mandelson veneer slips

Stevie H · February 18, 2009

quality rant this. doesn't make me like the c*** any more like.

http://www.guardian.co.uk/politics/2009/fe...elson-starbucks

Mandelson launches tirade at Starbucks boss over attack on UK economy

Business secretary hits out after Howard Schultz claims Britain is in an economic spiral

Peter Mandelson vented his anger at comments by coffee chain boss. Photograph: Frantzesco Kangaris/PA

The business secretary, Peter Mandelson, yesterday launched an extraordinary tirade against the head of the Starbucks coffee empire, accusing him of spreading gloom and overly denigrating the state of the British economy.

Angered at remarks by the company's chairman, Howard Schultz – who said the UK was in an economic "spiral" with "very, very poor" consumer confidence – Mandelson accused him of spreading unnecessary misery and speaking out of turn.

Speaking at a diplomatic cocktail reception in New York, he said: "Why should I have this guy running down the country? Who the f*** is he? How the hell are they [starbucks] doing?"

Mandelson's remarks, made in front of journalists at the official residence of the British consul-general, came amid mounting concern in diplomatic and ministerial circles over hardening US opinion towards Britain's economic woes.

British officials have been trying to persuade US economists and commentators that alarm over the country's recession is becoming exaggerated.

Earlier in the day, Schultz singled out Britain as a source of anxiety for Starbucks – which has stores in 49 countries – during an interview with the CNBC television channel.

"The place that concerns us the most is western Europe, and specifically the UK," he said. "The UK is in a spiral."

He said it had taken a year to 18 months from the beginning of the credit crunch for consumer confidence to fracture in the US, but the deterioration had happened far more quickly in Europe once financial cracks appeared.

Asked about his biggest concerns, Schultz said: "Unemployment, the sub-prime mortgage crisis, particularly in the UK, and I think consumer confidence, particularly in the UK, is very, very poor."

A charismatic and often outspoken entrepreneur, the 55-year-old built Starbucks up from a nascent operation in Seattle in 1982 to a global high street brand.

His wealth was estimated at $1.1bn (£770m) by Forbes magazine two years ago, although he is thought to have since slipped below the level of dollar billionaire.

Mandelson heard Schultz's remarks while waiting to appear on the same television show and, once on screen, immediately took him to task.

"The UK is not spiralling, although I've noticed Starbucks is in a great deal of trouble – but that might be because of their over-expansion given the state of the market," he said.

"So please don't project Starbucks on to the UK economy as a whole."

Starbucks recently revealed a 69% plunge in profits to $64.3m for the three months to December.

It announced that it was shutting 300 stores, in addition to 600 closures last year, at a cost of nearly 7,000 jobs.

According to official figures, Britain's economy shrank by 1.5% in the fourth quarter of 2008 in comparison to the third. Unemployment is approaching 2 million.

matty · February 18, 2009

This post is not viewable to guests.

You can sign in to your account at the login page here