The Starbucks Story (19 page)

There is pride, too, in another aspect of the music initiative: when Starbucks produced, released and distributed a CD of Ray Charles’s final recordings of duets with leading singers. A week after its release on September 1, 2004,
Genius loves company
had sold 44,000 copies through 4,000 US Starbucks stores and risen to number 2 in the Billboard charts. It stayed in the top 10 for several weeks – the first time a record had done so without the benefit of radio play.

This was evidence, Howard Schultz believes, of Starbucks’ unusual relationship with its customers and the trust it has earned. “People trust Starbucks’ editorial voice around a genre of music. It’s all to do with rediscovering great music, and it appeals to people who are music lovers but no longer comfortable in music stores dominated by the charts. It seems there are millions of people like that. A music industry businessman told me last week, Starbucks is a ray of hope for the ethical and profitable distribution of music for artists and labels.”

So the story continues. New targets have been set to open 30,000 stores worldwide, half of them in the US. The core product is in better shape than ever, and Starbucks is uncovering new sources of quality coffee beans. It is working with farmers to improve yields and the environment. For Howard Schultz, there remains an artistry in this. But at the same time the commitment to innovation gathers pace, particularly through music.

This puts joy and soul into Starbucks, but there remains a heart, too. Howard Schultz ends our conversation with a surprising fact about healthcare for Starbucks’ US partners. As the rising cost of healthcare becomes a political issue, Starbucks is entering the public arena in a way it has never done before, while avoiding allegiance to any party. It now spends more on healthcare for its partners than it spends on its basic raw material, coffee. “And,” Schultz stresses, “we will never turn back on this benefit.”

People still matter most to this brand, and it remains true to its principles. Other brands should take note.