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Friday, January 29, 2010

Starbucks is so big it owns its 'competitors'

I always wondered why some former Starbucks kiosks became Seattle's Best kiosks over the last I know why from an interview with Starbucks CEO Howard Schultz in Time Mag:

Seattle's Best Coffee Seattle's Best Blend, Ground, 12-Ounce Bags (Pack of 3)You've started selling another of your brands, Seattle's Best, in Subway sandwich shops. What's the strategy there?
Seattle's Best has been under the shadow of Starbucks, and as we began to transform the company, we realized that it should be managed for its own destiny. We think we're sitting on a billion-dollar brand, and we want to unleash Seattle's Best to do things that Starbucks can't do. It has more of a mass appeal. It's a more approachable coffee in terms of its taste. There are a number of [fast-food] companies that want to get into the breakfast business and don't have a coffee solution. Subway is just the first. READ THE REST

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