Dive Brief:
- Starbucks is promoting global marketing chief Brady Brewer to CEO of international operations as part of a larger structural shakeup at the top ranks of the coffee giant, according to a press release.
- Brewer’s transition will see Starbucks sunset the global CMO title as it shifts focus to geographically based units with regional marketing support. The brand also announced two new executive roles to help guide marketing and innovation moving forward.
- Lyne Castonguay has been named executive vice president, chief merchant and product officer, overseeing a newly created function in charge of global product strategy and growth platforms. Starbucks said it expects to appoint a new global brand creative leader soon.
Dive Insight:
Retooled leadership for Starbucks heralds potentially big changes for marketing at the quick-service restaurant that has been embroiled in labor disputes and customer boycotts. The new structure goes into effect April 1.
Restaurant brands often tweak their approach to marketing, dropping appointments with wide remits in favor of specialist executives. These shake-ups can be cyclical: McDonald’s ditched the global CMO title in 2019 only to reinstate it just a couple of years later.
Still, Starbucks in the near term could be a brand that presents itself in a different light to consumers. Global CMO Brewer is taking the reins as CEO of international, putting a brand steward in the driver’s seat for markets including Asia-Pacific, Europe, the Middle East and Africa. Other QSRs have recently bumped marketing executives up to their top ranks. Taco Bell moved Sean Tresvant, formerly global brand chief, to the CEO spot at the start of the year.
Brand gurus can have a better grasp on shifting consumer tastes and cultural trends than leaders from other backgrounds. Keeping a pulse on young cohorts like Gen Z, which has expressed lower levels of brand loyalty compared to older consumers, has become vital for QSRs that are prioritizing digital- and mobile-first channels. Gen Z has also had a prominent presence in some of the boycotts against Starbucks in the past few months, which have impacted earnings performance.
In addition, some recent experiments in branding and loyalty have not panned out for the Frappuccino purveyor. The company this week said it would wind down a beta for its non-fungible token loyalty website called Starbucks Odyssey, Restaurant Dive reported.
Starbucks’ leadership tweaks, part of its Triple Shot with Two Pumps Reinvention initiative, included several other executive moves. Michael Conway, who’s been a Starbucks partner since 2013, is stepping up as CEO of North America while Sara Trilling will remain executive vice president and president of the region. Belinda Wong and Molly Liu will continue to serve as co-CEOs of China, reporting to Starbucks’ main chief executive Laxman Narasimhan, a restaurant industry outsider who jumped to the company two years ago from Reckitt Benckiser Group.
The realignment around regional appointments comes as the company pushes for greater growth in international markets, with three-fourths of new store openings planned for outside of the U.S. In lieu of a global CMO, Starbucks will emphasize regional marketing support, along with creating two new roles.
Taking on duties as chief merchant and product officer, Castonguay will lead Starbucks’ Global Channel Development and Siren Retail units. Starbucks also teased the pending hire of a global brand creative leader who will “continue to shape culture while elevating human connection.” Both executives will report to Narasimhan.
“Throughout our history, we have continued to reinvent not who we are or what we stand for, but what we do and how we connect with our customers and deliver our long-term aspirations,” said Narasimhan in a statement. “Because of our partners, and with our strategic plan and world class-leadership team, the best days of Starbucks are ahead of us.”
