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Starbucks Success
Coffee Articles
Starbucks coffee is one of the top names in the coffee
industry, producing high-class beans, brewing accessories and building
coffee shops worldwide. However, Starbucks coffee started out the same as
any other business – with a few shops and enough products to sell.
The history of Starbucks coffee began in Seattle around 1971 when three
friends (Zev Siegl, Gordon Bowker and Jerry Baldwin) opened their small shop
and began selling freshly roasted coffee beans and brewing accessories. It
branched out to six outlets throughout Washington around 1980, when Zev
Siegl sold out in pursuit of other ventures.
Howard Schultz and His Vision
In 1982, a plastics salesman named Howard Schultz was hired as head of the
marketing department of Starbucks coffee. During a trip in Italy around
1983, Schultz found himself obsessed with Italy’s coffee beans and industry,
which started his idea of setting up a coffee shop in the United States.
Unfortunately, Baldwin wasn’t too excited about Schultz’s idea, but he did
let him test the idea by implementing a small espresso bar in one of the
Starbucks stores. Because of its immediate success, Schultz opened up his
own store named “II Giornale”.
It was only in 1987 that Shultz started a worldwide name for Starbucks
coffee when Baldwin decided to sell the company for $3.8 million. Schultz
convinced several investors of his vision – 120 Starbucks outlets for the
next five years. He converted the six Starbucks shops into coffee houses and
changed the name of II Giornale shops into Starbucks.
In 1992, the Starbucks coffee shops in operation totaled 165, exceeding
Schultz’s original vision. Today, over 8,000 cafes in thirty countries are
in operation with annual revenues of over $7.5 million.
Starbucks Coffee Liqueur
Starbucks coffee liqueur is the company’s “adult-only” version of their line
of coffees. Sold in 750 ml bottles, the main idea of the company is to sell
the liquor, their coffee and the name Starbucks into one. The product itself
comes from 100 per cent Starbucks coffee combined with 20 per cent alcohol.
This line of liquor-coffee product is a result of a joint venture with Jim
Beam Brands, which is a major player in the wine industry. The reason for
the marketing of this product was due to a Starbucks survey that revealed
that over 50 per cent of their loyal clients consumed coffee liquors.
Starbucks coffee has collaborated with other companies, such as Dreyer’s
Grand Ice Cream and Pepsi-Cola Company. With the company’s collaboration
with Jim Bean, Starbucks coffee reports that their DoubleShot remains the
number one in the liquor-coffee category.
With the production of high-class coffee beans, brewing accessories, coffee
makers and espresso machines as well as the collaboration of different top
players in other industries, Starbucks coffee continues to produce
well-known products that both loyal patrons and new coffee drinkers love.
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