Starbucks CEO Promises Company Will Thrive

By LAUREN SHEPHERD

NEW YORK (AP) — Starbucks Corp. Chief Executive Howard Schultz on Wednesday promised shareholders the gourmet coffee company will succeed despite the global economic downturn by taking on its competitors and offering customers a better deal.

"Starbucks Coffee Co. will not only survive but we will succeed during this environment," he said. "I promise you that."

During a webcast of the company's 18th annual shareholder meeting in Seattle, Schultz said he plans to dispel the myth that all Starbucks coffee drinks cost $4 — a perception that has helped competitors like McDonald's Corp. break into the espresso beverage market. A tall Starbucks' drip coffee goes for a bit less than $2 a cup, depending on the market, for instance.

"We've allowed other people to define us," he said.

Schultz also took on naysayers who have said the company is showing signs of desperation in its offer of deals on breakfast pairings and its introduction this month of instant coffee.

"We're being incredibly smart," Schultz said. "We're doing everything we can to be sensitive to the needs of our customers. We can no longer sit back and ignore the pressure that our customers are under."