Q & A with Howard Schultz - January 2010
Wake up and smell the coffee
Howard Schultz, chairman and CEO, Starbucks tells Elen Lewis why he’s determined to ensure his coffee company thrives as a business that does well and does good and reveals that he’s an Americano or a cappuccino man.
What’s the best decision you’ve ever made?
I may not have said this a year ago, but I believe that my decision to return to Starbucks as CEO in January of 2008 was one of the best I’ve made. Working through the simultaneous challenges of revitalizing our brand, reconnecting with our partners and customers and returning the company to growth – all in the worst economic environment of our generation - was nothing short of life changing for me. I had to learn a new way to run the company I loved, but that had grown enormously since I ended my first term as CEO. I had to acknowledge mistakes of the past and the realities of increased competition. Most important, I had to think very differently about the future and to lead the organization on the journey.
What’s the most valuable lesson you’ve learnt in your career?
The most valuable lesson that I’ve learned is that you can build a company that balances people and profit. Some may say that this approach is counter-intuitive. But that’s just what we set out to do nearly 40 years ago, and it’s also what will drive our future success.
I’ve always believed in what Starbucks stands for - its limitless potential to touch people’s lives. From the beginning, it captivated me with its combination of passion and authenticity. Today, we’re a brand that strikes an emotional chord with people and we are a significant part of lives around the globe – from the customer who goes out of his or her way to come to Starbucks for their morning coffee, to the store barista that serves that customer and becomes a familiar fixture in the lives of customers. Starbucks connects people in countless ways.
How important is an ethical strategy for brands of the future?
The importance of an ethical strategy cannot be overstated, but it must be authentic. Brands that don’t understand the importance of an ethical strategy, or those that see it as a marketing ploy will not be successful in the future. Consumers are smart, and they’re increasingly spending their money with companies that share their values.
Starbucks has been running our business this way since we were founded, but we’ve only recently begun to understand how to connect our customers to that work. Our partnerships with Fair Trade, (RED) and Conservation International help us. Last year, we established Starbucks™ Shared Planet™ – our commitment to do things that are good for each other and the planet – to help us align our efforts and tell our stories. From the way we buy our coffee, to minimizing our environmental footprint, to being involved in local communities. It’s doing things the way we always have, and using our size for good.
What prompted you to link up with (RED) and how have your consumers responded to the partnership?
Africa is the birthplace of coffee, and home to many of the world’s best coffees. It’s also a key coffee-growing region for Starbucks. We buy coffees from ten African countries: Burundi, Cameroon, Congo, Ethiopia, Kenya, Malawi, Rwanda, Tazania, Uganda and Zambia. Teaming with (PRODUCT)RED strengthens our connection to Africa and provides an opportunity to raise awareness with our customers in ways that are accessible and engaging. We hope that together with our customers we can make a real difference; by providing lifesaving medication to communities in need.
In just one year of partnership between Starbucks and (PRODUCT)RED, our customers have helped generate enough money to buy more than seven million days of medicine to help those living with HIV in Africa.
What’s your proudest achievement?
My proudest achievement is that we built a company that can both do well and do good. That we can be extremely profitable and competitive with a highly regarded brand, and also be respected for treating our people and our planet well. In the end, it’s not only possible for Starbucks to do both, but we can’t really do one without the other.
How do you take your coffee?
At home, I’ll make an aged Sumatra in a coffee press. When I’m out in the stores, I’ll have either an Americano or a short cappuccino. And of course, while on the road I always have a packet of Starbucks VIA™ Ready Brew with me--all you need is hot or cold water.