Coffee giant Starbucks is looking at an alluring new market for expansion, one with a rich history as a coffee-obsessed market: Italy.
With Starbucks on the corners of streets in every major American city, the world's biggest coffee chain now is making plans to come full circle and introduce Italians to Starbucks brewed coffees.
Corriere della Sera, an Italian daily newspaper, has reported that the world’s largest coffee company may attempt to bring the brand to Italy by partnering with a local businessman. The deal is expected to be signed by Christmas, Reuters reports, citing the newspaper’s piece.
Starbucks is currently opening new branches worldwide at a rate of three per day. "We're taking a softly, softly approach when it comes to Europe," explained a spokeswoman for Starbucks Europe. "We expect to open shops in the big four countries — Italy, Germany, France and Spain — in the next 24 to 36 months."
The company has had branches for some time outside of the United States, in places as far and wide as Thailand, Dubai, and Saudi Arabia. In many of these countries, Starbucks coffee struck its customers as exotic, enticing, and addictive. The Japanese are particularly addicted to the American import, with over 200 outlets serving customers throughout the country.
If Starbucks were to enter the market with a retail presence, it would finally dip its toes into one of Europe’s largest coffee markets. Italians prefer dark-roasted coffee and back home-grown brands like Lavazza and Segafredo.
For Italians, drinking their coffee is as routine as breathing, so Italy may be a difficult market to crack, as it is highly competitive and local brands have significant market share. Italians are also well versed in coffee, thus having high expectations.
Starbucks' challenge will not only be its ability to open and maintain branches world-wide, but to overturn decades, if not centuries, of tradition.
Coffee is already currently the second largest traded commodity in the world, just after oil. With Starbucks pushing into newer territories faster than it can come up with new coffee variations, this trend looks set to continue.
