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How Starbucks Coffee Became a Worldwide Success

Apr 1, 2008
Starbucks coffee is one of the top names in the cafe industry, producing high-class beans, brewing accessories and building caffeine shops worldwide. However, Starbucks coffee started out the same as any other business ?with a few shops and enough products to sell.

The history of Starbucks cafe began in Seattle around 1971 when three friends (Zev Siegl, Gordon Bowker and Jerry Baldwin) opened their small shop and began selling freshly roasted caffeine beans and brewing accessories. It branched out to six outlets throughout Washington around 1980, when Zev Siegl sold out in pursuit of other ventures.

Howard Schultz and His Vision

In 1982, a plastics salesman named Howard Schultz was hired as head of the marketing department of Starbucks coffee. During a trip in Italy around 1983, Schultz found himself obsessed with Italy's cafe beans and industry, which started his idea of setting up a caffeine shop in the United States. Unfortunately, Baldwin wasn't too excited about Schultz's idea, but he did let him test the idea by implementing a small espresso bar in one of the Starbucks stores. Because of its immediate success, Schultz opened up his own store named II Giornale.

It was only in 1987 that Shultz started a worldwide name for Starbucks coffee when Baldwin decided to sell the company for $3.8 million. Schultz convinced several investors of his vision ?120 Starbucks outlets for the next five years. He converted the six Starbucks shops into cafe houses and changed the name of II Giornale shops into Starbucks.

In 1992, the Starbucks caffeine shops in operation totaled 165, exceeding Schultz's original vision. Today, over 8,000 cafes in thirty countries are in operation with annual revenues of over $7.5 million.

Starbucks Coffee Liqueur

Starbucks cafe liqueur is the company's adult-only version of their line of caffeines. Sold in 750 ml bottles, the main idea of the company is to sell the liquor, their coffee and the name Starbucks into one. The product itself comes from 100 per cent Starbucks cafe combined with 20 per cent alcohol. This line of liquor-caffeine product is a result of a joint venture with Jim Beam Brands, which is a major player in the wine industry. The reason for the marketing of this product was due to a Starbucks survey that revealed that over 50 per cent of their loyal clients consumed coffee liquors.

Starbucks cafe has collaborated with other companies, such as Dreyer's Grand Ice Cream and Pepsi-Cola Company. With the company's collaboration with Jim Bean, Starbucks caffeine reports that their DoubleShot remains the number one in the liquor-coffee category.

With the production of high-class cafe beans, brewing accessories, caffeine makers and espresso machines as well as the collaboration of different top players in other industries, Starbucks coffee continues to produce well-known products that both loyal patrons and new caffeine drinkers love.
About the Author
John Hilaire is a webmaster for the Keurig Coffee Maker related website.Find Gevalia Coffee at http://www.financehm.com/
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