Starbucks Appoints Laxman Narasimhan as Next CEO

(Photo by Bloomberg)

[Asia Economy Reporter Yujin Cho] American Starbucks has appointed Rakesh Narasimhan, CEO of British household goods company Reckitt Benckiser, as its next CEO.

Starbucks announced on the 1st (local time) that Narasimhan will join Starbucks on October 1st, following current CEO Howard Schultz, and will become a board member on April 1st next year. Schultz will continue as an advisor and serve as interim CEO until April next year.

Narasimhan, who will lead Starbucks after Schultz, has been recognized by major foreign media such as CNBC for his 30 years of experience leading global consumer brands, brand development, and innovation achievements.

Melody Hobson, chairman of the Starbucks board, said in a statement that day, "His hands-on experience leading strategic change in consumer-facing businesses is expected to be an ideal choice to accelerate Starbucks' growth and seize the opportunities ahead."

Indian-American Narasimhan spent 19 years at global management consulting group McKinsey and served as an executive at PepsiCo for seven years from 2012. He then succeeded Rakesh Kapoor as CEO of Reckitt Benckiser in 2019.

The world's largest coffee chain Starbucks has faced management difficulties due to declining sales and net profits caused by the spread of COVID-19 and intensified market competition, with its stock price falling 27% over the past year.

According to the U.S. Wall Street Journal (WSJ), Starbucks is promoting a major innovation by reviewing all aspects of its business from scratch, including beverage recipes and store layouts, to overcome the crisis.

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