Howard Schultz

Yeah, and I never had any idea, of course, that what was about to happen and unfold over the subsequent years. But that was, I arrived in 1982 as the head of marketing.

Yeah, and I never had any idea, of course, that what was about to happen and unfold over the subsequent years. But that was, I arrived in 1982 as the head of marketing.

Yeah, it was de minimis. There was another coffee company, which was Seattle's Best Coffee, which was another retailer that was kind of at the same size and scale at Starbucks, both equal at the same time. But you couldn't even get a New York Times in Seattle in 1982, 83. There was no good food to speak of.

Yeah, it was de minimis. There was another coffee company, which was Seattle's Best Coffee, which was another retailer that was kind of at the same size and scale at Starbucks, both equal at the same time. But you couldn't even get a New York Times in Seattle in 1982, 83. There was no good food to speak of.

And Starbucks was a true pioneer where they were educating customer after customer about what good coffee tastes like. And the Pike Place Market gave them an interesting vehicle because of the tourists. And so Starbucks actually started establishing a mail order business as a result of all the people who were coming into Seattle.

And Starbucks was a true pioneer where they were educating customer after customer about what good coffee tastes like. And the Pike Place Market gave them an interesting vehicle because of the tourists. And so Starbucks actually started establishing a mail order business as a result of all the people who were coming into Seattle.

And I think if I remember, there was so many points that I can remember where people were talking about Starbucks way outside of Seattle as if it was some kind of iconic big company. I think people came to Seattle, is this it? This is the 800, 900 square foot store in Seattle, Washington in Pike Place Market.

And I think if I remember, there was so many points that I can remember where people were talking about Starbucks way outside of Seattle as if it was some kind of iconic big company. I think people came to Seattle, is this it? This is the 800, 900 square foot store in Seattle, Washington in Pike Place Market.

This is the Mecca. And so tourists would come, they would buy a bag and then they would fill out some kind of information and say, I'd like to have this mailed to me because I don't have anything like it in my city.

This is the Mecca. And so tourists would come, they would buy a bag and then they would fill out some kind of information and say, I'd like to have this mailed to me because I don't have anything like it in my city.

Yeah, that's what happened. And because coffee has a shelf life of basically a week to 10 days and we didn't have a vacuum bag at that time, We were shipping small amounts because to Jerry Baldwin's credit, he had such a fastidious point of view about quality and freshness. And I think that had a huge impact on me.

Yeah, that's what happened. And because coffee has a shelf life of basically a week to 10 days and we didn't have a vacuum bag at that time, We were shipping small amounts because to Jerry Baldwin's credit, he had such a fastidious point of view about quality and freshness. And I think that had a huge impact on me.

This was a small business, but the equity of the brand, even back then, was much larger than the size of the business. And the opportunity that I saw, even when we had four or five stores, was well beyond Portland, Oregon. And I was always kind of pushing, we could do so much more. And then the whole thing blew up for me when I went to Italy in 83.

This was a small business, but the equity of the brand, even back then, was much larger than the size of the business. And the opportunity that I saw, even when we had four or five stores, was well beyond Portland, Oregon. And I was always kind of pushing, we could do so much more. And then the whole thing blew up for me when I went to Italy in 83.

Okay, so before the Italy trip, I just want to really contextualize coffee in America. I think coffee had been declining since like 1940. It's still part of the American culture, but it's not that it's on the way out, but there's nothing new or interesting except for this little segment of specialty coffee, which was tiny.

Okay, so before the Italy trip, I just want to really contextualize coffee in America. I think coffee had been declining since like 1940. It's still part of the American culture, but it's not that it's on the way out, but there's nothing new or interesting except for this little segment of specialty coffee, which was tiny.

And I think what you've just described, the reason for that is that coffee was terrible. It was instant coffee, stale coffee, and primarily robusta beans. which is the low-grade coffee that Starbucks was never involved in. Yeah, walk us through the two types of beans. There's mainly two types of agricultural coffee grown for commercial use.

And I think what you've just described, the reason for that is that coffee was terrible. It was instant coffee, stale coffee, and primarily robusta beans. which is the low-grade coffee that Starbucks was never involved in. Yeah, walk us through the two types of beans. There's mainly two types of agricultural coffee grown for commercial use.

Robusta beans, low-end coffee, primarily in instant coffee, and high-grade Arabica coffee. But even within the Arabica coffee, there's significant segments of quality and integrity. And Starbucks has always played from 1971 to today at the highest level.

Robusta beans, low-end coffee, primarily in instant coffee, and high-grade Arabica coffee. But even within the Arabica coffee, there's significant segments of quality and integrity. And Starbucks has always played from 1971 to today at the highest level.