Article Review – Starbucks Product Recalled for Possible Salmonella

On October 15th, 2012 the Barrington Patch posted an online article about Starbucks. The article brings up the issue that Starbucks product, including Honey Peanut Butter, and Protein Bistro Boxes, are being recalled from their stores in varies states around the United States. The recall, as the title states is because of a possibility of salmonella contaminating the food. The article quotes an article directly from the FDA that talks about the exact details of the recall and give background to what salmonella is and the risks that come with food having salmonella. Surely this has an effect on the market value of Starbucks as a whole because it will do two main things: reduce the net revenue that the store will gain as well as increase their expenses. Their net revenue will be down because while the products are off the shelves waiting to be restocked. Their expenses will increase because they now have to pay for a whole new shipment of the recalled products to all of the stores that were included in the article.


Article Review – Starbucks Tea Deal Develops Aftertaste

This article, publicized in the Wall Street Journal on December 9th, 2012 is about Starbucks and it’s move to acquire the small business Teavana Holdings Inc. Starbucks had already acquired the Tazo Tea brand from this same company back in 1999 for $9 million. This new reported deal would be worth $620 million which would be the largest ever acquisition by Starbucks. There has been a lot of speculation by analysts to whether or not this is a smart move for Starbucks. Most analysts think that Starbucks has better options within the global tea market. Starbucks’s CEO Howard Schultz is staying with the stance that “the two brands can help drive customers to one another by uniting their customer loyalty programs, social-media efforts and mobile applications.” Starbucks also believes that “Teavana’s moneymaking potential from its current form is a big plus.” In the long run I think this deal will have a positive effect on Starbucks as a company as well as the market value of the company.