New Starbucks Exec Structure Formed to Perk Up Multi-Brand Growth


New Starbucks Exec Structure Named to Perk Up -Kandessa Medi Multi-Brand Growth

Starbucks Coffee Company reported that it will have a new corporate structure effective at the end of September. The new alignment, according to the Seattle-based coffee house giant, will facilitate its growth strategy.

The new regional structure will move all U.S.-based markets and the 54 international markets into a new three-region structure: China and Asia Pacific (all Asia Pacific markets and China); Americas (United States, Canada, Mexico and Latin America); and EMEA (Europe, U.K., Middle East, Russia and Africa). Currently the markets are simply organized as Starbucks U.S. and Starbucks Coffee International (SCI).

“Today we are successfully executing our multi-brand, multi-channel strategy and we believe the leadership and organizational moves announced today will optimize our speed and focus going forward," said Howard Schultz, chairman, president and chief executive officer of Starbucks.

Starbucks announced the appointment of the following leaders, who will report to Schultz. Each president will oversee each of the three new regions, and work cooperatively with Consumer Products Group (CPG) and foodservice units:

  • John Culver will become president of the China and Asia Pacific region. He will be tasked on executing  the retail strategy there in one of Starbucks' fastest growing regions stemming from markets in India, China and Japan. Culver arose to fame in providing strong leadership to SCI over the last two years and is now, "navigating the complex operating environments."
  • Cliff Burrows will be named president, Americas, and will manage the businesses in the United States, Canada, Mexico and Latin America. Burrows is known for executing to a high operational level, helping the U.S. business achieve records in sales metrics and customer satisfaction.
  • Michelle Gass a 15-year veteran, will be president for Starbucks EMEA. In this role, Gass will be charged with providing leadership to the company-operated markets in this region, which includes the United Kingdom, France, and Germany. She will also be responsible for growing and developing Starbucks joint venture and licensed operations in Europe, Russia and the Middle East.

Seattle's Best Coffee (SBC), a projected one billion dollar business for Starbucks, will remain an independent business unit. Jeff Hansberry, will serve as SBC’s president, in addition to his current role as president, Global Consumer Products and Foodservice.

Annie Young-Scrivner has been appointed president of Tazo, expanding her role as current Starbucks global chief marketing officer. The Tazo tea brand, acquired in 1999, is a $1.3 billion business for the chain, which has primarily focused on coffee over the years. Starbucks officials say that globally, tea is a $87 billion business opportunity.

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Photo: courtesy of Starbucks

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