Mandelson strop: Who the f@#! is Howard Schultz?
The Starbucks boss provoked an extraordinary response from Lord Mandelson when he dared to criticise the state of the British economy
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Lord Mandelson’s famed silver-tongue deserted him on a business trip to New York when he responded with a four-letter tirade against one of America’s most senior entrepreneurs, the Starbucks boss Howard Schultz.
The American, chief executive of the world’s biggest coffee chain, spoke of his corporation’s recent struggles in a television interview. “The concern for us is western Europe and specifically the UK,” he said. “The UK is in a spiral.” Mr Schultz described consumer confidence in Britain was “very, very poor”.
The furious Business Secretary resorted to an uncharacteristic Anglo-Saxon turn of phrase, storming at a cocktail party in New York: “Why should I have that guy running down the country? Who the fuck is he?”
Lord Mandelson added a withering comment on Starbucks’ assessment of the UK economy, adding: “How the hell are they doing?”
Starbucks plans to close 900 of its 16,000 outlets worldwide as consumers buy fewer £2-a-time lattes and mochas.
Lord Mandelson, on a brief visit to New York to bang the drum for British business, overheard an interview by the normally-careful Mr Schultz, and the Business Secretary’s face reddened.
In a public interview on the CNBC TV station, he used less fragrant language but was no less damning in his comments: “The UK is not spiralling, although I have noticed that Starbucks is in a great deal of trouble. But that may be because of their over exposure given the state of the market. So please do not project Starbucks on to the UK economy as a whole.”
As communications chief of the Labour Party in the mid-1990s, Lord Mandelson guided Tony Blair to power in 1997 by softening the party’s image, famously introducing its red rose emblem and backing well-groomed politicians to represent the party on television. As Northern Ireland Secretary and Trade Secretary, his delivery was rarely less than polished, in public at least, and he has continued to be an exemplar of diplomacy since he returned to the Cabinet last year.
He was less guarded at an official reception at the British consul’s residence in New York, where he swore about the company, which has two million customers and 713 stores in Britain.
Lord Mandelson, in the US to counter the fears of investors who were receiving too gloomy a picture about Britain’s economic prospects, was unrepentant about his outburst, although he conceded he did not need to swear.
His spokesman told The Independent: “We stand by the statement, but we don’t stand by the language.”
Starbucks later said that Mr Schultz had not intended to do down Britain, which is its third biggest market after the US and Canada.
Lord Mandelson’s comments prompted a conciliatory response from the coffee chain, which said in a statement: “It is a difficult economic situation in the US and around the world. Please be assured that Starbucks has no intention of criticising the economic situation in the UK.” The Seattle-based company added: “The reality of the global economy is that no country is immune to the difficulties. We are all in this together and as a global business we are committed to each and every market we serve.
“Starbucks has been committed to the UK since it arrived in 1998. Today, the UK is one of its most important markets with over two million customers welcomed in more than 700 coffee houses every week nationwide.”
However, its stores have been undercut by cheaper fast-food outlets and pub chains, which have made a pitch for the mid-morning coffee break with cheap filter coffee. Starbucks also faces competition from rival chains and, unlike in the US, it is not the biggest coffee corporation here, with fewer outlets than Costa Coffee.
A spokeswoman for Starbucks said: “In the UK we haven’t confirmed any news of closures. What we are doing at the moment is reviewing the portfolio of stores.”
Lord Mandelson, accompanied by the Health Secretary Alan Johnson, held talks with American drug companies about investing in the UK.
After hearing Starbucks’ statement, Lord Mandelson said: “I’m glad Mr Schultz has stepped back from his remarks. I made my point and I regard the matter as closed.”
Lord Mandelson said Britain and the US were in a difficult position, having made the first moves to combat the banking crisis but yet to see the first “signs of change”. He said there was “no value in trying to create frenzy”, and highlighted the need for a “steady nerve and cool judgment”.
Say what? When politicians turn the air blue
* Sir Richard Mottram, former permanent secretary at the Department for Transport: “We're all fucked. The whole department's fucked. It's been the biggest cock-up ever.”
* John Prescott: “That fucking taff -speaking fucking taff” – explaining to a reporter how Welsh-speaking Labour spokesman Denzil Davies, giving an interview nearby, was putting him off.
* Jack Straw: “I’m not fucking answering these fucking stupid questions”. The then Foreign Secretary in an interview with the BBC about the legal advice given to ministers before the Iraq war.
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Comments
This gutless sack of sh*t brings nothing but shame on Britain.
He's even been ennobled, so that we can't get rid of him.
Not a lover of this language in print or public, so I think I will leave the independent out of my collection of papers.
Just noted your statement here "Offensive or abusive comments will be removed and your IP logged and may be used to prevent further submission"
Starbuck's is doing poorly in the UK - more likely because the competition is so much better, not that the economy is so much worse. For example Cafe Nero was standing room only when I was recently there.
In the USA Starbucks is distinct as a European coffee bar, obviously is less of a novelty in Europe (yes even reluctant UK)! - so what is Starbucks' niche in the UK? other than as a tenuous American import (like Budweiser)
Mohamed Ahmad
Manchester
U.k
These champagne socialists have become too greedy and manipulate rules and regulations to suit their personal agendas. None of them will resign despite facts exposing them as incompetents. The unelected Mandleson presides over a department incapable of halting the tragic daily unemployment figures from climbing. What is he doing arguing with the boss of a US coffee chain? How pathetic. The millions of unemployed want to know how they will survive this down turn. They don't need platitudes, they need work. Why is the Government on a 10 day holiday. Parliament is only sitting for 126 days this year. This Labour Government is a disgrace.
Brown's and his dysfunctional coterie of Ministers should resign. They have ruined our country and made it a laughing stock. No other counrty in the World would tolerate being brought to its knees through such poor governance. This country desperately needs a General Election soonest.
Starbucks are not serving real coffee but weak, hot coffee milk shakes. Not what you need to give you a boost, what you need is a decent shot of espresso to start the system up!
I suggest that the UK would be better off without people like hank2 running our country down.
And I agree with Mandleson for once, who the hell is Mr Schultz to say what he has said about the UK. The sooner Starbucks goes under the better, they started out as a unique store in Seattle but now are yet another faceless chain seen everywhere, the McDonalds of the coffee world. They seem not to care about wasting water and run taps all day in every store, and the coffee is third rate, you can get much better coffee in independent cafes than in these chains and it costs less and you get served by people who actually care about the service they provide.
I also have to agree with itsafarce - what is the Independent doing not 'bleeping' the language at the bottom of the page, completely unnecessary!
You come here criticising British politics and citizens when you people in the US elected that half wit Bush to run your country. Started two wars in Iraq and Afghanistan by lying to the people and dragging UK and other countries in to do your dying.
But then I diversify, As I understand it, the present economic crisis was started by the USA wasn't it?
"you people in the US elected that half wit Bush to run our country" via the subversive local quislings who populate government
By the way, we elected a woman Prime Minister thirty years ago, and a Jew one hundred and forty years ago. How long will it be until Americans elect either of those social groups President? Not in your lifetime, mate. The US had black people for 230 years before it elected one of them President. We've had black and Asian people in Britain for fifty years, and one will be Prime Minister in my lifetime. We're so far ahead of you on tolerance you'd be better off talking about a different topic. You're embarrassing yourself.
Please show us any evidence that americans are 'equipped' to deal with aything. Just words from a lairy stranger aren't going to win us round to your way of thinking, we'll need something else to go on.
Or should I say 'thinking'...
If you're desperate to be rid of us, then the feeling's mutual mate.
Regarding the choice of President, I salute the Americans for voting in Obama but we've had Jewish Primeministers and a woman primeminister, so we're not doing too bad. And as for tolerence don't even go there. The UK has just banned a couple of your hate preachers from coming here, and whatever else we do we don't dress up in white sheets and burn crosses in the front garden's of black people.
You are obviously not equipped to understand the British in any way. Please feel free to fly home, no one is stopping you.
It is good people are now stopping wasting money on things like this. Hopefully there will be a real change in peoples spending patterns even when the economy kicks up again.
These business's are not typical of UK business's. They will suffer badly and will hopefully be replaced by better value providers.
We've all been through bad times before as a country, that's what happens isn't it? the old guys mess up and the new generation have to come in and clear up their mess bringing their youthful optimism and altered perspective into play and the cycle starts again.
So I will join you in raising a glass to opportunity (Or anything really, I'm British ;-) ) Cheers!
He proudly proclaimed that he is a Zionist and supports the Zionist state with $$$$.
Confidence will only return with a new Government. The present incumbents are only concerned how the deck chairs arranged on the deck of the Titanic, not with sealing the hole. The country must have a General Election soonest.
Blair and Brown sold their souls and did a deal with the devilish bankers. Now Britain is going to elect... the party of the bankers. No more Faustian pacts with Satan, eh, we'll just have Satan himself. Out of the frying pan into the apocalypse.
Oh how I wish for a 'none of the above' on voting forms! I don't feel that by not voting it gets the point across (Govt think we're lazy and stupid as opposed to acutely aware of how lazy and stupid they are!) but voting for someone you know is a) not going to win and b) not ready to win it kind of feels like a wasted vote so it seems like the only viable option for people is to choose between our two parties who are about as much use as a bottle of crisps and as relevant as a puddle of chopped tomatoes. What a pickle!
Victor Blank is one of the small cabal of New Labour financiers who have run the show for the last 10 years. Blank had no hands on experience of banking before he took over Lloyds as Chairman three years ago. He had connections to Labour which have proved extremely useful.
At the helm of HBOS was Lord Stevenson, a former boss of Mandleson and mentor to Tony Blair.Another Labour supporeter without formal banking qualifications.
At the RBS was Fred Goodwin, a long standing crony of PM Brown.
It can be said quite catagorically Blank has been particularly assiduous in cultivating New Labour.He brought a mix of business and political contacts to the table when he joined the notorious conservative Lloyds.
Lloyds was asked to salvage HBOS by merging; Brown removed all the competition rules for his friend, Blank, and was grateful.It proved disasterous and needed bailing out by Brown with taxpayers funds. The Government now has a 43% shareholding.
Before the purchase of HBOS, Lloyds was a perfectly good bank, well managed by its Chief Executive and in little danger of the credit crunch. That has all changed.Brown and Sir Victor Blank have turned both Lloyds and HBOS into the living dead. How much more public funding will be needed?
So when contributors complain and used biased language about the Tory Bankers, get your facts correct first.You have proved that as a desperate Labour supporter you know absolutely nothing of banking or its ramifications. You remind me of this totally dysfunctional Government using spin to cover mistakes.
Better to say nothing than open your mouth and prove you know nothing.
Anyone saying anything that he does not like, is smeared and bullied.
To do it as he does here is outrageous but to do abroad makes him look ridiculous. Who does he think he is? He is an embarrassment and a disgrace.
How long can he get away with it before someone takes a serious dislike to his appalling conduct?
The foundationsof our society will not implode because Mr. Mandelson has sworn. He is correct to point out that Mr. Shultz's comments were irresponsible, and that perhaps he's not so informed on the matter.
However, if we didn't live in a society that was completely dependent on "consumer confidence" it wouldn't matter what Shultz said.
Mandelson, I believe, thinks politics is completely about a party's re-election fundamentally. When Labour got in, there was a chance to break-away from Thatcherism and this fantasy that we can leave businesses to do exactly what they want. Why didn't they do it? Because they too became a party of business. They wouldn't have got in otherwise would they? We like free-enterprise, we love boom and bust don't we? We've been voting for it since the late 70s!
Mandelson's words are of frustration, people like Shultz can have this kind of impact on the economy; he can't. Not this kind of economy.
YHOK YU MUST BE YHOLKYNG
THE HANDYMANDYCANDYDATE WITHOUT A DEMOCRATIC MANDYDATE
IS KNOT A ANGLO
AND IS KNOT A SAXON
LAUD CANDLSUN IS A YHODDISH YHYDD
FUCK IS A KARAKTURYSTYKQHALLY IDENTIFIABLE HEBREW YYDDYSH WURD
SHIT LIKEWISE
M8*
Yes who the fuck is Howard Schulz, who the fuck is Peter Mandelson?
I'm a little disappointed in you backing down though Howard, you could have upped Starbucks standing in the UK if you stood by your words...