Starbucks and Target have teamed up for a special holiday drink for 2025 — a frozen Frappuccino-style drink (cream base), blended with mocha sauce, milk, and ice. The Frozen Peppermint Hot Chocolate comes at a time when the coffee giant is trying to boost sales leading up to Thanksgiving and Christmas with novelty and limited edition products that will cause a buzz.

The Frozen Peppermint Hot Chocolate is exclusive to Starbucks cafés inside Target stores, and launches today (November 18). It comes as both brands face pressure from inflation, slowing consumer spending, and operational challenges.

Prices vary depending on location, but the drink — which came out of a collaboration between Target’s food & beverage trends team and Starbucks’ product development team — sells for US$5.95.

Novelty for holiday season

Target frames the new drink as a “fun, creative” way to bring extra holiday cheer to their in-store Starbucks cafés.

The mint comes more from whipped cream rather than the drink itself. 

“We wanted to create something festive and fun just for Target guests,” says Alicia Binion from Starbucks beverage development team. “The Frozen Peppermint Hot Chocolate is a delicious beverage that brings together rich chocolate and cool peppermint flavors as well as red and green sprinkles for a pop of color and crunch. It’s a sweet way to pause during the holiday rush and enjoy a little seasonal cheer.”

“For so many people, a Target run starts with grabbing their favorite drink from Starbucks before browsing our aisles, so together we’re building on that magic with an exclusive, only-at-Target drink to add a little extra cheer to holiday shopping,” adds Lisa Roath, executive VP and chief merchandising officer of food, essentials, and beauty at Target. 

“Frozen Peppermint Hot Chocolate is everything you’d expect when you combine Target and Starbucks. It’s fun, it’s creative, and it’s delicious — an absolute can’t-miss as you get ready to celebrate the holidays.”

Targeting consumer appeal

The new launch has drawn attention from the US media, with some commenting that the Starbucks and Target drink collaboration stems from the two companies facing pressure as part of a broader trend in the country this year, which has seen retailers under pressure due to inflation and tariffs driving consumer sentiment to near-record lows. 

Low-income consumers in the US, in particular, have become more cost-sensitive as they cut back on non-essentials.

Starbucks is currently undergoing a turnaround plan led by CEO Brian Niccol, who is reducing its food and drink SKUs by approximately 30% to simplify operations. 

The idea is to “clear the noise,” focus on core, high-quality coffee, and make it easier for baristas to deliver consistent service. Niccol is also closing some Starbucks stores, laying off employees, and facing ongoing strikes from disgruntled workers.

The Frappuccino-based holiday drink is positioned as a specialty drink that both companies hope will attract attention this holiday season.

Earlier this month, Starbucks announced a joint venture with private equity firm Boyu Capital to operate its retail outlets in China in a US$4 billion deal.