In a major exercise to indicate that it is diversifying from its core business, the world’s largest chain of coffee shop operator Starbucks has redesigned its logo and dropped the words Starbucks Coffee from the famed insignia.
In the new white-on-green logo of the US coffee giant, the company only retained the two tailed mermaid’s image.
However, not everybody’s excited. “I think it’s nuts” was the reaction of James Gregory of Core Brand – a brand consulting firm. Questioning the reason behind such an exercise, he asked “What’s it going to be – the coffee formerly known as Starbucks?”
As part of the diversification process, Starbucks has already started selling ice creams and plans are in place to launch Beer and Wine at selected US outlets.
Defending the logo change, Mr. Howard Schultz – CEO, Starbucks said the new image mirrors the evolving nature of Starbucks business. “What is really important here is an evolutionary refinement of the logo, which is a mirror image of the strategy”, he said; adding “This is not just, let’s wake up one day and change our logo”.
Starbucks saw a major change in its fortunes in 2010 when sales for the first three quarters were reported to have more than doubled compared to same period, previous year.
The rebranding took place for the first time since the company went public in 1992 and listed on NYSE.