Starbucks Brewing Trouble in Europe
U.S.-based coffee chain Starbucks (NASDAQ:SBUX) is taking the war for market share into Nestle’s own backyard. The chain is planning to ramp up its store presence in Europe and to give Nestle some serious competition in the instant coffee business.
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In an interview with the Financial Times Deutschland published Friday, Starbucks chief executive Howard Schultz said, “Nestle has done a fantastic job with Nespresso and created a billion-dollar business — it is time that we heat up the competition.” But doing so may not be easy, given that Nestle is the 800-pound gorilla in the global instant coffee business.
The paper also quoted Michelle Gass, head of Starbucks’s EMEA business, as saying, “First, we will spend some real money on marketing to make Starbucks bigger in Europe,” and going on to add that Germany could see as many as 1,000 Starbucks stores, though he did not give a time frame.
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