August 9, 2022

Starbucks Reorganizes for Growth

The company said it would divide responsibilities for its business into three global regions: Asia, the Americas and a region containing Europe, the Middle East and Africa. Starbucks, the coffee giant, now has two units, the United States and international.

Three company executives have been appointed to lead the new regions.

Howard Schultz, chief executive of Starbucks, said the change would help maximize its opportunities in growing markets like China, Brazil and India.

Starbucks, which is based in Seattle, has nearly 11,000 stores in North America and almost 6,000 elsewhere.

It had a major slump in the recession after changing consumer habits and a rapid overexpansion. It slowed growth, cut jobs, closed stores and reorganized. Sales in cafes have rebounded, and the company is expanding its overseas and consumer products businesses.

The United States still generates most of its revenue. Nearly three-fourths of the $10.7 billion Starbucks brought in during its most recent fiscal year was from the United States. But Mr. Schultz said international business eventually would produce at least half the company’s revenue.

Starbucks is one of many consumer products companies looking overseas for growth as the middle class expands abroad. One of the biggest prizes in pure growth is China, Mr. Schultz said in an interview. Starbucks said it also planned to expand in India this fiscal year and in Vietnam the next year.

John Culver, who leads the company’s international business, will be president of the China and Asia Pacific region.

Cliff Burrows, president of Starbucks United States, will head the Americas region, which encompasses the United States, Canada, Mexico and Central and South America.

Michelle Gass, president of Seattle’s Best Coffee, was named president of Starbucks’ Europe, Africa and Middle East region.

Other changes announced Monday include transferring responsibility for Seattle’s Best to Jeff Hansberry, head of the company’s global consumer products and food service business. Annie Young-Scrivner, global chief marketing officer, will also oversee its Tazo tea business.

Starbucks said it would continue to push its consumer products, such as Via instant coffee, under the new management structure.

The company said the transition would be complete by September.

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