Starbucks Coffee Changes Their Name to Starbucks
Posted by Belushi on June 21, 2007
No, it’s not official yet. But I figure it’s only a matter of time until Starbucks drops the word Coffee from their famous name. Why? Because Starbucks is not just a coffee company anymore. They are transforming themselves into a commodities company and a media company. And they are going way, way beyond just brewing coffee.
I recently read a great book about Starbucks, Grande Expectations. The author, Karen Blumenthal, follows Starbucks stock for a year to chronicle what makes it go up and down. In the book it details many of Starbucks latest endeavors. Most notably their burgeoning music business, which includes making first-run albums with musicians, like Paul McCartney, and selling those albums in Starbucks locations. But Starbucks is also getting into movies (Akeelah and the Bee), water (Ethos), food and consumer merchandise. Basically they are becoming a commodities company, selling anything that will drive more revenue.
So as Starbucks makes this shift in strategy into other areas, it’s only natural that they drop the word Coffee from their corporate name and logo. Because does it really make any sense to buy the latest Madonna CD from a coffee company?
And besides, Starbucks would just be following the path that certain other notable American corporations have established. Apple used to be known as Apple Computers, until they decided to start selling MP3 players and phones. And Apple’s rival Microsoft years ago was known as Microsoft Computers. But MSFT had the foresight to drop the “Computers” from their name long before they started selling game systems like Xbox. And a long, long time ago Pepsi was known as Pepsi Cola. But the softdrink giant dropped the Cola once they realized there was money to be made in clothing, burritos (Taco Bell) and fried chicken (KFC).
So the next time you walk into your neighborhood Starbucks, look around at all of the other stuff they are selling. Then you’ll realize it’s only a matter of time until they drop the coffee. And when they do, remember that you heard it here first.
The new Starbucks logo. It’ll probably need to be reworked, since it looks a little naked without the coffee.
Have you bought anything from Starbucks other than coffee?
cuzoogle said
I am not a coffee drinker so I have never gotten on board the starbucks train.
They should put Jessica Albo on the logo, maybe then I would go in.
Brock Landers said
I’m not a coffee drinker either. And it seems to me that paying over 3 bucks for something 12 oz is a little pricey.
Belushi said
Yeah, I’m in the same boat. I don’t drink coffee, so the Starbucks lure is useless on me. But I do admire their business accumen. To be able to command $3+ for a cup of coffee is impressive.
And I do buy Starbucks gift cards there for friends who drink coffee. Starbucks has millions of dollars in gift cards out there, that’ll never be used. Just more “pure profit” for the coffee giant from Seattle.
jlemoo said
Microsoft was “Microsoft Computers?” I had never heard that. I thought they were always just “Microsoft.” Are you sure? It seems unlikely, given that they had never sold computers.
Belushi said
Microsoft’s earliest days in New Mexico (or wherever they were right after Seattle, and before they moved back), they went by Microsoft Computers. Gates & Allen were doing all sorts of stuff in those days as they tried to find their way.
Details that stuff in a book called “How the Web was Won.”