The world's largest coffee chain announced Tuesday it will begin posting calorie counts for its popular coffee drinks on menu boards in its stores. The company is beating the government to the punch with the move, as the US Food and Drug Administration is currently finalizing a new regulation that will require food chains with more than 20 locations to post calorie info on menus. Several other large chains, such as McDonald's, have also decided to begin posting nutrition info in stores prior to the government making it mandatory. Of course, in some cities such as New York City calorie counts are already required for chain restaurants.
Starbucks announced on Friday it will begin paying more taxes in the United Kingdom in response to criticism from British officials and the media. Reuters reported in October that the coffee chain had reported 13 straight years of losses in tits UK division, even though the company had described the division as profitable to investors. In fact, the company had described the UK division as one of its best performing units among overseas markets. Engsov added that while data is still being examined, the company believes it can pay about 10 million pounds in each of the next two years in addition to the taxes it already pays in the UK.
British authorities are investigating a group of giant US companies for possible tax evasion. The UK Parliament's Public Accounts Committee held an unusual hearing on Monday to address claims that Google, Amazon and Starbucks have been hiding earnings in the UK for years in order to save money on their tax bills. Officials charged that Starbucks' claims that it has been losing money in Britain are simply not believable. Starbucks, which has operated in Britain for 15 years now, has claimed a net loss for UK operations in all but one of the years it has operated there.
The world's largest coffee chain issued second-quarter numbers Friday morning, send shares down as much as 12 percent during the day with a rare Starbucks miss. In addition to missing Wall Street estimates for both earnings and revenue, the iconic Seattle chain also offered a lowered forecast for the current quarter and fiscal 2013. At one point early in the session, the stock slipped to $46.23, giving back a 14 percent gain made by the stock since the year began. though it had climbed back to $47.33 with just 15 minutes left in the trading day.
Starbucks continued to make a push to be known for more than coffee Thursday by revealing a plan to open a specialty tea shop near its company headquarters on the southern edge of Seattle's Ravena neighborhood. The 1,700 square foot shop will operate under Starbucks' Tazo tea brand, and will feature more than 80 different varieties of tea leaves sold by the ounce when it open this fall. The store will have a tea bar, where customers will be able to purchase teas and lattes just like in a standard Starbucks, the company is counting on the store's planned blending station to lure in customers.
Green Mountain Coffee Roasters stock plunged 40 percent in after-hours trading after the company posted extremely disappointing quarterly numbers and lowered its forecast for full-year earnings. After ending Wednesday's session at a share price of $49.52, the stock dropped more than $20.00 a share on the news, and was sitting at $29.40 as of 8PM ET. The company's per share earnings were in line with analyst estimates, at 64 cents a share, but revenue missed expectations badly, at $885 million compared to projections calling for $972 million.
Starbucks announced on Thursday it will gradually phase cochineal extract from its drinks in response to consumer outrage over the food dye, which is made of crushed up insects. A statement from the world's largest coffee chain's President was apologetic to customers, and identified four food products and two beverages which the Seattle-based company used the dye in.
Starbucks unveiled an ambitious growth strategy for the Chinese market on Tuesday which involves increasing its number of stores from 500 to 1,500 by 2015. In just two years, Starbucks believes that China will become the world's biggest market for coffee drinks behind the US. The world's largest coffee house chain has already enjoyed tremendous growth in the Chinese market, opening an average of one new store every four days last year, exceeding the expectations of even its most bullish prognosticators.
According to a report from the Seattle Times, the world's largest coffee chain uses an ingredient called cochineal extract in some of its products. The ingredient, which Starbucks uses as a dye in the sauce for its Strawberries & Crème Frappuccino and other products, is a substance made from ground up insects found in Latin America. The coffee chain's use of the dye first made news last month when a vegan barista that works for the company sent the ingredient list for the strawberry sauce to ThisDishIsVegetarian.com, who posted the list on its website earlier this month.
Starbucks, the world's largest coffee chain, officially expanded its business Monday when it opened the first of a planned chain of juice bars dubbed Evolution Fresh. The new chain of juice bars began with a location in Bellevue, Washington, just down the road from Starbucks' Seattle headquarters. The company acquired the Evolution Fresh brand of juices last November, and has been selling the products in grocery stores, and will also begin selling the juices in its 17,000 coffee shops around the world later this year.