Looking to cover more ground in an ailing economy, Starbucks has tipped off plans on a line of instant coffee. Very soon, Starbucks will be selling instant coffee packs vis-a-vis its traditional lattes and frappes.

They will be selling them in threes and dozens, retailing for $2.95 and $9.95 respectively. Starbucks public affairs honcho Vivek Varma reassured consumers by saying that the product would not deviate much from the taste coffee drinkers have known for years. But the instant coffee, which will be called Via, still represents a divergence for Starbucks, by all accounts the largest chain of coffeehouses in the world.

The newest Starbucks creation will be available in both medium and bold blend and may be used with ice water for those who prefer a cold beverage. Via will eventually be expanded to offer Starbucks’ signature 30 varieties of beans.

This move runs counter to comments made by Starbucks Chief Executive Officer Howard Schultz, who in a July conference reiterated the brand’s premium cachet.

For the most part, Starbucks has maintained a premium price on products, yet a burgeoning recession has meted inauspicious pressure to the company. Starbucks has descended 45% in the preceding months. Adding to Starbucks’ woes is the expansion of McDonald’s and Dunkin’ Donuts’ coffee businesses.

Speaking in behalf of the company, Deb Trevino admits that the turnaround is the company’s way of sharing in the vast instant coffee market, which is worth $17 billion. In a memo to Starbucks shops, Schultz vindicates the move as the “right thing to do for our customers.”

Sanka and Folgers and Nescafe are currently recognized as being the leading instant coffee brands.
Judging from its menu changes, Starbucks has somehow taken the path of value offers and discounts it has long sought to avoid. Earlier this month, Starbucks launched its breakfast meals, which feature a combination of tall latte, tall coffee, toffee cake, oatmeal, and four breakfast sandwiches. One such breakfast meal costs around $3.95, a price that is relatively cheap for Starbucks standards. These breakfasts are estimated to take off as much as 20% of the product’s regular tags.

In addition, Starbucks partnered last year with Costco Wholesale for a set of gift cards. For just $80 a card, consumers get to make $100 worth of purchases wherever it is honored.
Schultz himself is taking a different tone. From reminding everyone about its premium price, he has taken to convincing consumers that $3 was the average price of their coffee in 2008.

Via has been alluded to by Schultz for weeks as a company crux involving “innovation, competition, and value.” Advertising Age, however, unveiled the plans ahead of Starbucks’ official announcement on February 17.

Through it all, Starbucks is not yet bent on making further drastic changes. Except for a recent move to widen its franchise of Seattle’s Best, Starbucks is not keen on making other structural upheavals soon.

Each Starbucks store boasts $1 million in revenue. In 2008, Starbucks’ brand was reportedly worth over $3.8 billion.

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