Russian duo hail Stars Coffee as successor brand to Starbucks

MOSCOW, Aug 18 (Reuters) – A restaurateur and rapper duo unveiled Stars Espresso on Thursday, reopening the chain of espresso outlets in Russia previously owned by Starbucks Corp (SBUX.O), the newest main firm rebranding after a months-long Western company exodus from the nation.

At a packed launch in central Moscow, rapper Timati offered the brand new model, whose emblem options a picture of a lady with a star above her head, alongside co-owner and restaurateur Anton Pinskiy, earlier than outlets begin opening on Friday.

Banned from utilizing the Starbucks emblem, Timati mentioned that they had sought to seek out some continuity, particularly the round form and “feminine gender”, which he mentioned contrasted properly with the brown, cigar-like “masculine color” within the new emblem.

“Individuals’s perceptions could also be totally different,” mentioned Pinskiy. “However for those who evaluate, then other than the circle, you will not discover something in widespread.”

Starbucks declined to touch upon the similarity of the emblem and title, however referred to an earlier assertion by which it mentioned the corporate had made the choice to exit and now not had a model presence within the Russian market.

Since Starbucks had its personal useful resource and manufacturing base, Timati mentioned the duo needed to discover new suppliers, however that they had encountered no issues.

Stars Espresso imports beans from Latin America and Africa, Pinskiy mentioned, with suppliers of different gadgets based mostly in Russia.

“We simply discovered different suppliers, discovered the proper roasters, and since the baristas combined all of it accurately, we now have a product that we predict can be aggressive,” he mentioned.

Seattle-based Starbucks, which helped popularise takeaway espresso in a historically tea-loving society, mentioned it could exit Russia after almost 15 years in late Could.

Starbucks had 130 shops in Russia, operated by its licensee Alshaya Group, with almost 2,000 workers within the nation. Pinskiy mentioned outlets would progressively reopen all through August and September.

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International franchise operator Alshaya, established in Kuwait, had misplaced curiosity in doing enterprise after Starbucks pulled its model from Russia, Timati instructed Reuters. Alshaya didn’t instantly reply to a request for remark.

“We received the tender – there have been a whole lot of contributors – acquired it and made our personal model,” he mentioned.

The deal mirrors a wider pattern amongst Western manufacturers, which has been altering the nation’s retail and company landscapes because the battle in Ukraine enters its sixth month.

Renault offered its majority stake in carmaker Avtovaz to a Russian participant for only one rouble, whereas McDonald’s Corp (MCD.N), whose eating places have now change into Vkusno & tochka, didn’t disclose a determine.

Each of these offers included buyback choices, however Pinskiy mentioned that did not apply to Starbucks because of the franchise mannequin it operated underneath in Russia.

He declined to reveal figures in regards to the take care of Alshaya. “We have now invested as a lot as we paid them,” Pinskiy mentioned. “That is (an) costly pleasure.”

The pair mentioned they have been fascinated with extra acquisitions, however gave no additional particulars.

Whereas the partnership might seem unlikely, Timati, one in every of Russia’s most well-known rappers, co-founded the Black Star Burger chain in Russia, which sells a “Timati Burger”.

He’s additionally recognized for his help of the Kremlin and in 2015 launched a monitor containing the lyrics “President Putin is my greatest pal”.

Pinskiy, who earlier this month instructed Russian reporter and political activist Ksenia Sobchak that he had by no means tried espresso in his life, has a string of eating places in his portfolio, together with a joint undertaking with Timati, REDBOX, which serves Pan-Asian delicacies.

Reporting by Alexander Marrow; Enhancing by Josephine Mason and David Holmes

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