Starbucks continues its push into cold beverages

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Starbucks Introduces Orange Drink

Starbucks has two new cold drinks for the summer season.

For years, Dunkin' Donuts (NASDAQ: DNKN) was the go-to chain for iced coffee, driven in part by the bizarre fact that people in its home market of New England drink the stuff even during the winter.

Starbucks (NASDAQ: SBUX) had its Frappuccinos, iced lattes, and other drinks served cold, but it was not until it introduced Cold Brew iced coffee in March that the company truly embraced iced coffee. The chain may dispute that, but before Cold Brew -- coffee extracted over long periods of time in cold water -- became a hit, it was not uncommon to order iced coffee at one of its locations and be offered hot coffee poured over ice.

That has changed however and Starbucks has fully embraced the demand for iced beverages, adding shaved-ice treats it calls Granitas to its afternoon/evening menu and now introducing two new cold beverages for summer.

What are the new drinks?

Starbucks has been a leader in offering non-dairy milk options. It has long had soy milk as a choice and it added coconut milk to its menu in early 2015. Now the chain will offer an Iced Coconut Milk Mocha Macchiato,which it described in a press release as its first iced espresso beverage that features coconut milk.

"Summer is a great time to highlight coconut milk. It's lighter in body than regular milk, and can be a little more refreshing," said Christal Canzler, Starbucks senior product developer, in the press release.

The drink consists of espresso shots poured over chilled coconut milk and combined with a hint of white chocolate mocha sauce. It's then finished with caramel sauce and a swirl of mocha sauce to "create five layers of espresso sweetness," according to the company.

In addition, the chain will release an iced non-coffee drink for the summer, the Teavana Shaken Berry Sangria Herbal Tea. This drink starts with Teavana Iced Passion Tango Tea – a blend of hibiscus, lemongrass and apple flavors – and sangria syrup that contains a blend of peach, elderberry, blood orange, and raspberry flavors. "The tea is then hand-shaken with black berries, orange slices, apple juice, and ice," according to a press release.

Both drinks hit the official menu in the United States and Canada on July 12, but are available to members who pay with the company's app or its loyalty card a day early. That's a smart strategy that further enhances the club-like, exclusivity feeling for members, likely driving some customers to sign up.

See photos of Starbucks' secret 'Orange Drink':

Starbucks secret Orange Drink
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Starbucks secret Orange Drink
The new #OrangeDrink from @Starbucks. I can get behind this one. 🍊🍊 Orange mango with vanilla bean coconut milk. #summerishere ☀️😎 you glad to see me... another pretty looking drink that's actually very good... and it includes two of the fruits that i actually regularly mess with... mangoes for its tropical taste and oranges for its citrus taste... now Starby's will add 2 scoops of vanilla bean powder and coconut milk... try it out and you be the judge on how well it ranks among these colorful drinks... #starbucks #orangedrink #dineOC #littleRoRobigappetite #tryitordiet #eatingisahabit_ 🍊
#Repost @therealstarbuckssecretmenu ・・・ Are you on team ‪#Pinkdrink‬, ‪#Orangedrink‬ or ‪#Purpledrink‬? #starbucks
#orangedrink #starbucks
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Drink hype. #starbucks #purpledrink #orangedrink @taco_206
Wth pink drink, purple drink now orange drink!!! Seriously!!! I cant keep up 😂😂😂😂
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Hypebeasting at Starbucks this morning 😎📷🍓🍊🍇 #starbucks #pinkdrink #purpledrink #orangedrink #hypebeast #purpledrank #coffee #breakfast #drinks #foodie #drinkporn #foodpic #yummy #secretmenu #foodlover #foodporn #LAfoodie #healthy #yelpLA #hungryinLA #beverage #cameraeatsfirst #dotd #recipe #travel #instafood #instadrink #summertime #saturday #foodiemobbb
#Repost @therealstarbuckssecretmenu ・・・ Are you on team ‪#Pinkdrink‬, ‪#Orangedrink‬ or ‪#Purpledrink‬? #starbucks

What could this do for business?

Iced coffee has been working so well that Dunkin' has followed Starbucks into offering cold brew. That might sap some sales from the higher-end chain and one way to fight that is by offering something new.

The Iced Coconut Milk Mocha Macchiato courts the crowd that has embraced the alternative milk while the Teavana Shaken Berry Sangria Herbal Tea continues the chain's push for consumers who don't drink coffee at all, or maybe want something else later in the day.

Neither of these beverages are likely to be the unqualified hit that Cold Brew quickly became. These drinks don't open a new category for the company; they push the edges of where it already operates. In addition, both of these drinks -- but specifically the iced tea -- might help with the coffee chain's goal of increasing sales during its less-busy afternoons and evenings.

Starbucks is embracing cold drinks, which should continue to expand its audience. These two are not game changers, but they are interesting and should drive some store traffic.

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Daniel Kline has no position in any stocks mentioned. He does not care for coconut milk in coffee. The Motley Fool owns shares of and recommends Starbucks. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

RELATED: Check out Starbucks cups through the years:

Starbucks cups, different looks through the years
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Starbucks cups, different looks through the years
CHENGDU, SICHUAN PROVINCE, CHINA - 2015/09/13: Coffee cup on table in a Starbucks cafe. Starbucks is streamlining the ordering process so customers are able to get that cup of coffee faster than usual. (Photo by Zhang Peng/LightRocket via Getty Images)
A cappuccino coffee sits in a Starbucks Corp. Reserve cup, used for specialist coffee, on the counter at a Starbucks coffee shop in London, U.K., on Friday, Oct. 16, 2015. Coffee futures fell the most in seven months after Colombia announced measures that will increase exports, spurred by the plight of farmers in the country who are dealing with drought conditions linked to the El Nino weather pattern. Photographer: Chris Ratcliffe/Bloomberg via Getty Images
BEIJING, CHINA - 2014/12/24: A paper coffee cup and Starbucks logo. Starbucks will continue its expansion in China in 2015 and double its China store count to 3,000 by 2019. In its first-quarter fiscal report, the coffee giant shows optimistic expectation for its robust expansion plans in 2015. (Photo by Zhang Peng/LightRocket via Getty Images)
A Starbucks employee writes a message on a cup of freshly brewed coffee at a local store in Washington, DC on December 26, 2012. Starbucks stirred the political pot Wednesday by urging its baristas to write 'come together' on its cups as a way to pressure US lawmakers to compromise on a deal to avert a year-end fiscal crisis. Starbucks chief executive Howard Schultz said the American coffee giant was recommending its first-ever message on the side of tall, grande and venti (small, medium and large) drinks sold at its Washington stores as a way to help break the capital's gridlock on the so-called 'fiscal cliff.' Lawmakers and the White House have less than a week to work out a deal aimed at preventing tax hikes from hitting all Americans and a series of deep, mandated spending cuts from kicking in beginning January 1. AFP PHOTO/Eva HAMBACH (Photo credit should read EVA HAMBACH/AFP/Getty Images)
FILE - In this March 18, 2015 file photo, Larenda Myres holds an iced coffee drink with a "Race Together" sticker on it at a Starbucks store in Seattle. Starbucks baristas will no longer write "Race Together" on customers' cups starting Sunday, ending as planned a visible component of the company's diversity and racial inequality campaign that had sparked widespread criticism in the week since it took effect. (AP Photo/Ted S. Warren, File)
Justin McCartney of Hampton, Va., holds up a cup with the words "Come Together" written on it outside a Starbucks cafe in Washington, Thursday, Dec. 27, 2012. Starbucks is using its coffee cups to jump into the political fray in Washington. The world's biggest coffee chain is asking employees at cafes in the Washington area to scribble the words "Come Together" on cups for drink orders on Thursday and Friday. CEO Howard Schultz says the words are intended as a message to lawmakers about the damage being caused by the divisive negotiations over the "fiscal cliff." (AP Photo/ Evan Vucci)
A Starbucks coffee cup is seen in this photo taken August 12, 2009. AFP Photo/Paul J. Richards (Photo credit should read PAUL J. RICHARDS/AFP/Getty Images)
A customer holds their cup of coffee at the Starbucks in Chagrin Falls, Ohio on Wednesday, Aug. 2, 2006. Starbucks Corp. releases third-quarter earnings after the closing bell. (AP Photo/Amy Sancetta)
A cup of Starbucks tea is seen in Washington, Thursday, Nov. 16, 2006. Starbucks Corp., the largest specialty coffee retailer, will report its earnings for the fiscal fourth quarter on Thursday, Nov. 16, 2006. (AP Photo/Ron Edmonds)
MIAMI - JANUARY 18: In this photo illustration, the new Starbucks 31-ounce Trenta size ice coffee is seen on the right next to a tall cup of Starbucks coffee on January 18, 2011 in Miami, Florida. Starbucks rolled out the newest member of its lineup of drinks which is available only for Tazo shaken iced teas, iced tea lemonades and iced coffees. (Photo illustration by Joe Raedle/Getty Images)
TOKYO, JAPAN - SEPTEMEBR 26: Starbucks Coffe Company's news product 'Starbucks Discoveries'(Espressso (L), Latte (R)) are seen during a preview party on September 26, 2005 in Tokyo, Japan. 'Starbucks Discoveries' is the company's first chilled cup coffee product which will be available at convenience stores on September 27 in Japan with the same coffee beans used at Starbucks stores. (Photo by Junko Kimura/Getty Images)

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