STARBUCKS TO SHAKE THINGS UP IN EUROPE

STARBUCKS, already restructuring at home, will now shake things up in Europe, too. The world’s biggest coffee chain is trimming down its European corporate operations and giving its long-time Latin American partner the rights to open and run cafés in four new countries. Under the licensing deal, Mexico City-based Alsea SAB will be allowed to expand the Starbucks brand in France, the Netherlands, Belgium and Luxembourg, where its presence is relatively limited compared to neighbouring markets like the UK. The tie-up with Alsea in Europe could help remove distractions from Starbucks chief executive Kevin Johnson as he focuses on turning around sluggish sales in the chain’s two most important markets, the US and China. The company declined to share financial details of the transaction. “By bringing together France, the Netherlands, Belgium and Luxembourg under Alsea, we would be unlocking untapped potential for growth to ensure the long-term success of the region,” Starbucks spokesperson Haley Drage said. Starbucks shares rose 0.5 percent to $59.39 (R843) in New York yesterday. Alsea shares rose almost 1 percent to 60.48 pesos (R45.63) in Mexico City trading. In addition to expanding its partnership with Alsea, Starbucks is closing a support centre in Amsterdam and will lay off nearly all of its 190 workers there. Four employees will shift to the company’s roasting plant in Amsterdam, which employs about 80 people. Starbucks also is restructuring its London office. The moves follow the company’s announcement of a US corporate restructuring, which included lay-offs and employee shifts. Bloomberg