experience to fight a decline in traffic. Instead of relying on drive-thru-only locations to fuel expansion, the brand is staking its future on cozier cafes.
Plant-based milks have grown more popular in recent years for both health-conscious and ethical-minded consumers. At the same time, coffee chains are competing for customers’ dwindling discretionary dollars amid an era of high inflation. A $1 upcharge for milks adds further pricing pressure to a $7 cup of joe, as the cost of coffee beans has also skyrocketed in recent years.
Emily Guice, a corporate responsibility officer at PETA, said nondairy milk spares cows from “lives of intense misery,” adding mother cows endure constant cycles of pregnancy and lactation.
For years, Guice said, PETA has pushed the coffee industry to end the upcharges. This included protests at Starbucks and help from celebrities such as “Succession” actor James Cromwell, who glued his hand to a coffee shop counter. After Starbucks announced it was dropping its surcharges in 2024, many chains followed, Guice said.
In 2023, Caribou announced it was dropping the surcharges for online orders, with an executive saying in a news release that dairy-free options are increasingly important for customers and the environment. Following the chain’s decision to now extend the offer to in-person shoppers, Guice said PETA is sending Caribou vegan chocolates as a symbol of gratitude.
“It’s a win for cows and calves, compassionate consumers and our planet, which all benefit from making vegan options more accessible and affordable for everyone,” Guice said.
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