Starbucks loses USD 11 billion due to poor sales, boycotts
Houston: Global political tensions are spilling fast into Seattle-based Starbucks Corporation, as the company has lost approximately 11 billion dollars in value, erasing 9.4 per cent of the company's total value.
Within a span of 19 calendar-days, since its November 16 Red Cup Day promotion, shares of Starbucks have plummeted 8.96 per cent, which equates to a nearly USD11 billion loss, amid analysts' reports of slowing sales and a subdued response to the holiday season's offerings.
The boycotts at the Seattle, Washington-based chain have deep roots, touching on sensitive geopolitical issues after the company found itself in hot water following a tweet from Starbucks Workers United, the union representing many of its baristas, expressing solidarity with Palestinians.
"Amid an ongoing boycott due to the Israeli occupation's aggression against the Gaza strip, the undercurrent of discontent signals a challenging brew for the company's future," an industry analyst said.
Starbucks stocks declined for 12 consecutive stock market sessions, the longest-ever recorded streak since the company went public in 1992, and the stock currently hovers at around USD 95.80 per share, down from its yearly high of USD 115.
The company has denied wrongdoing in the scenarios but faces the challenge of maintaining its brand reputation amid divisive global issues.
In a recent call with analysts, Starbucks CEO Laxman Narasimhan said he remains optimistic about the company's diversified channels and ability to engage customers despite macroeconomic challenges and changing consumer behaviours.
The recent boycott of Starbucks comes in part of a large boycott of several global brands over their support of Israel. Starbucks in Egypt reportedly laid off workers in late November after being financially affected by the boycott - forcing it to cut expenses.
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Bengaluru: First-time Congress MLAs with merit can be made ministers, says Moily
Bengaluru: Former Chief Minister Marpadi Veerappa Moily on Tuesday said that first-time Congress legislators could be considered for ministerial berths during the proposed Cabinet reshuffle if they have the requisite merit.
Moily responded to reports of over 30 first-time Congress MLAs seeking Cabinet positions by stressing the need for a Cabinet with a balance of merit among first-time, young, and senior leaders.
“We entered politics when the Chief Minister Devaraj Urs recognised us in 1972. If legislators have merit and dedication, they can be included in the Cabinet,” Deccan Herald quoted him as saying.
He said that there is nothing wrong with new MLAs aspiring for ministerial posts and that no one has the moral authority to question such aspirations. He recalled that he, too, was a newcomer in his early political days and said those with eligibility should be given ministerial posts.
“If the MLAs have merit, the Chief Minister will recognise them. In our time, we did not lobby for ministerial berths. We were recognised by the Chief Minister,” he said.
Addressing demands for a change in Chief Minister and current talk of a Cabinet reshuffle, Moily said that legislators voicing aspirations should not be seen as engaging in groupism.
He also said that Chief Minister Siddaramaiah is scheduled to visit Karkala in Udupi district on Wednesday.
