COVID-19 Impact on Starbucks (Consumer Goods)

Summary

COVID-19 Impact on Starbucks (Consumer Goods) July 10th, 2020 based on market analysis and brand diversification by industry and geography

Starbucks' consumer goods business in North America will be impacted by spread of COVID-19 virus with the US being the current epicenter. Across other regions, company's business will be impacted by store closures and declining customer traffic. Overall the outlook of the consumer goods sales is not favorable for the company. Starbucks has been facing a difficult time via its coffee outlet business, and its consumer goods business is also likely to suffer from the impact of COVID-19, not supporting the losses of foodservice business.

Scope

• Starbucks' retail brand sales in 2020 will not help to mitigate the losses generated via its coffee outlet chain
• Off-trades sales expected to suffer losses as customers reduce their visits to stores amid lockdown
• Starbucks sales in North America are expected to suffer as COVID-19 cases in the US grow exponentially
• Revenues of soft drink categories suffered owing to demand and supply disruptions caused by COVID-19 outbreak
• Hot drinks sales in North America are still at risk due to closure of retail outlets

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