Key Takeaways
- Starbucks says it clearly discloses nutritional information and will “vigorously defend” itself against claims that its “sugar-free” protein drinks mislead customers.
- Three consumers allege that hot and iced protein lattes and matcha drinks contain 13 to 21 grams of sugar per serving—up to roughly the amount in a Kit Kat—despite using sugar-free syrups.
- The federal lawsuit lands as CEO Brian Niccol pushes his “Back to Starbucks” overhaul and the company reportedly explores a potential acquisition of Chipotle.
Starbucks is facing a federal lawsuit accusing the coffee giant of misleading customers by marketing certain protein drinks as "sugar-free" despite allegedly containing as much sugar as a Kit Kat bar. The complaint, filed on behalf of three consumers, claims some beverages contain 13 to 21 grams of sugar per serving.
According to NBC News, the lawsuit targets Starbucks' hot and iced protein lattes and protein matcha drinks, including vanilla and caramel varieties. The plaintiffs, who purchased the beverages in California, New York, and Washington, argue that the company's labeling creates a false impression about what customers are actually drinking.
The dispute centers on the difference between a beverage made with sugar-free flavoring and one that contains no sugar whatsoever. Starbucks maintains that it does not add sugar to the drinks and uses sugar-free syrups for flavoring.
However, the plaintiffs argue that customers ordering something advertised as "sugar-free" should not have to distinguish between the sweetener used and the drink's total sugar content.
"No reasonable person" would expect a product described as sugar-free to contain those amounts, the complaint alleges.
"This case is about false and misleading product names. It is not about missing nutritional information," the lawsuit states.
Starbucks has rejected the allegations, insisting customers can access detailed nutritional information before making purchases.
The company said it has "consistently and clearly provided information about its protein beverages, sugar-free options, customization choices, and nutritional content" through its menus, website, app, and promotional materials.
Starbucks added that it intends to "vigorously defend ourselves in this matter."
The lawsuit, filed by Hagens Berman, comes as Starbucks CEO Brian Niccol continues overseeing a major overhaul of the company's operations. Since leaving Chipotle to take over Starbucks in 2024, Niccol has focused on improving service, updating menus, renovating stores, and rebuilding customer traffic through his "Back to Starbucks" initiative.
His leadership has also attracted attention beyond the coffee business. Starbucks has explored a potential acquisition of Chipotle, the restaurant chain Niccol led for more than six years.
Starbucks has reportedly worked with advisers on a possible takeover of Chipotle, which carried a market valuation of approximately $41 billion at the time of the report. Such a transaction could become the largest restaurant acquisition in history, although neither company has announced an agreement.
The potential deal surfaced as Chipotle dealt with declining restaurant traffic and renewed scrutiny of its pricing strategy. Earlier this year, CEO Scott Boatwright disclosed that 60% of the chain's core customers earn more than $100,000 annually, prompting criticism over its focus on higher-income diners.
