Starbucks climbs to an all-time high on the release of its Tie-Dye Frappuccino
- Starbucks released a new Tie-Dye Frappuccino for summer on Wednesday.
- Shares climbed more than 1% to a record high on the release of the colorful beverage.
- Novelty drinks like the Tie-Dye Frappuccino help Starbucks get consumers to come to stores, something the company has struggled with in the past.
- Watch Starbucks trade live on Markets Insider.
Tie-Dye is giving Starbucks a boost.
Shares of the coffee chain climbed more than 1% to a record high Wednesday after the company released a new Tie-Dye Frappuccino drink for the summer.
The new Instagram-friendly drink has been much-anticipated by consumers, especially after the popularity of the Unicorn Frappuccino last year. The colorful drink -made with different powders for the tie-dye effect- will only be available for five days or as long as supplies last.
It's similar to other novelty beverages Starbucks has launched in the past, such as the Unicorn Frappuccino and the Witch's Brew Frappuccino. The drinks are crafted for their potential to go viral on social media with aesthetically pleasing colors and limited availability on menus.
The seasonal drinks are not popular with Starbucks baristas, who complain that the drinks are complicated and take a long time to make. Still, such drinks can be a boost to traffic in stores, which Starbucks has struggled with in the past. In its last quarterly earnings release, the company reported increased sales but flat transactions. Analysts have called for the chain to address the problem Starbucks has had with drawing customers into stores.
Starbucks is also launching a Donut Frappuccino with donut crumbles, but it's only available to consumers in the UK.
Shares of Starbucks are up 37% year-to-date.
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