Starbucks' Howard Schultz: "Trenta Is What Customers Wanted" (SBUX)

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“Believe it or not, Trenta is the answer to what customers wanted,” Howard Schultz, the Chairman and CEO of Starbucks
SBUX
, told CNBC this afternoon. In response to the firestorm of news surrounding the 31-ounce cup, Schultz said, “Let me try and clarify at least some of the fiction from fact. First off, the 31-ounce beverage was a response from customers who wanted iced coffee and iced tea only in a larger size. As we roll this out I think people will see we're not going against the trend.” “All we're trying to do is meet or exceed the expectations of the customer,” Schultz adds. But new cups are only a small part of the Starbucks business plan, which includes a
deal with Tata
to expand into India. “These kinds of emerging markets are filled with peril if you don't have local talent and local knowledge of the consumer,” Schultz said, adding that the Tata partnership has given Starbucks a tremendous strategic advantage. “We have about 800 stores in Greater China, about 400 in the mainland,” Schultz boasted. “We're making money in China. The work we've done over the last [decade] has really built the brand. We believe over time there will be thousands of stores in China.” However, Schultz said that they will not make the same mistakes as they made in the past. Most importantly, Starbucks won't open a new location just for the sake of growth. Finally, with regard to the new logo, Schultz said that while many people have perceived the design as being geared toward the international market, it's more about the brand and where the company is headed. “It's international, but I think it's even more than that,” he said. “I think over time there will not only be products that have coffee in it, there will be other products. The brand needed to evolve for us to enter into new channels [where coffee may not exist].”
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Posted In: CNBCNewsMovers & ShakersGeneralConsumer DiscretionaryHoweverRestaurantsSchultzStarbucksTrenta
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