Wednesday, February 18, 2009

Britain Versus Starbucks



Could that overpriced coffee maker for fauxhemians cause a rift between the United States and its longtime Atlantic partner Great Britain? This is a dark time all around The West -- a two-front War on Terror, economic decline -- and whispers of protectionism are on the rise. Could a roasted hot beverage maker add to the political temperature bittersweetly? From The Telegraph:

"Mr Schultz, chief executive of troubled coffee store giant Starbucks, had earlier told television business network CNBC, that 'the concern for us is Western Europe and specifically the UK. The UK is in a spiral.'

"Asked later about the comments, a clearly furious Lord Mandelson responded to the Telegraph: 'Why should I have that guy running down the country? Who the ---- is he?'

"The UK's Business Secretary, who was on a one-day trip to New York, then added: 'How the hell are they doing?' The remark was a clear reference to the recent economic troubles of Starbucks, which has announced the closure of nearly 1,000 unprofitable stores in recent months.

"Lord Mandelson earlier gave a speech at the Council of Foreign Relations about the world economic crisis and accompanied health secretary Alan Johnson at a series of discussions with US pharmaceutical companies about investment deals in Britain.

"... Pressed by (CNBC's) Ms Bartiromo about economic conditions in Britain, Mr Schultz continued: 'Unemployment, the subprime mortgage crisis specifically in the UK, and I think consumer confidence in the UK is very very poor.'

Less than an hour later, the presenter asked Lord Mandelson about those comments on the same show. Clearly frustrated, he responded: 'The UK is not spiralling, although I have noticed that Starbucks is in a great deal of trouble. But that may be because of their overexposure given the state of the market. So please do not project Starbucks onto the UK economy as a whole.'"


Curiously, London's Channel 4 newsroom Twittereed this morning: "We are on the look out for anyone who was at the cocktail party with Peter Mandelson last night." Sounds like there is more to come on this story, no? More here.

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