Starbucks' Schultz and What it Means for Consumer Packaged Goods Business

From by Packaged Facts
Coffee giants made major gains away from stores and will thrive despite CEO stepping down, finds Packaged Facts

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Coffee giants made major gains away from stores and will thrive despite CEO stepping down, finds Packaged Facts

ROCKVILLE, Md., Dec. 5, 2016 /PRNewswire/ -- The holiday season didn't just ring in the news about the return of Starbucks' famed (and controversial) red cups. In other big news, longtime Starbucks chief Howard Schultz announced that he was stepping down as CEO of the company, effective April 2017. Schultz plans on staying on board as Executive Chairman, turning the CEO reins over to Starbucks President and COO Kevin Johnson.

Schultz's remarks about his departure mostly focused on his view that the "U.S. was over-retailed" and that to survive and succeed, retailers would need to change their physical presences into "premiumized, experiential consumer venues." To this end, Schultz said that he would focus his attention on Starbucks reimagining of retail – the Starbucks Roastery and Reserve brands. Schultz said that the company's Seattle Roastery has become a laboratory for "breakthrough innovation and experiential design" that will lead to the next generation of Starbucks stores.

Lost in this news are the incredible inroads that Starbucks has made in sales away from its stores, notes market research publisher Packaged Facts, which will release brand new reports on the coffee and tea industries within the next week, including the joint title Coffee and Tea: U.S. Retail Market Trends. View Packaged Facts' collection of coffee and tea themed market research reports at:

The company said that its consumer packaged goods (CPG) growth has been very strong. This has been achieved in the following ways:

  • Starbucks has been the number one K-Cup brand for the 5th consecutive quarter.
  • Starbucks roast and ground coffee has been the top premium coffee brand, outpacing growth in the overall segment.
  • Overall, it ranks as the number two coffee brand.
  • The Starbucks ready-to-drink offerings such as Double Shot, Frappuccino and Chilled Multi-Serve, through its partnership with PepsiCo, are the leaders in ready-to-drink coffee.
  • 80% of U.S. coffee occasions happen outside of coffee shops
  • Starbucks has more than 500 Signature Aisles across grocery stores across the country
  • The company also has new CPG offerings in China, Latin America and Europe.

The company is also about to take on the ready-to-drink packaged tea segment, with the launch in the first half of 2017 of its premium Teavana ready-to-drink teas in the U.S. through its partnership with Anheuser-Busch.

Starbucks is certainly "firing on all cylinders" in its CPG business, as Schultz said in an investor call earlier in 2016. It remains to be seen whether the company will continue to motor on without Schultz at the helm. Packaged Facts is betting the company's growth won't stall.

About Packaged Facts

Packaged Facts, a division of, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, consumer packaged goods, and pet products and services.  Packaged Facts also offers a full range of custom research services. Reports can be purchased at our company website and are also available through

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SOURCE Packaged Facts