Starbucks announced it is opening a new store serving beer and wine along with coffee and tea by revamping one of its own cafes. Starbucks logo will not appear on the facade of the store, nor will it be on any product that the Seattle-area store sells. The remodeled store will be called “15th Avenue Coffee and Tea” and is expected to be unveiled on July 24th.

The world’s largest coffeehouse company takes the new store’s name from its street address, aiming to build what one executive called "a community personality." Apart from beer and wine, 15th Avenue Coffee and Tea will also feature night-time hours and live entertainment such as music and poetry readings. Andrew Hetzel, the founder of a coffee consulting group, thinks Starbucks must be “testing a specialty sub-brand to see if they can capture some other segment of the market that would otherwise be disillusioned by a large corporate chain".

This move has stirred up a lot of speculation in the media. Why would a company who has spent so much effort building their brand go under cover? Are they trying to do to the local pub what they did to the neighborhood coffee shop?

Starbucks is known for transforming a commodity into a “premium” product through its effective branding. They accustomed millions world wide to pay high prices for lattes and cappuccinos and spurred the growth of the specialty coffee industry. Through the use of product placement, the public has grown accustomed to seeing characters in TV shows or movies taking a Starbucks’s latte to work, or news anchors with a Starbucks cup on their desk.

Yet, the same brand-building activity that has associated Starbucks with luxury is now causing difficulties during a time of economic recession. For consumers, luxury translates into something they do not need. Even though 15th Avenue Coffee and Tea may seem more down to earth, the public is sure to know the brand behind the name.

The once fast-growing coffee giant has closed 900 stores in the United States and laid off more than 8,000 workers since July 2008. Recently Starbucks is also facing competition from other lower-priced coffee brands, most notably McDonald’s McCafé. However, they plan to open two more Seattle-area stores without the Starbucks name in locations that aren't currently Starbucks stores. If the pilot stores do well, Starbucks will expand the no-brand store to other markets.

You can’t help but wonder whether Starbucks “un-branding” could lead to other large companies to try to localize using alternative brand names. One thing’s for sure, the business world is keeping a close eye on the 15th Avenue coffee shop and what it means for the future of Starbucks.