Starbucks Corp. reported a 13 percent jump in profits in its first fiscal quarter which was driven by high-end sales in the US and China, where other cafes have suffered losses lately. The results matched the expectations of the Wall Street, which predicted similar high rise profits.
AActor Patrick Dempsey’s Global Baristas LLC informed that its bid for Seattle-based Tully’s Coffee was accepted. Also Starbucks Corp. and Baristas Coffee Co. took part in a bankruptcy auction. The “McDreamy” Patrick Dempsey's company is to pay approximately $9.15 million for a small coffee chain.
On the 3rd of January, Starbucks Corp. informed that it would launch its first café in Vietnam in February 2013. The decision comes as the Seattle-based company is trying to expand its presence in the Asia-Pacific region.
Starbucks Corp. returns to its expansion plan as it has announced that it is going to open as many as 2,400 outlets in just two years. Two major markets, which will see the Starbucks Corp.’s expansion, are China and the United States. If the company’s expansion plans is achieved, Starbucks Corp. will have over 20,000 stores worldwide.
Starbucks Corp. informed that it started talks with the HMRC as the company has been facing growing criticism since it was revealed that the world’s most known coffee chain paid only £8.5 million in corporation taxes in 14 years. In addition, Starbucks Corp. might pay more in the near future as it is reviewing its UK tax approach.
Starbucks Corp. will open its first store in India by the end of October in an upscale neighborhood of Mumbai. The company has also appointed Avani Saglani Davda a chief executive to head its India joint venture.The company will launch its first store in India through the partnership with Tata Global Beverages.
Starbucks Corp. has introduced its new single-serve brewer Verismo, which will be sold online this weekend for $199. The Starbucks Verismo is planned to be sold in the company’s cafés next month. The competitive prices of the Starbucks new coffee machine could be a threat to brewers from Green Mountain Coffee Roaster Inc. and Nestle SA, the dominant players in the single-serve coffee market valued at $8 billion.
Starbucks Corp. is expanding its market outside U.S. Starbucks, in venture with Tata Global Beverages Ltd., has plans to open first 50 coffee shops in India by August this year. Starbucks believes that this is Starbucks move to tap rising coffee consumption in the world’s fastest major growing economy after China. It seems like Starbucks might have to face quite a few challenges to enter into a nation of tea lovers.