Starbucks Stirring Up Fresh Ideas

Yesterday I had the opportunity to sit down with the man behind Starbucks (SBUX), Howard Schultz. His relationship with the company dates back to 1983. The brand and the image of the once small coffee company from Seattle took the country by storm until things started to come undone when the distribution plan started to fail. With over 11,000 stores worldwide, Starbucks was a massive success in a strong economy. When things began to falter, Schultz decided to come back. A year into his return position as CEO and the stock is down from $18 dollars to just below $10 dollars.

Yesterday, Schultz unveiled a new product called "Via". It's an instant coffee -- something unthinkable for a company known for the best-tasting coffee in the business. But while instant coffee may have a negative connotation attached to it, Schultz says don't discount the $17 billion market for instant coffee.

I had the opportunity to taste the two different versions. Between us, I am not a coffee drinker, nor have I ever been. I prefer tea and Diet Coke. It was fun to do the taste test. It's very much like tasting wine. You need to look for the same qualities in taste and palette. As if I know what I'm talking about!

Truth be told, the stock might not reflect it, but Schultz is a VERY IMPRESSIVE guy. He knows what he wants, he's accountable, engaged, dedicated and thinks beyond the four walls of Starbucks to the places where he and his company can make a difference. That's incredibly reassuring at a time when too many CEOs are being scrutinized for their failure to protect or predict the current state of the economy. As far as I'm concerned, the jury is still out on this move and others that he has implemented over the past year. If I were a betting man, I'd bet on him.

Take a look. See what report card he gives himself and what he says is necessary to increase market share and turn stores into profit centers.