Starbucks’ new profit plan: sell coffee
Starbucks yesterday announced a new strategy of strategic growth and expanding coffee sales after a disastrous two years of economic downturn.
The company’s new plan, announced at the company’s annual shareholder meeting involves expanding sales of Starbucks’ instant coffee brand, VIA Ready Brew, and licensing its secondary brand, Seattle’s Best Coffee, for sale at a variety of fast-food chains, including Burger King, Subway and Taco Bell.
The company will also expand its food offerings, with CFO Troy Alstead noting that food now makes up a “high teens” percentage of sales.
Starbucks’ policy of rapid expansion and new outlets caused the company trouble as the recession hit, forcing closure of hundreds of coffeeshops and thousands of job losses. Despite this, the company posted increased sales, with customers returning in late 2009.
“The reframed Starbucks business proposition will deliver great coffee to every customer, in every format, and in every place they want it,” said Starbucks chairman, president and CEO Howard Schultz.