Article

The Nasdaq-100: How innovation is powering your cup of coffee

The Nasdaq-100 index: How  innovation is powering  your cup of coffee

Key takeaways

1

Technology has a broad reach across industries not usually associated with technological innovation, such as those in the Nasdaq-100 index, which Invesco’s Nasdaq UCITS ETFs track.

2

Greater integration between physical and virtual coffee-buying interactions allows for a new dimension of customer experience, enhanced by the greater personalisation and flexible payment options technology can offer.

3

The use of data analytics through technology can help companies create better efficiency in business operations, such as supply chain management and product development. 

From Bean to Byte: the technology behind your everyday brew

Technology is everywhere, even in your morning coffee. What was once a simple ritual is now a showcase of innovation, powered by companies in the Nasdaq-100 index. Whether it’s ordering ahead via an app, receiving tailored promotions, or enjoying a seamless payment experience, technology is enhancing how we interact with brands.

But innovation doesn’t stop at the counter. The following case studies showcase how the Nasdaq-100 index companies are redefining what it means to be innovative, not just in technology, but across every sector. From harnessing artificial intelligence to optimising supply chains, to deploying cloud computing and data science to forecast demand and accelerate product development, these companies are pushing boundaries. Even those outside the traditional technology sphere are embracing digital transformation to stay competitive, connect with consumers in new ways, and deliver smarter, faster, more personalised experiences.

Starbucks: Personalisation, loyalty and product innovations

A global leader in specialty coffee, is redefining how technology can elevate customer experience, drive loyalty, and fuel product innovation. As a Nasdaq-100 index company, it exemplifies how digital transformation is reshaping even the most traditional industries.

Enhanced personalisation and efficiency

Starbucks is leveraging technology to create smoother, smarter interactions between their customers and baristas1. How? Through a series of innovations that blend convenience with customisation:

  • Streamlined Pickup: Dedicated mobile order pickup lines and intelligent time algorithms ensure customers receive accurate wait-time estimates and a smoother collection experience.
  • Tailored Drive-Thru: A personalised drive-thru system recognises Starbucks Rewards members and offers curated recommendations based on their order history, turning routine visits into tailored moments.
  • Inclusive Payments: Flexible payment options allow customers to pay without a credit card or even the Starbucks app2, making transactions faster, easier, and more accessible.

Employing cutting-edge technology to drive loyalty

In 2022, Starbucks began piloting a blockchain-powered extension of its loyalty programme. Members can earn coffee-themed non-fungible tokens (NFTs), unique digital assets, that unlock real-world experiences, blending digital engagement with tangible rewards3.

Crafting product breakthroughs

Cold-brew coffees and other customisations have grown in popularity among the coffee-drinking population in recent years. It’s quite a labour-intensive process though, taking up to 20 hours to produce. To combat this, Starbucks developed Cold Pressed Technology, which, through low-pressure immersion technique, can now produce cold brew on demand in just seconds4

Keurig Dr Pepper Inc.: Creating a smarter and more sustainable cup of joe

A renowned manufacturer and distributor of non-alcoholic beverages, offering a diverse portfolio which includes coffee, carbonated soft drinks, ready-to-drink teas, water, juices, and mixers. While Keurig is widely recognised for its single-serve coffee brewing system, the technology behind it reveals a deeper story of innovation powered by embedded software, connectivity, and data science.

Smart appliances

Keurig’s connected technology is built on a cloud-computing platform that powers its smart brewers5. These appliances integrate with mobile apps and voice assistants like Alexa and Google Home, allowing users to start their brew remotely. The BrewID system customises brewing settings for a wide range of K-Cup® pods, optimising each cup based on roaster recommendations. This not only enhances the user experience but also enables Keurig to collect valuable data for continuous product improvement and more informed decision-making.

Personalised inventory management and recommendations

Through BrewID, Keurig’s SMART Auto-Delivery feature tracks pod usage and automatically reorders inventory, ensuring customers never run out. The Keurig app also offers personalised coffee recommendations and access to a recipe library of coffeehouse-style drinks, deepening customer engagement and loyalty6.

A focus on green initiatives 

Sustainability is a core pillar of Keurig Dr Pepper’s strategy. The company partnered early with an AI and robotics firm focused on reclaiming raw materials for the global supply chain7. By converting its coffee pods to polypropylene, a recyclable plastic, Keurig enabled robotic systems to accurately identify and sort K-Cup pods in recycling facilities. This collaboration exemplifies how smart design and technology can drive environmental progress.

Pepsico & Starbucks: Brewing innovation & bottling opportunity

What happens when two global giants, one known for fizzy drinks and snacks, the other for premium coffee join forces? You get a powerhouse partnership that’s not just serving beverages but also serving up serious innovation. PepsiCo, one of the top 10 companies in the Nasdaq-100 index, has teamed up with Starbucks to take coffee global and they’re doing it with cutting-edge technology, bold product ideas, and a shared vision for the future.

Innovation Meets Everyday Indulgence

Through their joint venture, the North American Coffee Partnership (NACP), these companies are delivering ready-to-drink coffee products to millions of consumers. Think bottled Frappuccinos, canned cold brews, and even oat milk-infused drinks, all designed for convenience and crafted with quality. But this isn’t just about coffee. It’s about how technology is transforming consumer brands. PepsiCo is leveraging AI, data analytics, and cloud computing to streamline everything from manufacturing to marketing. That same technology muscle is helping Starbucks innovate with new formats like juice-based energy drinks and draft-style boxed beverages8.

This partnership is a prime example of how non-technology companies are becoming technology -powered innovators, and many more just like they are also listed on the Nasdaq exchange. From smarter supply chains to personalised customer experiences, the future of retail is being shaped by data and digital transformation.

Creating for the future

These innovations underline how technological innovation is being leveraged in, and benefitting companies outside of, the traditional technology sector. Their experience also highlights some broad lessons on the critical role of technology across the entire consumer and retail realm.

Combining traditional shopping methods with virtual interactions and greater personalisation is being driven using data analytics, creating better customer experiences. Customisable and flexible payment options are another customer benefit facilitated through technological advance.

For the companies highlighted, data applications can also gather valuable information on customer behaviour and preferences which in turn can be used to build personalised products and services. The importance of better supply chain management took precedence during the pandemic. Applications developed then continue to play a critical role in allowing companies to operate more efficient supply lines, inventory management, costs, and labour.

Going forward, technology will continue to influence how companies innovate and operate across all industries. We believe investment and innovation go hand-in-hand and our Nasdaq ETF strategies provide exposure to innovative companies across multiple sectors all in one investment. 

Invesco & Nasdaq

From smart coffee machines to blockchain-powered loyalty programmes, Nasdaq-listed companies are turning everyday moments into technology -powered experiences. And the best part, you don’t need to be a technology expert to invest in this future. With Invesco Nasdaq UCITS ETFs, you can get exposure to some of the companies that are leading the charge, not just in Silicon Valley, but across industries like food, retail, and consumer technology. It’s a simple way to tap into innovation, all in one investment.

Why consider investing in innovation?

We offer a range of Nasdaq UCITS ETFs offering exposure to growing companies with strong fundamentals. Access disruptive technologies, revolutionary giants, and household names from a range of different sectors, helping provide investors with unique diversification benefits with the US large- and mid-cap equity space.

Learn more
  • Footnotes

    1. Source: Starbucks

    2. Source: Hospitality Technology 

    3. Source: TechCrunch

    4. Source: Starbucks

    5. Source: Microsoft

    6. Source: Dr Pepper Keurig

    7. Source: AMP Robotics

    8. Source: Food Manufacturing

    Investment risks

    For complete information on risks, refer to the legal documents

    Value fluctuation: The value of investments, and any income from them, will fluctuate. This may partly be the result of changes in exchange rates. Investors may not get back the full amount invested.

    Equity: The value of equities and equity-related securities can be affected by a number of factors including the activities and results of the issuer and general and regional economic and market conditions. This may result in fluctuations in the value of the Fund.

    Concentration: The Fund might be concentrated in a specific region or sector or be exposed to a limited number of positions, which might result in greater fluctuations in the value of the Fund than for a fund that is more diversified.

    Securities lending: The Fund may be exposed to the risk of the borrower defaulting on its obligation to return the securities at the end of the loan period and of being unable to sell the collateral provided to it if the borrower defaults.

    Important information

    Data as at 31 July 2025, unless otherwise stated. 

    This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security, or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.

    Views and opinions are based on current market conditions and are subject to change. For information on our funds and the relevant risks, refer to the Key Information Documents/Key Investor Information Documents (local languages) and Prospectus (English), and the financial reports, available from www.invesco.eu. A summary of investor rights is available in English from www.invescomanagementcompany.ie. The management company may terminate marketing arrangements. UCITS ETF’s units / shares purchased on the secondary market cannot usually be sold directly back to UCITS ETF. Investors must buy and sell units / shares on a secondary market with the assistance of an intermediary (e.g. a stockbroker) and may incur fees for doing so. In addition, investors may pay more than the current net asset value when buying units / shares and may receive less than the current net asset value when selling them. For the full objectives and investment policy please consult the current prospectus.

    NASDAQ® and NASDAQ-100 IndexSM are trade/service marks of The Nasdaq Stock Market, Inc. (which with its affiliates is referred to as the "Corporations") and are licensed for use by Invesco. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).

    UK: This fund is authorised overseas, not in the UK. The UK Financial Ombudsman Service is unlikely to be able to consider complaints about this fund, its management company, or its depositary. Any losses related to the management company or depositary are unlikely to be covered by the UK Financial Services Compensation Scheme. Issued by Invesco Asset Management Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH, UK. Authorised and regulated by the Financial Conduct Authority.

    EMEA4748648/2025