Starbucks debuts high-end Reserve roastery and cafe in Seattle

[December 05, 2014]  By Lisa Baertlein
 
 SEATTLE (Reuters) - Starbucks Corp Chief Executive Officer Howard Schultz, who introduced Americans to espressos, Frappuccinos and pumpkin spice lattes, is not about to let a bunch of well-funded independent coffee sellers beat his global chain at the super premium game.

Speaking at preview events ahead of Friday's public debut of the company's 15,000-square-foot reserve coffee roastery and tasting room in Seattle, Schultz vowed to stay one step ahead of rivals, which include "third-wave" coffee chains such as Blue Bottle, Intelligentsia and Stumptown.

"We are never going to allow any coffee company, domestically or around the world, to put us in a subordinate position in terms of quality and access to the highest grade arabica coffee," Schultz said.

Starbucks' industrial-chic Reserve facility turns out small batches of Peaberry Sumatra and other limited-supply Starbucks Reserve coffees that sell for anywhere from $13 to $50 per 8-ounce package. Some of those beans will be brewed and sold alongside food prepared by James Beard Award-winning chef Tom Douglas, while others will be packaged for sale in more than 1,500 existing Starbucks shops around the globe.

Schultz plans to open a second "Star R" branded Reserve roastery and tasting room in Asia in 2016. He also promises to add 100 reserve-only coffee shops in the coming years.

"This is an opportunity for us to educate our core customer and new customers about the exotic nature of these rare, small-lot coffees," said Schultz, who added that he was inspired by fictional chocolate factory owner Willy Wonka to "take people on a magical coffee ride."

The CEO says he does not track the moves of his small rivals, which have been reaping millions of dollars in venture funding from high-profile investors such as Google Ventures, TSG Consumer Partners and Jack Dorsey, the co-founder of Twitter Inc and Square.

Those purveyors have won over the likes of Los Angeles-based photographer Jesse DeFlorio, 26, who frequently buys chestnut praline lattes and other flavored coffee drinks at Starbucks.

He has not visited the new Reserve facility but said it would not be his first choice when he is plunking down $5 for a super premium brew.

For that, DeFlorio said, "I would pick any of the third-wave coffee companies."

(Reporting by Lisa Baertlein; Editing by Lisa Shumaker)

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