So Starbucks (NASDAQ: SBUX) is in a bit of trouble. The stock's down 50% from its all-time high set in 2006, and visionary Howard Schultz has come out of retirement to try to right the ship.And the result is ... drumroll please ... a brand new logo! The iconic green logo is gone in favor of an all-brown logo with a mermaid in the middle.
According to BusinessWeek, "Starbucks plans to use the logo on all its cups for about eight weeks. It will remain in ads and as the logo for Pike Place bags of coffee. The new blend, which will be available in every store, has been crafted for a smoother, cleaner finish than many of the rotating blends Starbucks has traditionally carried week to week."
I could be wrong, but I doubt that Schultz's turnaround effort will succeed or fail because of a logo. And if this is the best Schultz can do, I for one am not impressed. The logo's designed to harken back to the company's roots as a local coffee shop -- but that's not what Starbucks is, and I don't think people are dumb enough to decide Starbucks is cool again because the logo is brown and has a mermaid on it.
For a great example of the bear case on Starbucks, check out this piece from Chuck Jaffe. He named it the "Stupid Investment of the Week."











Reader Comments (Page 1 of 7)
4-14-2008 @ 1:38PM
jesse said...
I believe this is the same as their original logo circa 1971.
4-14-2008 @ 2:00PM
Todd said...
If you just woke up from a three month sleep, you would think the only thing Starbucks is doing is a logo.
Among other things rolled out at the shareholder meeting:
- This was rolled out with a new everyday coffee, fresh ground called Pike Place roast
- Free wi-fi, customization and refills for Starbucks Card holders
- New, better espresso machine equipment for majority of stores by end of '08
- High-end, press-style brewing equipment called clover for select stores
4-14-2008 @ 2:27PM
Regina said...
KRAFT after Starbucks ????
4-14-2008 @ 10:16PM
scott g said...
The story is not the new logo, the story is the genius behind the company's beginnings is refocusing himself - that in itself is a story. Getting back to quality drinks (I can already taste better coffee at the stores) and more consistency will prove the best strategy for SBUX long term.
4-14-2008 @ 10:43PM
Laurie said...
the logo is a Siren not a mermaid. Just so you don't get confused
4-15-2008 @ 6:51AM
rICH said...
this may be the worst logo ever in the history of logos.
4-15-2008 @ 6:52AM
RICH said...
the decision to change the current logo to this might indeed be proof that drinking starbucks coffee causes brain damage.
4-15-2008 @ 7:13AM
bgballen said...
no logo will work to sell coffee. make it sweet, make it cheap, that will keep, us comming back
4-15-2008 @ 7:14AM
Renee said...
I think Zac is missing the whole point with the new logo. Its not that Howard thinks that will turn his company around, its the whole, complete change, Just something different. I used to work for Starbucks, its an amazing company to work for. The coffee is not for everyone but none the less a great place to work and I think the coffee is great. Howard is doing everything he can to turn the company around, including purchasing new coffee machines, he had the new blend made, he cut staff, hired new staff and retrained partners and managers, listening to customers and complaints and, and on and on. The problem is they spread themselves to thin, which is why Jim was fired, he buried Starbucks, now Howard is trying to dig himself out.If anyone can do it, its Howard.
4-15-2008 @ 7:24AM
grace said...
it all comes down to that the economy is in trouble and we are spending money paying bills instead of buying cups of coffee from any coffee house. I sure have been cutting back because of rising prices of everything.
4-15-2008 @ 7:27AM
hwhitqueen said...
You are so misinformed. I am a Barista for Starbucks and I can tell you that the logo you see if the original logo of starbucks. Even our current logo (green logo) has a mermaid or we call it a siren. It is from Moby Dick.
Their are a lot of very exciting things happening at Starbucks. This new amazing coffee, the new procedures in steaming the milk, to having better tasting espresso shots. And now the new brewing machines. It's not just for the espresso drinker anymore, it's for the customer who is passionate about their brewed coffee also. Our new Pike Place coffee is amazingly good. We have had nothing but positive feedback about it. It's the freshest coffee. We get it in the store within 2 weeks from the roasting plant, we grind as we need to give everyone the best tasting brewed coffee. We have a fresh pot every 30 minutes. Now that we brew Pike Place Roast everyday, it gives us more opportunity to french press some of our coffee line ups. It's give us the opportunity to connect and to have coffee tastings. We at Starbucks are passionate about our coffee, I am so excited about all of what Howard Shultz has done. I think the majority of our passionate customers that come in day after day because nothing is comforting can tell you they have noticed a change. We care, and we want you to experience who we are.
4-15-2008 @ 7:29AM
Ruthie said...
I'm all for a company trying to get back to its "routes." Besides, logos are a fun way to express yourself. Why not incorporate a new look every now and then? Even if it doesn't help sales, at least it shows the company doesn't want to just stand still. The mermaid looks scary and somewhat disturbing, but I like the brown.
4-15-2008 @ 7:42AM
William said...
The problem isn't the logo. The problem is them creating some Zen-like mecca for people who think they are getting some "Better" coffee because the price is outrageos...Wrong. I bet a majority of people just want to be seen carrying a SBUX cup around...like my girlfriend. You are perpetuating yourself to be an idiot by spending that kind of money on what you think is some grass-roots beverage company telling you that to have this coffee..made by an underpaid flunkie...you must fork over 10 USD for 2 people to have some common ground?? I DONT THINK SO. You want to be real? Go to Dunkin Donuts witht the rest of us. Simple fact, SBUX was making so much business at one point they.......rose prices? D-D baby, all the way!
4-15-2008 @ 7:42AM
DecorsByRosi said...
What was Starbucks thinking when they went with this marketing idea. Someone in there advertising firm must have been asleep. I love there coffee but this new label is ugly and just wrong for them. I know that profits are down but to go with something so ugly and wrong this will only make the profits go down even more in my opinion. they should have come up with something more cherry and bright looking in my opinion.
4-15-2008 @ 7:47AM
MVP said...
I love going to Starbucks, but as the Fed continues to devalue my dollars by printing moeny (which IS the problem in this country and no candidate running now is going to fix it, so don't wate your vote) I have fewer of them available for $4 coffee...plus the same phenomena increases their costs. Result? Lower profits. It's that simple. The CFR run Fed is ruining this country, plain & simple, and until Americans get on to this nothing will ever change.
4-15-2008 @ 8:07AM
VAH1TEXAN2 said...
SBUX is my payday treat and any other time treat as well. However, $5.95 for a Quad Vente White Mocha is just a but much. I've stopped going all together. None of the store seem to have matching prices, sometimes it is $5.85 and others $6.15? Going up on the already outrageous prices was not the best marketing idea. It is all about supply and demand. When supplies are low, prices are high; whereas, when the demand is high, the prices are lower. That is Marketing 101. Like many others, I am now going elsewhere for my Lattes and have purchased my own expresso machine and buy coffee beans at Wal-Mart and Duncan Donuts!
I do love my SBUX, however in light of the current economic scheme of things - WAKE UP SBUX! No change in design is going to change anything; oh yea, what about all the current cups with the logos, will you use all those up first prior to bringing out the new ones?
4-15-2008 @ 8:10AM
J Boyd said...
"The logo's designed to harken back to the company's routes as a local coffee shop"
That's "roots", not "routes". Is one of America's fastest disappearing jobs copy editing?
4-15-2008 @ 8:12AM
Unknown said...
No matter the logo, the coffee is still over priced and over rated. Prefer Maxwell House anyday!!!
4-15-2008 @ 8:13AM
buxer said...
Starbuck is failing because they can't make a cup of coffee anymore. I quit Starbuck because all they serve is mud. It doesn't even taste good anymore. The coffee used to be nutty and full and now all I get is rock-gut nasty tasting coffee. Starbuck forgot it was about good coffee and not about the caffeine. Sorry StarbuNk!!!!!!!!!
4-15-2008 @ 8:15AM
LAMB said...
EEEEEwwwww!