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Starbucks to Enter Russia’s Market Next Year
Starbucks, the world’s largest chain of coffee houses, has announced plans to make a foray into the Russian market. The first Starbucks café in Russia is to open in Moscow next fall. Market participants are not sure if the format of Starbucks with restricted menu and takeaways will find its footing in Russia.
American Starbucks has said it hopes to enter markets in Brazil, Egypt, India and Russia next year. Moscow’s second Starbucks (the first one works in the U.S. embassy) is to be opened in fall 2007. Starbucks plans to open as much as 20,000 stores outside the United States.
Starbucks runs 12,000 coffee houses in 37 countries. The company reaped $6.36 billion in 2005, the net profit coming to $494.4 million. Its capitalization is $29.8 billion.
Starbucks have been in talks with a number of Russian companies on the sale of franchise for a while. It was only at the beginning of the year that the company has chosen Monex Trading as the Russian partner. Monex Trading is currently developing the chains of Mothercare, The Body Shop and Next in Russia.
Kofe Hauz, Russia’s leading chain of coffee houses, is not afraid of the new rival. “The brand of Starbucks is largely unknown in Russia, so they’d better not to hope to win the market right away,” said Vladislav Dudakov, president of Kofe Hauz.
Other market players, however, are more moderate, referring to Starbucks’ huge success in China which has been always considered a tea nation.
www.kommersant.com
All the Article in Russian as of Oct. 07, 2006
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