News

Starbucks to expand presence in Japan, sees U.K. sales drop

July 11, 2010

Starbucks Corporation and Ajinomoto General Foods Inc. are launching a portfolio of new coffee products this fall into grocery and convenience stores in Japan. This is the first time Starbucks coffee products will be available outside Starbucks retail stores in Japan.

The products offered include Starbucks ORIGAMI Personal Drip coffee and Starbucks VIA Coffee Essence.

Starbucks ORIGAMI Personal Drip coffee is the first Starbucks single-use drip coffee product offered in the world. The product allows customers to brew a single cup of Starbucks coffee at home that does not require any special equipment. Customers simply put the Starbucks ORIGAMI Personal Drip single-use brewer over a mug, pour in hot water, and the coffee is brewed into the mug. Starbucks ORIGAMI Personal Drip coffee is available in three blends: Starbucks House Blend, Breakfast Blend and Espresso Roast, and will be in stores in the Kanto area.

Starbucks VIA Coffee Essence is the company's first premium soluble coffee stick product in Japan, where more than 60 percent of total coffee sold is soluble. The product was launched in Starbucks coffeehouses in Japan in April 2010. It is available in Colombia and Italian Roast, in grocery and convenience stores in the Kanto area.

The two companies announced the business agreement for at-home coffee products in Japan last May. These are the first products launching as part of this collaboration. In addition to Starbucks VIA Coffee Essence and Starbucks ORIGAMI Personal Drip coffee, roasted and ground packaged coffee will also be available in Starbucks House Blend, Breakfast Blend and Espresso Roast this fall in grocery and convenience stores.

While the company is investing in the Japanese market, recent filings in the United Kingdom show ithe company lost nearly $15 million for the 12 months to last September. The U.K. is one of Starbucks' largest overseas markets, with 712 locations. Only Canada and Japan have more. The Guardian newspaper reorted the loss could be the result of competition from Costa Coffee.

In the United States, Starbucks has partnered with Georgia-Pacific to test the viability of recycling store waste.

In a pilot project later this year, select Starbucks stores in Chicago will provide cups, sleeves, corrugated containers, plastic lids and cups and other material for recycling. GP Harmon, a recycling subsidiary of Georgia-Pacific, will collect, sort, market and sell the Starbucks materials.

The paper-based waste will be combined with other recycled paper to make napkins for Starbucks.