Kraft vs. Starbucks: what is the big difference?

Kraft and Starbucks are two of the largest beverage and food companies in the world. Recently, a friend asked me what the differences between the two companies were, and I managed to go as far as stating that Starbucks has good coffee and an endless secret menu, while Kraft is a brand I see on several food items when I go grocery shopping, and embarrassingly, that was almost all I could say. I found my ignorance unacceptable, so I did some research on both and compared how they differed. I’ll be sharing these in this post, so read on to find out some interesting things you should also know.

 What are the differences between Kraft and Starbucks?

Features	Kraft	Starbucks
Ambience	Kraft does not offer a coffee shop experience, so the is no room to socialize.	Has a welcoming ambiance, with warm lighting, interesting wall art, and arrangement that encourages interaction.
Location	The coffee brands are available in 40+ countries	in over Is in 80 +countries and over 33,800 stores
Menu	Kraft has a wide variety of cheeses, beverages, dairy foods, snack foods, convenience foods, and confectionery.	Has a long list of drinks and encourages crafting beverages to personal tastes. The food options are limited.
Price range	Most products are fairly priced.	Most products are expensive
Beverage sizes	This depends on how you want to make it at home.	In-store drink sizes range from 8 ounces to 30 ounces
Environmental consciousness	The company works on a policy that aims at reducing greenhouse gas emissions, solid waste sent to landfills, nd energy and water consumption by all its partners.	Uses recyclable items and dishwashers to manage water usage.

Kraft vs. Starbucks: How do they compare?

Ambience

Kraft brands are distributed and sold to retailers, so the experience varies depending on the store where you get your goods.

Starbucks, on the other hand, prioritizes the feeling in their store, from writing your name on your cup to having free wi-fi and a well-maintained, attractive, and inviting public area.

 Starbucks wins for investing in the customer experience at their stores. 

Location

With a presence in over 40 countries spread over all the continents, Kraft is a well-known brand and sells products to hundreds of thousands, if not more, each day.

However, Starbucks is in more than 80 countries and over 33,000 locations worldwide, and because it is a product as well as a service business, it makes direct contact with its customers in all its locations.

Starbucks, therefore, wins for locations, as they are in more countries and serve their customers directly at their locations. 

Menu

Starbucks’ menu can be overwhelming. With the option to customize your drink, the number of beverage options is limitless. They also offer teas, non-caffeinated, hot, and cold drinks to suit every season and taste. The number of food options is, however, limited to a few bakery, breakfast, lunch, and snack options.

Since Kraft does not have a coffee shop or restaurant, they do not have a menu but develop, license, or distribute various food items, including cheese, beverages, dairy foods, snack foods, convenience foods, and confectionery. The number of food options that one can come up with using these is limitless.

When it comes to the menu, Starbucks wins as it has a menu, while Kraft’s business model does not require one. 

Price Range

One of the things that people complain about is the high cost of items at Starbucks. In Starbucks’ defense, the ambiance, location, staffing costs, and other expenses that go into making the Starbucks experience have a cost implication that the company needs to meet, and that goes to the price you pay for the items.

 Kraft’s business model allows them to operate with relatively lower operational expenses, which translates to lower prices.

Kraft wins on price range. Most Kraft food items are reasonably priced. 

Beverage Sizes

At Starbucks, you can get your drink in a small 8-ounce cup, a 12-ounce tall cup, a 16-ounce grande, a 24-ounce venti, or a 30-ounce Trenta cup. Since you can also have Starbucks at home, the beverage size limitation only applies to in-store drinks. 

Kraft drinks at home do not have a limit on beverage size. 

When it comes to beverage size, it is a draw. You can make whatever drink size you want at home using either Starbucks or Kraft products. 

Environmental Consciousness

Starbucks has introduced recyclable items in a bid to minimize waste that ends up in landfill. For in-store use, the company has introduced dishwashing machines that are known to use less water and products for cleaning up. 

Kraft has a robust environmental policy that includes its partners and specific actionable steps to tackle greenhouse gas emissions, the level of solid waste sent to landfill, energy, and water consumption by the company and its partners. 

It is a draw when it comes to environmental consciousness. Both companies are constantly working to reduce the negative impact on the environment resulting from their business activities.

Kraft vs. Starbucks: A Comparison Overview

Kraft Overview

Did you know that Kraft started as a wholesale cheese delivery business over a century ago? The company, which was established in Chicago in 1903 by James L. Kraft, has undergone numerous changes to take its current shape, with its food division being one of the largest beverage and food companies in the world. The most recent change has been that of Kraft’s parent company and H.J. Heinz Holding Corporation’s merger in 2015, which gave birth to Kraft Foods, a brand, and division within the newly formed Kraft Heinz conglomerate. This company has locations in over 40 countries.

Kraft Foods’ core business is in cheese, beverages, dairy foods, snack foods, convenience foods, and confectionery. The list of Kraft Foods brands includes products that the company develops, owns, licenses, or distributes. The company’s top brands include Kraft LU, Cadbury, Milka, Nabisco, Oreo, Jacobs, Oscar Mayer, Philadelphia, Tang, and Trident. Coffee brands under Kraft Foods include Maxwell House, Gevalia, and McCafe. 

Starbucks Overview 

As the story goes, Starbucks was founded in 1971 in Seattle and, as the story goes, its name and logo were inspired by its port location. The company specializes in selling coffee in stores but also sells tea, accompanied by baked items, foodstuffs, and collectibles like mugs. To give its customers a Starbucks experience at home, the company also sells coffee beans, ground coffee, coffee pods, and Starbucks syrups. Some of these it sells directly, while others, such as pods, are packaged and distributed by different companies under license. 

By the time Starbucks was established, Kraft had been in existence for close to sixty years as a company dealing in dairy products. Starbucks’ growth has been rapid in just fifty years and has managed to set up base in over 80 countries, with more than 33,800 locations in total. Howard Schulz is the company’s CEO.

Starbucks is popular for its innumerable drink options and variety that aims to cater to all tastes, creating a warm and inviting ambiance, seasonal offerings, rewards system, and a coffee experience like no other. Many people love it since it accommodates individuals on different diets. 

Final Verdict: So, which is better? Kraft vs. Starbucks?

Both companies are equally good. They serve our food needs in different but equally important ways. For Starbucks, we get to enjoy the Starbucks feeling at their stores, together with good coffee and select food items. Starbucks also sells coffee beans at their store and through leading retail stores, including Amazon. Kraft’s business model, on the other hand, leans more toward product delivery than direct service. What the company does well is to make it possible for its customers to access a wide variety of world-leading dairy products, branded coffees, snacks, and confectionery by both US and international manufacturers at affordable prices. 

FAQ SECTION 

Did Starbucks settle its dispute with Kraft?

Yes. Starbucks settled its dispute by paying Kraft $2.75 billion, as determined by an arbitrator in 2013 for the premature termination of a distribution agreement. 

Is Kraft’s coffee stronger than Starbucks coffee?

No, Starbucks coffee is stronger than any of the Kraft coffee brands. 

Is Starbucks more popular than Kraft?

Yes. Starbucks is more popular than Kraft. Other than the at-home coffee, people go to Starbucks to socialize, making it more popular than Kraft.