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Starbucks tries out a new logo

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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."

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Last updated: November 22, 2009: 12:00 PM

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